MANDATORY HOUSEHOLDS INSURANCE - A COMPLEX RISK MANAGEMENT ISSUE FOR THE ROMANIAN INSURANCE INDUSTRY

Romania is one of the most exposed countries from the Central and Eastern Europe to natural catastrophes, mainly floodings, landslides and earthquakes, that are causing enormous losses both material and human lives. According to a recent research done by National Institute of Statistics, only a staggering 62% of the households in the urban area are insured whereas in the rural area the situation is even worse with only 1.8% insured households. Based on other countries' model, the Romanian officials are trying to develop an efficient system to cope with catastrophe risks. This is one of the reasons for which the state institutions and the players on the Romanian insurance market are trying to get approved a mandatory households insurance system that would protect them against such future events.