MACEDONIA: membership in EUROPA Re subjected to the Parliament approval

16 November 2011 — Daniela GHETU
macedoniaThe Government of the Republic of Macedonia will lend USD 5 million from the World Bank in order to acquire a 19.89 % stake in EUROPA Re, a catastrophe risk reinsurance company in the process of formation owned by countries of Southeast Europe and Caucasus.

The proposal-law submitted to the Macedonian Parliament aims to sustain the insurance market's development and to facilitate access of households and businesses, primarily farmers and small and medium-sized firms, to an affordable form of insurance against losses caused by natural disasters.

EUROPA Re is being created to address very low levels of catastrophe and weather risk insurance penetration in Southeastern Europe and the Caucasus. Preparation of the Facility began in 2008 with the financial and technical support of the World Bank and the Swiss Secretariat for Economic Affairs (SECO). Albania, EUROPA Re's first shareholder, joined in the spring of 2010; Serbia, Macedonia, Bosnia and Herzegovina, and Georgia are significantly advanced in the process of joining EUROPA Re. Montenegro, Bulgaria, and Poland have also expressed interest in becoming EUROPA Re shareholders in the near future.

Membership in EUROPA Re is open to all countries of Southeast Europe and the Caucasus. EUROPA Re's business model is built for financial sustainability. The Facility will be established and registered in Zug, Switzerland, and subject to Swiss insurance regulations, as Switzerland is known for having the most rigorous and far-reaching risk-based insurance supervision regime in the world. Up to 95% of EUROPA Re's risk exposure will be reinsured with "A" and above rated reinsurers.

More details concerning the EUROPA Re's business model, membership, products etc. are available at www.europa-re.eberlesystems.ch.

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