With the total GWP reaching EUR 4.3 billion and a 10.71% drop in comparison with the previous year, one can say that the market is in serious trouble also for 2013. The total non-life gross written premiums reached EUR 2.37 billion. From EUR 2.69 billion in 2011 the fall stopped at 11.76%.
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 Association of Insurance Companies in Greece wants to evaluate the impact of repurchasing Greek state bonds in order to create the conditions which will minimize losses.
The situation regarding the intentions of the Government to tax the premiums paid by an employer to an employee under a collective pension-saving plan as income remains uncertain.
Following the merger planned between the National Bank of Greece and
Eurobank groups, the linkup of their insurance activities will lead to
the creation of a domestic insurance giant with premiums of over 1.1
billion euros out of a total of 4.9 billion euros in the local market.
The insurance sector has stopped investing in state bonds since
incurring huge losses as a result of the private sector involvement
(PSI) in the Greek debt swap earlier this year.
Greece is characterized by its high seismic exposure. It is estimated
that the economic loss to the residential stock of a 1-in-200 year event
is likely to be greater than 22 billion Euros while for a shorter
return period 1-in-5 year it is likely to be 1.3 billion Euros.
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.
Car owners in Greece will have to pay penalties for their vehicles by the beginning of autumn if they don't acquire an insurance policy. Fines will start from 250 up to EUR 1,000 depending on vehicles year of manufacture and engine volume. In case of non-payment, owners will be given an even higher fine and withdrawal of their license and plate numbers.
Mandatory civil liability insurance for all vessels that enter Greek ports remains on paper, as the implementation for the legislation imposed by relevant EU directive that was incorporated into Greek law in 2012 is yet to become active. The delay in enforcing the law is keeping Greek insurers away from a potential premium volume of EUR 100 million.
Insurance companies are less exposed than banks to contagion risk triggered by a Greek exit from the eurozone, because of insurers' ability to share losses with policyholders and their lower reliance on short-term funding. However, banks' resilience is enhanced by benefiting from any potential EU policy response and European Central Bank action.
Stress tests to insurance companies will be commencing normally this year also, in spite the transition period that was given to the companies in order to recover from their great losses over PSI+. These tests will determine the limits of the insurance market against plausible negative developments in capital markets, but also to disastrous or adverse insurance events.
Profits before taxes of the According Greek branch of HDI-GERLING for the fiscal year of 2011, reached EUR 6.2 mil, increasing y-o-y by 27% (EUR 4.9 mil in 2010). After tax profits closed at EUR 5 mil from EUR 3.8 mil in 2010. The results are in line with HDI-Gerling Hellas' goal of continuing its successful course against a harsh economic environment, remaining between the most profitable insurance companies in Greece for the last years.
Total premium production of the Greek insurance market for the 1Q 2012 appears to be reduced by 5%, but on the other hand in the Life associated with investments insurance branch premium production has increased by a staggering 79%, according with the research conducted by HAIC (Hellenic Association of Insurance Companies).
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.
Absolute leaders of the top 10 positions in the life sector insurances
prove to be the multinational companies and bank subsidiaries
controlling over 91% of the market according to data for 2011. The first
five companies in premium production control 68.8% of the yearly income
of the sector. However, the same data show that, compared to 2010, the top five
companies in revenue lost some 2% of their total share, which was 70.7%,
while the share of the first 10 appears enhanced from 90.6% in 2010 to
91.7% in 2011.
ETHNIKI Asfalistiki group has shown an amazing improvement regarding operational profits during the fiscal year of 2011 against great unfavorable circumstances, a fact that maintains the company in its leader role with a notable distance from the companies' competitors in the industry.
ASPIS Group of Companies former CEO Pavlos Psomiadis has been sentenced to 8 years of imprisonment after providing ASPIS's creditors with a false EUR 550 million letter of guarantee from a British bank in order to keep the defunct business afloat. Deadline until the 4th of May was given by the NGB (National Bank of Greece) for the companies that are interested to take part or in total of Aspis portfolio which at the moment is being fund by the public auxiliary fund.
EUROBANK PROPERTIES manages one of the most important portfolios of commercial properties in Greece and Eastern Europe. Maintains long-term leases with companies and it is managed by competent and experienced staff with knowledge of Greek and international real estate market. The company operates in the fast emerging sector of investment in property that is governed by a favorable tax regime.
Unexploited room for private insurance is the cover of agricultural activity in Greece which, in spite of the downward trend that the sector suffers due to recession and structural problems, continues to have a great importance for the Greek economy and development. Motive for insurance industry will constitute the 3877 Law that allows optional funded insurance for the agricultural sector. Although, the ministries decision to define the appropriate regulatory plan is still pending. It was "expected" to be declared after the 6th May elections, unfortunately no government has been declared so far, therefore the matter is still on hold . The Greek Agricultural Insurance Association and private insurance will be in competition because the Association also will have the right to provide farmers optional insurance programs.