The  Insurance  Pool  against  Natural  Disasters (PADROM) Romania was established in November 2009 as an insurance and reinsurance company, formed by an association of insurance companies in order to provide Romanian homeowners with compulsory home insurance in accordance with the provisions of Law no. 260/2008. Under this  law,  PADROM  covers  three  specific  risks  within Romania: earthquake, flood, landslide.

Two types of policy are offered by PADROM: Type A (policy limit of RON 100,000 per dwelling /premium RON 130) and Type B (policy limit of RON 50,000 per dwelling/premium RON 50).

Coverage  type  depends  on  the  type  of  property,  with generally the properties of more basic construction being covered by Type B policies. Currently more than 90% of the policies in the portfolio are Type A policies. The coverage is on first loss basis and there is no deductible.

PADROM uses the insurance companies in Romania as its sales  and  distribution  network,  along  with  authorized insurance brokers and online direct acquisition. All insurers in Romania authorized to write catastrophe business but also the insurance brokers have direct access to PADROM’s underwriting system and directly enter details of the policies sold on a ‘live’ basis. The claims handling is performed by the insurance companies if the policy has been issued through them or by an outsourcing company contracted by PADROM if the policy has been issued directly by PADROM or by an insurance broker.

• PADROM Programme Summary