GREECE: Insurance market in the turmoil of dept crisis. 1H/2012 results

From the beginning of 2012, the state and expectations of the Greek insurance industry have remained shrouded in the big "cloud" represented by the country's financial crisis.

Let's recall the insurers, as key investors in Greek government bonds, will take part in the private sector involvement (PSI) that is ultimately negotiated between the government and its private sector creditors.

Through the PSI plan, most insurers - if not all - will now have access to the capital they need or can acquire it quite quickly from their major shareholders.

The harsh economic and financial environment caused a contraction of the insurance sector. Last year results show that premiums decreased by single-digit amounts in the first three quarters (compared to the same period of 2010).

The fall was slightly higher in the life segment than in the non-life segment. Taking this result into consideration, we can observe that, in spite of all the challenges, large numbers of households can still afford to pay for both non-life and life insurance and see them as an essential expenditure.

Therefore, in some cases, companies managed to slightly increase their premiums or suffered fewer claims; in others, profitability has been boosted by reducing operating costs.

The insurance sector made remarkable efforts to bounce back in this economic turmoil but, unfortunately, by the end of the first half of 2012, the financial results published by HAIC (the Hellenic Association of Insurance Companies) paint the Greek insurance market in rather dark colors.

In 1H/2012, the Greek insurance market managed to total EUR 2.25 billion, this meaning a 7.85% drop compared to the same period of 2011. The negative growth of only a single digit was mainly due to Unit linked products in the life segment, which kept the market alive, with a 49.91% increase (reaching EUR 222.57 million).

The non-life segment registered the biggest decrease by far: a 11.4% drop compared to 1H2011. The motor insurance segment registered a remarkable fall, going down by 15.8%, its major lines of Motor Hall and MTPL insurances decreasing by 22.81% and 3.81% respectively.

As far as life insurance is concerned, the results are now negative, but they are still controllable: a 2.81% drop and gross written premiums totalizing EUR 986.59 million in 1H2012. As we have previously stated, Unit Linked products prevented the insurance market from reaching into a worse situation, but the same cannot be said for other major life insurance segments, such as Annuities and supplementary insurance, which, in spite of maintaining a 26.19% market share, dropped by 10.71%.

Taking all this into account, while looking at the data that we currently have at hand, we can affirm with certainty that the PSI program has failed, creating substantial losses for the insurance companies activating on the Greek market. In this first half of 2012, we have seen the companies mainly focusing not on how to improve their services in order to bring better products to the costumers and reestablish a healthy insurance market, but on how they will manage to absorb these losses, either by capital increases or by separating themselves from the non-profitable sections and eventually sell the healthy part of the company (ATE ASFALISTIKI) in order to survive.

Acces www.xprimm.com and download 1H2012 Greece insurance market statistics.

Related articles

STATISTICS: UPDATE: Greece, FY2016: 4.6% y-o-y increase in the overall premium income

According to a recent press release of the Hellenic Association of Insurance Companies (HAIC), the Greek insurance market saw a 4.6% y-o-y increase in the overall premium income in 2016, to EUR 3.78 billion. The result takes into consideration the 56 insurance undertakings HAIC members, representing approximately 97.1% of total premium income.

2017-03-16

Greece, FY2016: 4.6% y-o-y increase in the overall premium income

According to a recent press release of the Hellenic Association of Insurance Companies (HAIC), the Greek insurance market saw a 4.6% y-o-y increase in the overall premium income in 2016, to EUR 3.78 billion. The result takes into consideration the 56 insurance undertakings HAIC members, representing approximately 97.1% of total premium income.

2017-03-09

ON THE MOVE

WTW appoints Patrick MURPHY as Global Head of Cargo & Specie

Willis Towers Watson (WTW) has appointed Patrick MURPHY as Global Head of Cargo and Specie, within its Marine, Corporate Risk and Broking Division. He will be responsible for client management, technical, placement and risk management specialists to support WTW marine clients in risk mitigation.

TOP EVENT

"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

22.11.2017

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

See all