Greece premium, benefits and

claims paid in 2013

premium

2,653
Mln
Total benefits and
claims paid

1,681
Mln
Life
premium

1,754
Mln
Life
benefits
paid

4,012
Mln
Total

2,331
Mln
Non-Life
premium

1,489 Mln
Non-Life claims
paid

Insurance Penetration in Greece

Economy

Insurance Premium share to GDP

250,000.0

Total Greece gross

written premium
decreased by
9.02% compared
with 2012,
reaching 4.012
bn in 2013.
In 2013, insurance
penetration (gross
written premium
as a percentage of
GDP) diminished
slightly by 0.07
percentage points
in 2013 to 2.20%
compared with
2.27% the year

2.45%

237,431.0
226,210.0
2.40%
207,752.0

2.40%
194,204.0

200,000.0
2.36%

182,438.0 2.35%

2.30%

2.29%

150,000.0

2.27%
2.25%
100,000.0

2.20%

2.20%

2.15%
50,000.0
2.10%
5,448.1
-

2009

5,332.3

4,987.3

2010

4,410.0

2011
GWP

GDP

2012
%

4,012.4
2013

2.05%

Non-Life Insurance
Non-life premium by Business line-2013

The largest non-life insurance market,

motor insurance, totalled 1.438 bn in
premium (2013), followed by property
insurance with 518 Mln.

Credit; 1%

Other; 9%

Liability; 3%

Liability & PA market share stood at 3%

with premium 76 Mln & 61 Mln
respectively.

Property; 22%
Motor; 62%
PA & Healthcare; 3%

Other LOBs included Marine, Aviation

Transit.

Motor Insurance

Motor third-party liability (MTPL), compulsory in Greece, provides

financial protection against claims for physical damage and/or
bodily injury resulting from traffic collisions. The loss ratio, for
this cover, has increased from 47.1% in 2012 to 60% in 2013.
Additionally, comprehensive motor insurance offers financial
protection for first-party losses and, in some cases, fire, theft and
breakdown services. The loss ratio for this segment has increased
from 45.2% (2012) to 56.6% (2013).

54.50 claims paid

Average motor
per capita

130
Average motor premium per
capita

Property Insurance
Property insurance provides protection against risks to
property, such as fire, theft and some weather damage.
This insurance consists mainly industrial and
commercial risks.
Non-commercial lines (residential risks) are
underdeveloped as substantial proportion of Greek
homes are uninsured or underinsured.

47
Average property premium per capita

Market Players
The market is dominated by a handful of companies but
is otherwise highly fragmented, with many companies
having a market share of less than 1%.
A number of insurance companies are either owned by
or have close relationships with banks.
Distribution channels consist mainly of brokers and
insurance companies' agency networks

Challenges
Solvency II
Solvency II is a EU-wide regulatory regime.
This regulation has standardized the calculation of capital requirements/SCR.
SCR is the amount of funds that insurance undertakings are required to hold in
the European Union.
The amount of SCR Insurers need to hold will depend upon the risk of Reinsurer
defaulting.
The calculation of the capital requirement for this risk will take account of Credit
rating of Reinsurer. This rating would determine Reinsurers default probability.
Thus, a lower Reinsurer rating would increase the SCR of direct Insurer, which is
unfavorable for Cedent.
As Gic Re current rating is below A, this may prove to be a threat.