PAID: 500,000 Mandatory Home Insurance Policies Sold Since July 2010

05.19.2011 By Ioana Tudor

The number of mandatory home insurance policies issued in Romania between July 15, 2010 and May 16, 2011 reached 496,672, according to data released by the Insurance Pool against Disasters, or PAID.

According to PAID, of the total number of insurance policies, 377,987 were issued for homes in urban areas.

Under the law, mandatory home insurance premiums range from EUR10 to EUR20. The insured value will not exceed EUR20,000, and the minimum level is set at EUR10,000.

The first mandatory home insurance policies were issued in July 2010 and cover damages caused by earthquakes, floods and landslides.

In September 2009, 13 insurers signed the documents establishing PAID, a joint stock insurance-reinsurance company that will manage the risk fund meant for paying damages in case of natural disasters.

Local insurers Astra, Platinum Romania and Groupama Asigurari each have a 15% stake in PAID, while ABC Asigurari, Ardaf, Carpatica Asig, Certasig, City Insurance, Credit Europe Asigurari, Euroins (former Asitrans), Generali and Grawe Romania have a 5.5% stake each.

In 2010, the general and life insurance market decreased by 5.7% to 8.36 billion lei (about EUR2 billion). (EUR1=RON4.1254)