UNSAR part of integrated quake insurance system

Public Finance Ministry and the National Union of Insurance and Reinsurance Companies in Romania (UNSAR) were put in charge of creating an integrated insurance-reinsurance system to cover damages caused by earthquakes, following a government decision. The system will mainly include “attracting private capital, introducing incentives in high earthquake risk areas to stimulate housing renewal, as well as developing the construction (of buildings i.e.) insurance market,” as stated in the government decision. The “integrated” insurance system is included in a National Earthquake Risk Management System and will have to be developed from 2004 through 2006 as stipulated by the government decision. “Our Union will debate this government decision and see what to do next. Nothing has been decided yet. We will probably need to advertise more, to heavily promote this type of insurance, inform homeowners of the incentives they get in form of the deductibility of the home insurance premiums,” Florentina Almajanu, UNSAR general secretary said. It is not yet clear whether this “integrated” system will entail introducing mandatory insurance, but the phrasing in the government decision points to an involvement of the private companies. ZF