PAID can pay 200m euros' worth of damages for earthquake, floods or land slides

The capacity of the reinsurance scheme held by the Disaster Insurance Pool (PAID), the issuer of mandatory home insurance policies, was boosted to 200m euros at the beginning of this year as the sum negotiated last summer had been outpaced by the rate of underwriting in the final months of 2010.

"(...) The capacity of the scheme is regularly updated depending on the volume of underwritten premiums and is set with the aid of some catastrophe models that take into account Romanian conditions," stated Marius Bulugea, president of the company.

PAID started issuing home insurance policies against damages caused by floods, earthquakes or land slides in July 2010, a moment when a reinsurance scheme that could cover damages up to a 100m-euro cap was set. The capacity was doubled after the number of policies issued daily had reached several thousands last autumn.

PAID in early March 2011 had over 461,000 insurance policies, with the value of gross underwritten premiums revolving around 7.9m euros.