Insurance pool PAID selects Moody’s to help model and manage earthquake risk in Romania

Pool-ul de Asigurare împotriva Dezastrelor Naturale (PAID), an insurance pool against natural disasters established in Romania in 2009, has chosen Moody’s to help the company model and manage earthquake risk in Romania.

PAID is an insurance organisation that consists of twelve insurers 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.

According to the announcement, Moody’s Analytical Services team will work with PAID by using Moody’s RMS Romania Earthquake Model to unlock location level earthquake risk analytics with probabilistic catastrophic modeling.

Moreover, the partnership also includes cooperation between the two firms in sharing claims data in order to help with the ongoing development of Moody’s RMS Europe Earthquake HD Model.

“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,” commented Laura Barksby, Product Manager within the global earthquake product management team, Moody’s RMS.

“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.”

“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,” said Ionut Baciu, Deputy General Manager at PAID.

“Working with Moody’s provides PAID with world-renowned, respected risk analytics that demonstrates our commitment to superior risk management practices.”

It’s encouraging to see Moody’s RMS collaborating with PAID in order to help the company achieve its goals concerning earthquake risk. The firm’s wide selection of risk management models, analytics and software is likely to help PAID expand its reach even further across Romania.

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