The Premium for Mandatory House Insurance in Romania – Considerations Regarding its Financial Solvability

Abstract The insurance premium can be considered an identity report between the needs of the insured and the insurer in the moment of the creation of the contractual bond and the premium resulted from the contract. This must reflect the degree of policy coverage; it must measure the financial possibilities of the insured and satisfy in equal measure the necessities of the insurer. A critical stage in the construction of the insurance product is represented by the determination of the insurance premium which balances the financial endurance of the program and the price accessibility of its price. The present paper focuses on the optimum level of the mandatory house insurance in Romania. This is based on the calculation model of the premium in an insurance pool, in an attempt to identify in what way the advantages of the house insurance outweigh its flaws.