INTEGRATING STORM COVERAGE IN THE MANAGEMENT OF HOUSEHOLDING INSURANCE IN ROMANIA

Nicoleta Radu, Felicia Alexandru and Dumitru Badea

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2021, vol. 15, issue 1, 175-184

Abstract: This study relies on the information regarding the predictable evolution of a natural phenomenon, i.e., the storm, in the context of the climate changes we are witnessing. This evolution triggers the need for a new approach with regards to the insurance coverage against this risk in Romania. The main challenge in shifting perspective on the coverage of this risk resides in the fact that no suitable database that can be used for storm modeling purposes in insurance has been built so far. The authors advocate the opportunity of including the storm risk among the risks covered by the mandatory householding insurance in Romania. To this end, a model has been built, in keeping with the solvency II framework that the European Insurance and Occupational Pensions Authority (EIOPA) has already applied in certain states in the same geographical area. The model allows for the estimation of the probable maximum loss (PML) for the mandatory homeowners’ insurance portfolio of the company managing this type of insurance in Romania, but also for the entire housing stock.

Keywords: natural disasters; risk management; probable maximum loss (PML); Romanian insurance protection; storm. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://conferinta.management.ase.ro/archives/2021 ... 0IMC%202021/1_17.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:15:y:2021:i:1:p:175-184

DOI: 10.24818/IMC/2021/01.17

Access Statistics for this article

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE is currently edited by Ciocoiu Nadia Carmen

More articles in Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE from Faculty of Management, Academy of Economic Studies, Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Ciocoiu Nadia Carmen ().