Abstract. As economic losses caused by natural disasters substantially increase in volume, impacting national economies, post-disaster reconstruction financing becomes crucial, especially for countries with fragile economies. The growing gap between economic and insured losses calls for a pragmatic approach related to financial protection solutions. Romania is one of the few countries that adopted a solution to cut down this deficit of protection in the case of the residential system. This system considers reinsurance as a sustainable risk transfer method, meant to quickly and efficiently attract the funds required to rebuild the housing stock in the event of a disaster.

Keywords: reinsurance, risk transfer, mandatory insurance, natural catastrophe.