Some 12 insurers in Romania have a compensation capacity of EUR 1.45 billion, 60% over the estimated damages an earthquake comparable to the one from 1977 would produce, according to reinsurance broker AON Benfield.

The insurers, which include Allianz-Tiriac , Asirom, Astra, Carpatica, Certasig, Euroins, Garanta, Generali, Gothaer, Groupama, Omniasig and Uniqa, own almost 84% of the insurance market, reports local Hotnews.ro.

The 1977 earthquake had a magnitude of 7.2, making it the second most powerful earthquake recorded in Romania in the 20th century, after the one from November 10, 1940. The earthquake killed about 1,578 people in Romania, 1,424 of them in Bucharest and wounded more than 11,300. The earthquake’s damages were estimated at EUR 909 million.

This study tries to show that the idea that no insurer could play the compensation in the event of such an earthquake is wrong, said Remi Vrignaud president of the association of the Romanian insurers (UNSAR).

editor@romania-insider.com