The Most Important Thing Is The Public Concord And The Insurance Companies Can Choose Whether To Join In The Initiative, Said Mr Venelin Uzunov, Chairman Of The Commission For State Policy For Disasters And Accidents. He Was A Participant In The INS expo&forum, Which Took Place, In Veloko Tarnovo In Media Partnership With INSURANCE.BG
Mr Uzunov, can you please explain the need of the organisation of a catastrophe pool in Bulgaria?
This is not an end in itself to be introduced by the governing cabinet, the parliament or the insurance companies. As we have announced at the present meeting (INS expo&forum, editor's note) we
have examined the situation in 12 developed European countries which have already organised a catastrophe pool covering against different natural disasters impacts-such as earthquakes, floods,
hurricanes, volcano eruptions (in Iceland)etc. depending on the geographical features. All we want to do is to forestall events of the kind as it happened in Istanbul few years ago, or the great
floods in Romania. As you know Bulgaria is situated in an earthquake hazard zone. We all witnessed what happened in Istanbul few years ago, what happened in Vrancha some 30 years ago and in
Macedonia, in the area of Skopie, more than 30 years ago. The Balkans are definitely a region of hazard. That is why we hate to take precautionary measures-the state and the private insurance
companies-so we can guarantee for the Bulgarian citizens in case of a devastating natural disaster.
The discussion of the forum is expected to gain more publicity . Is there at least an agreement on the risks the pool is to insure against?
Thank you for having perceived the matter in that way. We started the discussion but we expect it to expand and involve the media, the insurance companies, the public and the state-everyone
concerned. A law will be determining the dimensions of the catastrophe pool, if it will insure against earthquakes or floods. The catastrophe pool in Bulgaria will most probably cover against
earthquakes and floods since these are the disasters likely to stuck our country. There is a possibility, however, that the pool will include insurance against erosion, insurance of farm plants,
insurance against all occurrences that might impact the state budget balance.
Do you think that the state will insure the infrastructure?
The prime minister Mr Sergey Stanishev, personally committed to the matter and is definitely for the organisation of such a pool. What is more, last year at a governmental sitting in Euxinograde,
the premier said that the issue solution was undertaken. We are working but we really want to examine the experience of the neighbouring Turkey and Romania, so we will be able to do the best for
Bulgaria.
Will the state actually insure infrastructural projects?
I repeat, no final decisions made have been made and it is not in my power to make any decisions. There will be vast
public and parliamentary discussions. Whatever happens the state will be involved and participate. I see it all as a public-private partnership, as it is in most European countries. There are
countries where the liability is held by the state only, or the business only, but the most often case is the public-private co-operation.
You consider Romania as the most suitable example for us, in view of the similar geographical location and similar standard of living?
Our prior consideration is the purchasing capacity of the Bulgarian citizens. Having this in mind determines Romania as our closest example. We cannot compare our standard of living with the other
countries'. We will as well consult advisors and experts working with World Bank. But I think that the insurance premium amount will come to more or less the same figures.
As well the insurance average?
Yes.
Are there any confrontation of opinion between the state and the insurance companies?
There is no confrontation, there is a dialogue. As you see there are insurance companies present at the forum. No one is compelling the insurers to participate, they act of their own volition as it
is a free market. The more important thing is the public concord.
What are your expectations will there be numerous bills prepared by the team of experts, or they will all consolidate in a single motion to be carried by the end of the
year?
We decided to organise a team of experts which will work with the experts at the National Assembly-working for World Bank, the Ministry of Finance, the Ministry of Economy-and
together with the insurance companies they are expected to prepare one, two or three suggestions. Then, in the beginning of autumn, there will be a national round table discussion where the
syndicates, employers, the governing cabinet and World Bank. Al parties involved will discuss and come to the best decision.
When will that happen in terms of time?
We hope that we will have billed in by the end of the year.
