Data published by HAIC (Hellenic Association of Insurance Companies) reveal that savers have turned their focus on Unit Linked programs rather than term deposits. According to the data, in 1Q 2012, premium production in the investment programs branch have increased by 79%, while the total production of the sector has been enhanced by EUR 68.2 million Y-o-Y, reaching a total of EUR 154.5 million.

This increased demand for investment products in spite the negative climate for savings that exists currently in Greece can be interpreted by the fact that depositors turn to this alternative type of investment which insurance companies promote as a safe solution should the country leave the Euro zone.

In fact, contracts on mutual foreign funds are issued by insurance subsidiaries of big insurance groups that operate in Greece. The reason behind these particular contracts is the custody that foreign countries provide assuring in this way the liquidation of funds in Euro.

Apparently the fate of these contracts in case that Greece will go back to Drachma cannot be guaranteed and this is the main fear of the investors. The mutual funds that are handled by foreign custodians, which Banking Groups promoted as an antidote to the liability crisis of the Greek market, share the same fate.

Investment programs sales have dominated in 2011 too, leading Unit linked products to a 30% growth, against the overall climate of insurance contract liquidation that led to the fall of Life insurances by 7.9%.