PAID competes with the other insurers

The new law on mandatory home insurance, which leaves out of the natural disaster insurance system those owners who bought such insurance on their own, will not significantly affect this programme, considering the number of optional policies is really low as it is, brokers and insurers feel.

“If someone has optional insurance there is no reason why they should get mandatory insurance on top of that,” says Bogdan Andriescu, chairman of the National Union of Insurance Brokers and Consultants of Romania (UNSICAR).
The new version of the law could see PAID (Disaster Insurance Pool) compete with the other insurers, which might come up with better prices in a bid to win over clients.
Costi Stratnic, the sales manager of Omniasig, one of the companies that are not part of the PAID, the organisation that issues the mandatory policies, in turn believes the new law means going back to normal. “We were affected after the launch of the mandatory home insurance system because the insured amount on this segment fell by 20,000 euros and therefore the value of the average policy went down, too.”