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Insurers avoid unemployment policies: risk has become a certainty

13.05.2010, 20:10 6

Employees cannot conclude individual unemployment policies atpresent, because insurers are no longer interested in this marketsegment, in the context where the risk insured against hasbasically become a certainty. Moreover, because several hundredthousand employees have lost their jobs since the beginning of thecrisis, unemployment insurance has become very expensive.

"Under the circumstances, the random factor is gone, andinsurance companies cannot come up with an affordable offer, thepremium should be very high. A rough calculation would put thepremium at around 20% of the insured sum. I doubt anyone would bewilling to pay this much," said Cristian Constantinescu, chairmanof the National Association of Insurance Companies in Romania(UNSAR) and former CEO of Allianz-Tiriac, the biggest company onthis market last year.

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