For four years insurance companies have been trying to create a disaster management pool but they are still divided on the subject of compulsory natural disasters insurance.

Current conditions press them to take urgent measures. In March several Bulgarian villages were flooded due to high subsoil water levels and unfinished re-construction of the facilities destroyed in last year's deluges.

Now the level of the Danube River is closely observed. Prevention measures include construction of a new stone wall fortifying the river bank that costs more than 593 euro, Banker newspaper reported.

The wall is the last in a series of facilities built as part of the sea and river bank protection programme financed by the European Investment Bank (EIB) with 15 million euro. The government provides another 14 million.

Even after last year's floods the number of property insurances is expected to rise by no more than two per cent, Association of Bulgarian Insurers president Daniela Konova said. Despite alarming signals of upcoming natural disasters, people still rely only on the country for loss coverage.

The establishment of a Balkan disaster management pool will be discussed between Greece, Bulgaria and Romania during a round table meeting in May. The project will be financed by the World Bank.

The Disaster Management Ministry plans to pass a new law and insurers hope their role in loss coverage will be clearly defined.

Yet, poor people cannot insure their property even if they want to, but they are the ones facing the highest risk in an eventual disaster.

On the other hand, if disaster insurance takes the form of an obligatory tax, people will be greatly dissatisfied. Such technical details are crucial for the effective administration of disaster management pool funds.