In 3Q/2012, the Greek insurance market managed to total EUR 3.22 billion, which means a 9.8% drop compared with the same period of 2011.

The non-life segment registered yet another negative record, decreasing by 12% as compared with 3Q/2011. The motor insurance segment - with a market share of 34.8% - managed to total EUR 1.12 billion in GWP, going down by 15.6%. Its major lines, Motor Hull and MTPL insurance, went down by 23% and 13.8%, respectively.

Life insurance stopped the decrease at approximately EUR 1.41 billion from EUR 1.51 billion for the period of 9 months in 2011 which can also be translated as a -6.8% decrease. Unit-Linked products still enjoy positive results by gaining a respectable 19% growth in GWP, up to EUR 319 million over EUR 268 million in 3Q/2011.

The constant need for bailouts and reforms that Greece undertakes currently will leave a huge scar in the Greek insurance market for the year 2012. As the industry suffers at the moment, this overwhelming 9.8% drop in premiums written by the third quarter of 2012 returns the insurance industry to the 2006 figures.

The drastic reduction in household budgets following the cuts decided by the government on salaries and pensions in the public sector, the zero salary increases in the private sector as well as the unemployment, together with the low insurance awareness of the Greek consumers, mean that growth rates are likely to be curbed for the insurance market over the medium term. Many small Greek insurance companies are having liquidity issues. In line with Solvency II, many companies will have to undertake mergers or acquisitions in order to remain in business.

Access www.xprimm.com and download 3Q2012 Greece insurance market statistics.