Greece Insurance Market Intelligence: 2011 Edition
The Greece economy went into recession in 2009 as a result of global financial crisis and its impact on access to credit, world trade, and domestic consumption. These developments had a lesser impact on the Greek insurance sector given their comparatively low share in the overall domestic financial system. Both life and non-life insurance premiums witnessed a rise in premiums in 2009. Much of the growth in non-life insurance in 2009 was accounted for an increase in motor vehicle liability insurance as well as in other lines such as general civil liability, credit, assistance and fire. On the contrary life insurance segment grew only marginally in 2009 since it was affected from low interest rate environment in 2008 and H109.
Insurance penetration remained low which can be improved by introducing new insurance products and implementing innovative distribution channels. Concentration in the insurance sector, based on the insurance premium turnover of the ten largest companies, remained at high levels in the year 2009, particularly in the life insurance sector. Ethiniki Hellenic dominated both life and non-life insurance market in 2009.
The Greek Ministry of Labour and Social Security, together with the Ministry of Health, has planned to create a unified health insurance fund in February 2010 which may further boost the demand for health insurance products. Innovative products such as directors' and officers' insurance, environmental liability cover, insurance for renewable energy projects are in high demand. In May 2010, the IMF, euro area members agreed a bailout package for Greece, in exchange for which Greece would implement a fiscal austerity package and economic reforms. This will certainly improve the country’s near and medium-term economic and financial prospects and positively affect the insurance market.
Insurance penetration remained low which can be improved by introducing new insurance products and implementing innovative distribution channels. Concentration in the insurance sector, based on the insurance premium turnover of the ten largest companies, remained at high levels in the year 2009, particularly in the life insurance sector. Ethiniki Hellenic dominated both life and non-life insurance market in 2009.
The Greek Ministry of Labour and Social Security, together with the Ministry of Health, has planned to create a unified health insurance fund in February 2010 which may further boost the demand for health insurance products. Innovative products such as directors' and officers' insurance, environmental liability cover, insurance for renewable energy projects are in high demand. In May 2010, the IMF, euro area members agreed a bailout package for Greece, in exchange for which Greece would implement a fiscal austerity package and economic reforms. This will certainly improve the country’s near and medium-term economic and financial prospects and positively affect the insurance market.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Consolidation activity continued till 2003 through increased M&A activities
1.1.2 Supervised by the Private Insurance Supervisory Committee (PISC)
1.1.3 Reduced Government Intervention and Restriction Policies through Reforms
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Margin growth in life insurance premiums due to low interest rate environment
1.2.1.2 Growth in non-life premiums was attributed by motor vehicle liability insurance
1.2.1.3 Withdrawal of authorization of five companies following their inability to meet solvency margin
1.2.2 Market Segments
1.2.2.1 Equal composition of both life and con-life insurance premiums in industry.
1.2.2.2 Demand for health insurance policies led to a growth in premiums
1.2.2.3 Sickness recorded largest increase in 2009 within the Non-life segment
1.2.2.4 Non-life insurance sector is dominated by motor vehicle liability that
1.2.3 Market Density & Penetration
1.2.3.1 Low levels of insurance penetration and density as compared to other European countries
1.2.3.2 Rising demand for new products such as directors' and officers' insurance, environmental liability covers
1.2.4 Market Share
1.2.4.1 Highly concentrated nature of life and non-life insurance markets
1.2.4.2 Ethiniki Hellinic dominated both life and non-life insurance markets
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Establishment of Single Health Insurance Fund
Bailout Package of Euro 110 Billion by IMF and Euro Nations
Five Greek Insurance Companies’ Licenses Suspended
Abolishment of Stamp Duty on Life and Damage Insurance
Agricultural Bank of Greece Increased Stake in Agrotiki Insurance
ING Sold Its General Insurance Business
Implementation of New Measures by Government of Greece
Metlife's Auvida Product Launched in Greek Market
Greek Insurance Fund for Self-Employed in Fund Crisis
German Banks and Insurers Provided Euro 8.1 Billion to Greece
2.2 Market Drivers
Motor Market
Demand for Health Insurance
Innovative Products Driving the Market
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slowdown in credit growth negatively affecting demand for insurance products
4.2 Activation of the joint EU/IMF financial support mechanism by Euro group might ameliorate uncertainty
1.1 Industry Structure
1.1.1 Consolidation activity continued till 2003 through increased M&A activities
1.1.2 Supervised by the Private Insurance Supervisory Committee (PISC)
1.1.3 Reduced Government Intervention and Restriction Policies through Reforms
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Margin growth in life insurance premiums due to low interest rate environment
1.2.1.2 Growth in non-life premiums was attributed by motor vehicle liability insurance
1.2.1.3 Withdrawal of authorization of five companies following their inability to meet solvency margin
1.2.2 Market Segments
1.2.2.1 Equal composition of both life and con-life insurance premiums in industry.
1.2.2.2 Demand for health insurance policies led to a growth in premiums
1.2.2.3 Sickness recorded largest increase in 2009 within the Non-life segment
1.2.2.4 Non-life insurance sector is dominated by motor vehicle liability that
1.2.3 Market Density & Penetration
1.2.3.1 Low levels of insurance penetration and density as compared to other European countries
1.2.3.2 Rising demand for new products such as directors' and officers' insurance, environmental liability covers
1.2.4 Market Share
1.2.4.1 Highly concentrated nature of life and non-life insurance markets
1.2.4.2 Ethiniki Hellinic dominated both life and non-life insurance markets
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Establishment of Single Health Insurance Fund
Bailout Package of Euro 110 Billion by IMF and Euro Nations
Five Greek Insurance Companies’ Licenses Suspended
Abolishment of Stamp Duty on Life and Damage Insurance
Agricultural Bank of Greece Increased Stake in Agrotiki Insurance
ING Sold Its General Insurance Business
Implementation of New Measures by Government of Greece
Metlife's Auvida Product Launched in Greek Market
Greek Insurance Fund for Self-Employed in Fund Crisis
German Banks and Insurers Provided Euro 8.1 Billion to Greece
2.2 Market Drivers
Motor Market
Demand for Health Insurance
Innovative Products Driving the Market
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slowdown in credit growth negatively affecting demand for insurance products
4.2 Activation of the joint EU/IMF financial support mechanism by Euro group might ameliorate uncertainty
LIST OF CHARTS:
Annual Premium – Greece Insurance Industry: 2002-2009
Greece: Gross Direct Premium Q110 Vs. Q109
Greece Insurance Premium Share (%) by Segment – 2009
Greece Insurance premium by segment – 2002-2009
Greece Life Insurance Premium Share (%) by Segment – 2009
Greece Non-Life Insurance Premium Share (%) by Segment – 2009
Greece Insurance Density (US$): 2002 – 2009
Greece Insurance Penetration: 2002 – 2009
Greece: Major Non-Life Insurer’s Market Share: (2009)
Greece: Major Life Insurer’s Market Share: (2009)
New Vehicles Registered in Greece: 2002 – 2009
Motor Third Party Liability Insurance Premiums 2002 – 2009
Health Insurance Premiums 2002 – 2009
Forecast: Greece Insurance Industry: 2009A - 2013F
Forecast: Greece Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Greece Insurance Industry: 2002-2009
Greece: Gross Direct Premium Q110 Vs. Q109
Greece Insurance Premium Share (%) by Segment – 2009
Greece Insurance premium by segment – 2002-2009
Greece Life Insurance Premium Share (%) by Segment – 2009
Greece Non-Life Insurance Premium Share (%) by Segment – 2009
Greece Insurance Density (US$): 2002 – 2009
Greece Insurance Penetration: 2002 – 2009
Greece: Major Non-Life Insurer’s Market Share: (2009)
Greece: Major Life Insurer’s Market Share: (2009)
New Vehicles Registered in Greece: 2002 – 2009
Motor Third Party Liability Insurance Premiums 2002 – 2009
Health Insurance Premiums 2002 – 2009
Forecast: Greece Insurance Industry: 2009A - 2013F
Forecast: Greece Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: (2009 – 2014F)
Key Macroeconomic Indicators: (2009 – 2014F)
