“For future PAID shareholders, selling mandatory insurance will be advantageous only if they succeed in cross-selling. In other words, if they succeed in selling other insurance policies as well,” the General Insurance Manager of Generali Insurance, Adrian Marin, said yesterday.
According to Marin, the company estimates a 10 percent rise in business on the optional home insurance segment in 2010. Marin said that Generali Insurance will sell some 50,000 mandatory policies in the first year of this law going into effect, to which some 20,000 optional contracts will be added.
Generali Insurance announced its intention of participating in the PAID program, through an amount which will represent one percent of the minimum €12 million capital, stipulated by law. The legislation sets the maximum participation of each PAID shareholder at 15 percent.
The insured value of a home will range from €10,000-€20,000, while the price of the insurance will be of €10-20. According to data presented by Generali, some 800,000 homes are insured in Romania, of a total of over eight million, which means a 10-12 percent degree of insurance coverage, compared to 60 percent in Hungary and the Czech Republic, and 80 percent in Austria.
