Pool-ul de Asigurare împotriva Dezastrelor Naturale (PAID), an insurance pool against natural disasters established in Romania in 2009, has selected Moody’s to help the organization model and manage earthquake risk.
PAID is an insurance company, consisting of twelve insurance companies forming a pool to provide Romanian homeowners with compulsory home insurance following the provisions of a 2008 law mandating compulsory home insurance against earthquakes, floods, and landslides.
As part of its remit, PAID has regulatory obligations to adhere to, in addition to managing risks within its portfolio. Moody’s is delighted to work with PAID, with the Moody’s Analytical Services team using the Moody’s RMS Romania Earthquake Model to unlock location level earthquake risk analytics with robust probabilistic catastrophic loss modeling.
The Moody’s partnership with PAID will also include cooperation in sharing claims data to help with the ongoing development of Moody’s RMS Europe Earthquake HD Model.
Laura Barksby, Product Manager within the global earthquake product management team, Moody’s RMS, commented: “Moody’s helps many leading catastrophe risk insurance pools around the world, and PAID provides vital coverage for Romanian homeowners for three main risk perils. Earthquake risk is ever present in the country, with events in Gorj county during 2023, and major earthquakes in Vrancea county in 1977, 1986, and 1990.
“We have significant experience and expertise to help PAID achieve their objectives concerning earthquake risk, and we look forward to building our partnership, potentially extending model usage for flood, and ensuring PAID has the risk analytics solutions – both models and technology, to support their mission.”
Ionut Baciu, Deputy General Manager at PAID, commented: “With our obligation as the provider of compulsory home insurance for three significant peril risks in Romania, it is essential that our view of risk is relevant, current, and can help us to achieve our management functions adequate protection to the insured households, to reinsurance and regulatory submissions. Working with Moody’s provides PAID with world-renowned, respected risk analytics that demonstrates our commitment to superior risk management practices.”