Insurers: Too much red tape for mandatory home insurance

The government on Tuesday approved the law draft on mandatory home insurance, however, insurers are not happy with its current form, and believe it involves too much red tape. “The system is intricate, and ambiguities are bound to occur during the process. Insurers are supposed to sell these policies through agents and brokers, after which they will centralise their client databases, which will be cross-checked with local administrations’ databases, in order to detect those without insurance. These databases will be difficult to compare, with an excessive amount of red tape,” says Catalin Stroe, sales manager for the insurance company Asirom. Stroe also believes the sale of mandatory insurance will involve high costs for insurance companies, as it will be conducted through agents and brokers, due to the low level of premiums paid by the insured parties. The law draft provides insurance premiums worth 10 or 20 euros and depends on the type of home and the insured sum, which ranges from 10,000 to 20,000 euros.