The insurance gap in Greece is four times greater than the average in Europe. To close this gap, greater collaboration between the public and private sectors is essential, stated Alexander Sarrigeorgiou, Chairman of the Board of Directors of the Hellenic Association of Insurance, during his speech at the 25th International Insurance and Reinsurance Conference in Hydra. He urged the government to implement measures that would further support private insurance.
On the topic of the European market, he highlighted that compared to the US, it is particularly costly and complex regarding procedures. He described the European insurance market as “over-regulated” and indicated that the current environment poses challenges for the growth of the insurance sector.
Sarrigeorgiou emphasized that as geopolitical tensions and global uncertainties continue to rise, the world economy faces significant threats from wars, climate change, demographics, and rapid technological advancements.
While the Greek economy is thriving and evolving dynamically, private insurance still has considerable ground to cover, according to the Association’s president, who outlined four key areas of focus for enhancing the sector’s integration into society.
Firstly, in health insurance, technological advancements are extending life expectancy but also driving up the costs of servicing policies, pushing insurers to increase premiums. To meet government expectations this year, the insurance market has restrained premium hikes, incurring financial strain. Nonetheless, he anticipates fair resolution between both markets aimed at fostering competition among private hospitals and implementing Diagnosis-Related Groups (DRGs).
Secondly, the government needs to revisit its tax policies regarding private insurance. A crucial step would be the removal of the 15% tax on health insurance premiums, a burden unique to Greece.
Thirdly, collaboration between the market and government is required to encourage savings in Greece and combat the financial and insurance illiteracy prevalent among citizens.
Lastly, ongoing technological advancements, particularly the rise of artificial intelligence, compel insurance companies to invest in both infrastructure and human resources to adapt to new technologies and better meet the needs of policyholders.
