World Bank warning: Bucharest is the European capital with the highest exposure to earthquakes
"Furthermore, potential, frequent floods in the country threaten losses in the billions of dollars - disproportionately affecting the poorest people in rural communities. A more prosperous Romania is therefore inextricably linked to a more resilient Romania", wrote Tatiana PROSKURYAKOVA, on the blog.
Tatiana PROSKURYAKOVA also reminded that, on June 19th, World Bank's Board of Directors approved the Country Partnership Framework for Romania, for 2018-2023, which will focus on three main pillars. One of those pillars brings in a strategy to strengthen Romania's preparedness to cope with natural disasters and climate change's impact.
Although the capacity to react to natural disasters is not a common topic amongst many people, strengthening this capacity for Romania's level is of fundamental importance for the country's livelihood and socio-economic progress.
In Romania, for housing's financial protection against three catastrophic risks - earthquake, floods and landslides -, was developed the mandatory housing insurance system, managed by the private company PAID Romania - Natural Disaster Insurance Pool. Also, those who want to protect their home against additional risks and for a larger amount can choose, in addition to the mandatory PAD insurance policy, an optional insurance policy.
Despite the dangers threatening more than 8,9 million homes in Romania, the insurance penetration rate remains below 20%. By the end of April 2018, a total of 1,7 million mandatory housing insurance policies were in force, according to PAID's data.