Catastrophic flooding could cause EUR 6 bln damage in Romania

Romania could withstand a loss of EUR 6 billion, of 4% of its GDP, if it were to face similar flooding to Bosnia and Serbia, said Nicoleta Radu Neacşu, the general manager of PAID Romania, the company which issues the mandatory house insurances. Such catastrophic flooding takes place once every 120 years, and the estimation was made by Willis Re insurance company, she added, quoted by Capital.ro. In case of an earthquake, the maximum damage PAID were to pay was of EUR 442 million, and for flooding, EUR 92 million. There were 1.5 million insurance policies signed with PAID end of August 2014, and a total of 8 million houses in the country. Major flooding in Eastern Serbia, near Romanian border, south – western Romania also affected Code Red for flooding extended across seven counties, various rivers in Romania