reinsurance

The earthquake in Japan could drive reinsurance costs up for Romanian companies, which in turn may increase their premiums for building insurance by 10-20% on the medium-term.

Most insurers on the Romanian market are not prepared financially for a new earthquake like the one in Bucharest in 1977, mainly because of the lack of reinsurance, said Cristian Constantinescu, president of the National Union of Romanian Insurance and Reinsurance Companies (UNSAR).