Mandatory home insurance, a project under discussion for several years, for which several enforcement deadlines terms have been announced, is likely to be introduced this year, but neither the authorities, nor the company selling these policies can specify a precise date. The introduction of mandatory insurance, forcing home owners to pay 10 or 20 euros per annum for insurance, is again being delayed because the Disaster Insurance Pool (PAID), the company set to sell these policies, must set up a data base that would include information about all housing units of Romania, but also buy reinsurance from the international market with money most likely coming from the Finance Ministry. Marius Bulugea, PAID general manager, estimates that in 2010, after the introduction of mandatory insurance, around 20-25% of residential owners will buy this policy, meaning that insurers' revenues are likely to revolve around 30m euros.
Mandatory home insurance, a project under discussion for several years, for which several enforcement deadlines terms have been announced, is likely to be introduced this year, but neither the authorities, nor the company selling these policies can specify a precise date. The introduction of mandatory insurance, forcing home owners to pay 10 or 20 euros per annum for insurance, is again being delayed because the Disaster Insurance Pool (PAID), the company set to sell these policies, must set up a data base that would include information about all housing units of Romania, but also buy reinsurance from the international market with money most likely coming from the Finance Ministry. Marius Bulugea, PAID general manager, estimates that in 2010, after the introduction of mandatory insurance, around 20-25% of residential owners will buy this policy, meaning that insurers' revenues are likely to revolve around 30m euros.
