Although positive steps have been recorded from 2023 to the present day both in terms of policy incentives and in terms of an increase in insured properties, the country remains largely exposed to the effects of extreme natural phenomena. Erricos Moatsos, chairman of the Property Committee at EAEE and CEO of ERGO, stated that from 2023 to date, insured homes have increased by approximately 30% and reached 1.3 million insured properties, while approximately 5,000 additional businesses have been insured, however the gap between the total and insured risk remains large. An example of good practice mentioned regarding coverage is Switzerland, where 5% remains uninsured.
The same problem exists in the business sector, with 90% of small and medium-sized enterprises uninsured against natural disasters, according to the CEO of Hydrogeion, Pavlos Kaskarelis. “Of the approximately 800,000 businesses that make up 95% of the Greek market, 9 out of 10 are uninsured against the risks of natural disasters”, he said.
The President of the Association of Insurance Companies of Greece, Alexandros Sarrigeorgiou highlighted the impressive course of the Greek economy, which from being the “black sheep” of Europe has transformed into a leading force with an expected growth of 2.4% this year, the second highest in Europe. Despite the country’s fiscal responsibility, the insurance sector is faced with an intractable paradox, the protection gap in Greece is four times larger than the European average. "We are an industry that exceeded EUR 6 billion in production, paid EUR 3.7 billion in compensation and is the largest institutional investor with EUR 18 billion in mutual funds", he noted. However, the lack of insurance awareness, often fueled by long-standing political promises, leaves citizens exposed.
The President of the Association placed an emphasis on natural disasters. Earthquakes remain the number one risk for Greece, with only 18-19% of homes insured, compared to 70-80% in other European countries. In the health sector, Greeks pay twice as much out of pocket as the European average, as they rely exclusively on the state. The insurance market already pays EUR 1 billion annually for health services, facing medical inflation of around EUR 150 million more than last year.
The pension system he described as the "silent killer" of Europe due to demographic aging. Greece is at the base of the pyramid, without funded schemes, with young people not saving unless there are serious tax incentives. “Cooperation between the state and the insurance market is the only way to protect society and the economy", Alexandros Sarrigeorgiou added.
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