The Natural Disaster Insurance Pool (PAID) has sufficient funds of its own and can bring at any time into the country, through the broadest reinsurance program in Central and Eastern Europe, 1.3 billion euros – guaranteeing that those hit by disasters receive compensation, PAID director general Nicoleta Radu told the “Banking Forum” conference on Monday.
“We made sure to also have sufficient operational sustainability, so that we can compensate a very large number of policyholders, should a highly impactful event happen. Let me tell you that, in the event of the magnitude of the 1977 earthquake, with our current portfolio, there would be 200,000 – 250,000 damage compensation files, an amount that is not easy to manage at this point. From a financial point of view, I can I tell you that PAID is faring very well at this moment, it has sufficient own funds, but above all it has an EUR 1.3 billion reinsurance program which is a guarantee that, at any time, those affected by natural hazards are in for compensation. So, the money can be promptly brought into the country as part of the largest reinsurance program in Central and Eastern Europe,” Radu told the event organized by Financial Intelligence.
She added that digitization facilitates a more efficient and faster processing of claims files.
“We have digitized processes in place, including the relationship with the municipalities, which can update their databases instantly from our website. We have end-to-end applications, from the issuance of the policy, notification, acknowledgment, self-reporting up to the calculation of the quote, which is done automatically, so our processes are very fast. In the aftermath of the events this autumn that hit the counties of Vaslui and Galati, we were able to pay the first claims within 48 hours from the date of notification, which is a success, for certain. (…) Unfortunately, insurance is not so widely in use. Even if the flood hit some 6,000 – 7,000 homes, we only had 400 or so application files, which is very little although insurance policies are mandatory,” Nicoleta Radu pointed out.
The publication Financial Intelligence organized on Monday the fifth edition of the “Banking Forum”, an event attended by representatives of the authorities and of the banking system.
AGERPRES National News Agency is media partner of the event.