Wind of change
One year after the global financial crisis has begun, both insurers and
reinsurers are looking ahead to new times. The Central and Eastern European
economies, which were leading the development wave last year, are now struggling
to keep the pressures under control. Things are no different in the insurance
market than at the macroeconomic level.
However, solutions can only come from the CEE markets. Potential is still
very high, insurers are largely unaffected by the financial turmoil, while
the need for protection is unquestionable - as PRIMM Magazine reports
in its CEE Markets Survey, launched in premiere at Baden-Baden 2009.
Besides all the technical details of present times, clearly the younger
market economies are still the growth engines of the future. This is also
the case of Romania, whose general insurance market will benefit from one
of the most important insurance-related projects ever developed in the region - the
introduction of mandatory household insurance.
Although discussions started almost 10 years ago, it was in October 2009
that PAID, the company which will manage mandatory policies, was officially
formed. 13 privately-owned Romanian direct insurers are shareholders of
PAID, which has to insure up to 8 million houses starting, most probably,
July 1st, 2010. A task as important as the benefits of this project for
individuals, insurers, brokers and international reinsurers.
Discussions are ongoing in Bucharest, not about the general financial
crisis - but viable solutions which finally became reality for the
insurance market during this economic downturn.
Author: Alexandru CIUNCAN
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