October 10th, 2011, Radisson BLU Hotel - Bucharest, Romania
The first checkpoint of the Romanian natural catastrophe insurance program - implemented in the summer of 2010 -, including the extent to which it has boosted the voluntary household insurance market, is coming: ICAR 2011 - International CAtastrophic Risks Forum. The event marks the first year's review of mandatory household insurance and will take place on October 10th, 2011, at Hotel Radisson BLU in Bucharest.
Here are some key-topics on the event's agenda:
- PAID - The first year of mandatory insurance and boosting the voluntary market;
- Improvements as we go - new amendments for regulating legislative inconsistencies;
- Downside of selling voluntary and mandatory insurance at the same price;
- Cooperation with local authorities - the cross-cut to enhance rural insurance coverage.
Although the purpose of this law is not to apply fines to the population and authorities kept repeating that they would not provide compensation for damages caused by natural disasters, the fines issue still remained the Romanians main concern rather than rising awareness of the need for household insurance. So this summer had began with a real "investigation", in which lawyers, authorities, representatives of the companies have been cited for elucidating the truth regarding the date when fines would begin to apply.
All opinions, more or less divergent, have been silenced on the 15th of July when ISC has announced a new deadline for applying fines for owners who have not bought a mandatory policy or a voluntary insurance that covered the three natural disasters - August 5th, 2011.
Then, ISC has also said it has initiated several amendments to modify the Law no. 26/2008, regarding numerous existing legislative inconsistencies.
The first year's checkpoint
In late June, at national level, the number of insured households was 3,377,026, of which 2,793,628 through voluntary insurance and 583,398 through mandatory insurance, which means a total degree of insurance coverage of the Romanian housing stock of 40.3%. With the deadline of application of fines getting closer, in July the underwritings have increased considerably, both on mandatory and on voluntary insurance, ISC estimating at the beginning of August a total degree of insurance coverage of about 45%.
Click here for details about ICAR 2011!
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