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KOSTIS HATZIDAKIS AT NEXT DEAL Private insurance is a

MILTIADIS GKOUZOURIS CEO HVA Insights on insurance reforms gleaned by HVA during its Thessaly Post- Disaster Study

With two exclussivities

International Insurance and Reinsurance Conferences were propitiously conducted in the island of Hydra and Nextdeal was always present with the special edition (Greek, English) having the belief that the Greek Market deserves international visibility and can play an active role in the development of the Insurance Market in Southeast Europe in general.

Nextdeal, in this edition has two exclusives. Strongly believing in extroversion, we present for the first time a brief overview of the insurance companies of our neighboring countries. What we mention, which are part of the official texts of either the supervisory bodies or the associations of insurance companies of each country, prove the enormous scope for development that the whole of Southeast Europe has, scopes that are opportunities for both the Greek and the European insurance Market. It is absolutely certain that in the coming years the South-Eastern European Market will be a field of competition for Europe's major insurance groups and that this may also involve the Greek insurance Market, which is also going through a period of profound changes, as can be seen from the latest acquisitions but also sweeping changes at a leadership level.

Lampros Karageorgos

Editor in chief

The Hydra Conference will also discuss the important issue highlighted by the Greek and European Insurance Market, the so-called “insurance gap” that is growing as the climate crisis deepens. Covering the “insurance gap: takes on an urgent character after the disastrous consequences of “Daniel” in Thessaly.

The second exclusivity is the article written by the Greek CEO of the Dutch company HVA, Mr. Miltiadis Gouzouris, who conveys to us first-hand his experience of what he encountered in the affected areas of Thessaly and proposes specific measures in order to insure residents and businesses, among which to reduce the limit of businesses that will be compulsorily insured. “The turnover limit today (for insurance compulsory by law) is very high and includes only a small percentage of the businesses in the region. In Thessaly, the majority of businesses have small turnovers. Since even a business with a turnover of three hundred thousand per year can employ a lot workers we considered it important and proposed to the competent minister the compulsory by law insurance for these small businesses", says Mr. Gouzouris.

At the same time, the special edition of Nextdeal includes an overview of the Greek Insurance Market and other interesting articles as well as the opinions of the country's largest companies.

Enjoy your reading!

Kostis Hatzidakis Minister of Economy and Finance

PRIVATE INSURANCE

A vital pillar of the economy

he New Democracy and Kyriakos Mitsotakis governments have consistently championed the first two pillars of the insurance system. However, we also support the right to private insurance not only because it is a European policy. But also because it is a vital pillar of our economy.

A recent study by the Hellenic Association of Insurance Companies of Greece revealed that insurance premium production, following a positive trajectory in recent years, surpassed 5.2 billion euros in 2023, marking an 8.9% increase from 2022. The sector's contribution to GDP and employment is equally significant. A Foundation for Economic & Industrial Research (IOBE) study found that the industry contributed 2.5 billion euros to GDP in 2022, accounting for 1.2% of GDP, and employed nearly

All these are undoubtedly very positive elements. An honest assessment of the situation,

however, must also consider that the Greek market remains underinsured compared to other European countries. It is a reality that acquires additional importance given contemporary challenges such as the sustainability of social security systems and the increase in the phenomena of natural disasters. In this context, I would like to recall three related government initiatives: First, the government reduced the Unified Property Tax by 10% for houses insured against natural disasters. Second, the Prime Minister announced compulsory insurance against natural disasters for medium and large enterprises. Thirdly, in the relevant draft law that we submitted to public consultation, the new system of checks and penalties for uninsured vehicles seeks to address an existing social and economic problem.

The private insurance industry is experiencing dynamic growth, but there is still ample room for expansion. Recognizing its pivotal role, the government has fostered a strong partnership with insurance companies. We are committed to continuing this collaboration, with the aim of further developing the sector for the mutual benefit of the insurance companies, their employees, and the economy as a whole!

Ready for Paris 2024

Christina Papaconstantinou Deputy Governor of the Bank of Greece

“The role of the private insurance industry in covering natural disaster risks”

In 2023, the domestic private insurance industry remained robust, supported by the satisfactory performance of the Greek economy. The insurance companies that operate in Greece continued to demonstrate high capital adequacy, well above the regulatory requirements. In addition, they have well-diversified asset portfolios, which mainly include fixed-income securities. More specifically, their total assets in 2023 amounted to EUR 20.3 billion, a significant part of which consisted of high-rated government and corporate bonds.

The expertise of the domestic insurance industry was instrumental in smoothly tackling the consequences of last year’s natural disasters. It is worth noting that insurance companies responded very quickly to Storm Daniel, covering more than EUR 300 million in claims. Reinsurance also played a very important role as a risk mitigation tool, since the assigned part of the above claims exceeded 75%.

Private insurance can play an important role in mitigating the negative effects of natural disasters across the economy. Τhe Bank of Greece stands ready to support all state efforts to develop a comprehensive strategy, in terms of both supply and demand, for the insurance coverage of natural disasters

Due to its location and geography, Greece faces a higher risk of natural disasters compared with most of the other EU countries. Moreover, exposure to natural disasters is increasing over time, as a consequence of climate change. Against this backdrop, the Greek insurance industry has the financial capacity and the know-how to provide the necessary insurance coverage.

Nevertheless, insurance penetration in Greece is very low. As suggested by historical data, Greece has a significant insurance gap in terms of earthquake and fire risks and a less significant, yet critical, insurance gap in terms of flood and windstorm risks. Indicatively, from 1990 to 2019, only 8% of total losses realised during those years were insured. More specifically, only 9% of losses from fires, 4% from windstorms and 8% from floods and earthquakes were insured.

Extreme natural events have adverse effects on the economy. The direct cost is associated with restoring the damages brought about by natural disasters; given the significant insurance coverage gap in Greece, this cost is mostly borne by the state. Indicatively, in the years 2020 and 2021, the average annual amount for damage restoration allocated by the state was more than EUR 1 billion. This represents about 40% of the annual total revenue from the Unified Property Ownership Tax (ENFIA). There is also an indirect cost, related to the macroeconomic impact due to the disruption of economic activity. Natural disasters can have negative effects on output and inflation, with potential persistent impact, depending on the severity of the disruption and the speed of subsequent economic recovery.

Consumers in Greece are not sufficiently aware of the benefits of insurance, risk levels, the actual price of home insurance and the reliability of insurance companies. According to survey-based evidence, the percentage of the population without any insurance experience in Greece is one of the highest in the EU. Moreover, 57% of Greeks who have home insurance have not bought it on their own initiative but only as a precondition for their mortgage. Greek citizens tend to have a lower perception of the risk associated with natural disasters and seem to prefer small short-term benefits rather than pay for future protection, while, at the same time, they perceive the process of purchasing insurance as quite difficult. In addition, lack of trust in insurance companies is among the highest in the EU, as over 30% of Greek citizens are not willing to buy insurance coverage because they do not trust that insurance companies will honour their obligations. Also, for more than 50% of people who stopped their insurance coverage, the reasons were either that the premiums were too high or that they could no longer afford the premium. These factors weigh negatively on the overall insurance coverage uptake in Greece.

Private insurance can play an important role in mitigating the negative effects of natural disasters across the economy. Τhe Bank of Greece stands ready to support all state efforts to develop a comprehensive strategy, in terms of both supply and demand, for the insurance coverage of natural disasters.

Alexander Sarrigeorgiou

The insurance protection gap is one of the biggest challenges for the insurance market

The insurance protection gap is one of the most important issues that concerns modern States and the insurance market as well. It is a global issue, but especially in Greece the problem is quite severe.

All Greeks, individuals, families and companies as well, are insured at 1/3 to 1/4 of the European average, while risks are growing exponentially.

The insurance gap exists in all areas where people need protection, such as health, pensions and natural disasters.

Let’s see in more in detail:

Only 15% of homes are insured against natural disasters. As for companies, it is estimated that only 200.000 out of 500.000 employees are insured (with at least one employee), amounting the above percentage to 40%.

Meanwhile, catastrophic events are more frequent and severe. It is obvious that climate change is here and there is no exception for Greece. In 2023 3 events of rainfall – floods and 2 forest fires of particular intensity were recorded, including the "Daniel" Storm. For those events, over 9.000 of losses were reported to insurance companies, with total claims approaching €440 m.

For "Daniel" in particular, we are talking about the largest number of claims in a catastrophic event since 1993, according to data that has been collected by HAIC until today, with the amount of claims estimated to exceed €370 m.

The cost of losses, which is not covered by the insurance market, is borne to a large extent by the State and its citizens and this is something we must address immediately.

We must definitely acknowledge the fact that the Government has taken steps towards this area. This year, for the first time, the Greek property tax, ENFIA has been reduced for homes insured against natural disasters. According to the President of the Independent Authority for Public Revenue (AADE in Greek), 280.000-290.000 homes took advantage of this incentive. As there is an interest in insurance, more people should be encouraged to make use of this measure. It is important for the State itself to raise awareness, promote and possibly increase the provided incentive.

Finally, on the same subject, regarding the

In summary, the protection gap means that the uninsured Greek pays more out of his own pocket, always in relation to his income. And this affects more strongly the financially weak, who does not have the funds to cope with a severe loss. As opposed to those who have money, who even when they are self-insured, have the resources to respond

Prime Minister's announcement on mandatory insurance for companies against natural disasters, we think it is extremely important for this measure to include smaller companies, i.e. with a turnover of €1 mil or even €500.000.

The second area where a significant protection gap is recorded is pensions.

Here, the protection gap is significant, as well, especially if a comparison is made with developed European states. A typical example according to figures provided by the Organization for Economic Co-operation and Development -OECD is that a 65-year-old Dane who is retiring, has set aside an amount equivalent to 28 months' savings. The Greek on the other hand has set aside savings, that is his own money under his name, of just 5 days. The average, according to the OECD is 8 months, meaning that the average citizen has 8 months of savings aside, while the Greek has 5 days.

Taking into account the ageing of the population with the old-age dependency ratio in Greece soaring up, as by 2060 1.48 adults of working age 20-64 will account for one elderly person aged 65 and over, and the projected reduction in pension expenditure from 15% of GDP to 12% of GDP, there is a significant need for measures to further encourage retirement savings. The recent law on the reform on occupational insurance succeeded in removing tax differences between the Occupational Pension Funds and group pension schemes, which operated to the detriment of insureds of insurance companies. However,

the country's pension gap requires more measures in the overall structure of the country's pension system, following the three-pillar model. In the health sector in 2021, Greeks spent a total of €16.7 bn on health. €10.5 bn paid for by the State, just €700 m for private insurance, as there are few people insured. Greek citizens paid €5.5 bn, out of their own pocket. This is double the amount the average European pays out of his own purse, because in Europe there are many more people who have private insurance. This whole system, therefore, is neither efficient nor fair. Greeks pay for health, twice, through their insurance contributions and taxes, or three times, if they also have private insurance. The changes required in the health system are fundamental and include certainly private insurance.

In summary, the protection gap means that the uninsured Greek pays more out of his own pocket, always in relation to his income. And this affects more strongly the financially weak, who does not have the funds to cope with a severe loss. As opposed to those who have money, who even when they are self-insured, have the resources to respond.

Both the State and the insurance market have a responsibility towards Greek society in terms of an effective protection of Greek citizens. We need to rethink as a society a potential public-social and private insurance partnership and make sure that the uninsured, who are dangerously many in this country, are reduced. And we must do so without further delay.

Who is Miltiadis Gkouzouris

Miltiadis Gkouzouris CEO, HVA International BV Est. 1879, Netherlands. Currently serving as the CEO of HVA International, a Dutch agricultural project development and asset management company, Miltiadis has an extensive background in finance, cost engineering and project management.

Originally hailing from Greece, Miltiadis chose to relocate to the Netherlands in his youth to pursue his academic studies and where he still resides.

During his career, Miltiadis has served as consultant on a number of large-scale infrastructural projects, which has taken him to more than 145 countries worldwide. Having led numerous negotiations on trade credit insurance contracts as C.O.O. of International Advisers, Miltiadis struck off on his own and founded Costwise in 2008, which he sold in 2018.

Miltiadis has also served in the public sector, as special advisor to the President and CEO of the Athens Urban Transport Organization, which was successfully remodeled. He has also served as advisor to the Greek Minister of Agriculture and helped initiate and establish the business incubator Orange Grove where he still helps mentor startups in his spare time.

Miltiadis is a fervent champion of sustainable development and actively promotes the establishment of SDG Houses around the world, currently serving on the board of the world’s first SDG House in Amsterdam.

Insights on insurance reforms gleaned by HVA during its Thessaly PostDisaster Study

By MILTIADIS GKOUZOURIS CEO HVA

When HVA conducted its work on the Master Plan for flood and water management in Thessaly pursuant to the devastating Medicane Daniel, significant issues came to light concerning the understanding of insurance. It was discovered that many affected individuals expected the state to bear full responsibility for compensation.

The prevailing mentality was that the government should compensate everyone affected by floods, including households for damage to their personal effects and property; businessmen for equipment losses, and farmers for crop damage. In contrast, normal insurance operates on the principle that premium payments create the expectation of compensation. HVA found it challenging to understand the rationale behind the expectation of state compensation, even when considering tax payments by citizens. Taxes fund the regular budget, whereas compensation for extraordinary and unpredictable events should not be assumed to come from the state.

Despite this, the state often assumes the role of providing compensation without prior provisions for funds or infrastructure. This approach is problematic due to several factors: the difficulty of covering the required compensation sums, verifying the legitimacy of declared damages, and the efficiency with which these issues are managed by various services.

The Greek government’s

Master plan water management in thessaly in the wake of storm daniel

This Master Plan seeks to address the intertwined challenges of water inundation and water scarcity by addressing all major facets that will help Thessaly “Build Back Better”. The plan is divided into six volumes and outlines the measures needed to fortify Thessaly’s water security, flood preparedness and reform of its agricultural sector. The Master Plan addresses both the immediate, no-regret measures that need to be undertaken to help protect Thessaly from future floods and remedy the water scarcity crisis, as well as long-term infrastructural remedies, changes to agricultural practices, and how to effect changes to the psychosociological mindset of Thessalian farmers.

swift and effectual response to the crisis was unprecedented given the scale of damage, thanks in part to the country’s recent good economic situation that helped cover losses, even for cases typically ineligible for compensation, such as payments to uninsured farmers through ELGA.

Based on the findings of our study, we proposed several measures to the government to improve insurance practices. One key recommendation was the compulsory insurance of businesses with low turnovers. Currently, the high turnover threshold for mandatory insurance includes only a small percentage of businesses in Thessaly, where most have smaller turnovers. HVA therefore suggested to the relevant minister to lower this limit so that insur-

ance is compulsory even for small businesses, as even those with an annual turnover of 300.000 euros often employ many workers. Increasing the insurance base through compulsory insurance offers several advantages. It can reduce insurance costs thanks to a larger number of policies and relieve the state from providing compensation, which public services find challenging to manage. For instance, estimating household effects’ value is impractical for the state, leading to generic compensation amounts that often fall short. During our fieldwork, flood victims frequently expressed dissatisfaction with the state’s compensation amounts, which they felt were barely sufficient to even paint the walls.

If all victims had insurance, they could receive adequate compensation, allowing public services to focus on managing the insurance framework and regulating insurance companies. A shift in the insurance mentality is crucial and feasible, especially after a major crisis. Today, all stakeholders, including insurance companies, ministries, farmers' associations, and businesses, seem ready to implement necessary changes to reform the insurance landscape.

This unique opportunity should not be wasted. With proactive leadership and appropriate actions, the insurance sector could undergo significant transformation within two to three years, potentially becoming a case study that will be used in universities.

TInterasco (261,70%) μιας εταιρείας που δεν περιλαμβάνεται στις δέκα πρώτες της αγοράς, η οποία όμως καταγράφει τη μεγαλύτερη ποσοστιαία άνοδο της 15ετίας μεταξύ όλων των ασφαλιστικών

PREMIUM PRODUCTION OF JOINT STOCK INSURANCE COMPANIES IN GREECE:*

By LAMBROS KARAGEORGOS

In 2009, the premium production of the Greek Insurance Market reached 5.4 billion Euros, the highest level in the history of the market. In the following years, due to the financial crisis and the shrinking of the economy, the insurance market “went south”. After a slow recovery, that started in 2016, it finally approached the 2009 record in 2023, as premium production reached 5.265 billion Euros, with the Life sector surpassing the 2009 record (2.509 billion Euros) and reaching 2.564 billion Euros, and the Damages sector to fall short by around 200 million Euros, as it reached 2.701 billion Euros in 2023 compared to 2.939 billion Euros in 2009.

company in our country and are supervised by the Bank of Greece, compared to 2022 and 2009.

From the citation of the available data, it follows that, in terms of production, the big winners are the insurance companies that, in addition to their organic growth, also made some large acquisitions. Generali Hellas is a typical example, as it achieved the largest increase in production (244,92%) among the large companies over the period 2009-2023 and the second largest in the whole market. Acquiring AXA Insurance three years ago, from the 8th place in 2009 it now stands in 4th place among the country's largest insurance companies, justifying the group's strategy that aims to place the company in one of the first five leading positions in any local market it is activating. Even after the acquisition, Generali managed to continue to move upwards in terms of premium production, turning “one plus one” to a little more than “two”...

• The comparison with 2009 and 2022

• Who won, who lost

• What was the effect of the acquisitions?

• The 2023 solvency ratios

* Results are aggregated at group lever, based on the 2023 Solvency Report and the 2009 Fiscal Year Repo

REVEALING TABLES ONLY AT “NEXTDEAL”

The companies' premium production for 2023

2009 is a reference year for the Greek Insurance Market and everything shows that 2024, barring the unexpected, will be the year that will surpass 2009 in terms of performance, since the Greek economy has entered into a growth path. However, it took 15 years for the market to fully recover.

During these 15 years, a lot has changed in the industry, both at an institutional level (Solvency II regime) as well as at a business level. Apart from the “shutdowns” of the Aspis Group and later of the International Group, what hall marked the market, were the big ac quisitions of the previous three years. “Next Deal” presents below the 2023 production results of the insurance companies that operate under the status of a joint stock

NN Hellas was also a big winner, which after the acquisition of Metlife, found itself in the 1st place in the Greek insurance market, activating in fact only in the Life sector, unlike the other insurance companies that operate in both sectors. NN Hellas, from 2009 to 2023, recorded a production increase of 186,51%, achieving the second best performance among major insurance companies.

Both the other two major insurance companies involved in acquisitions, Allianz and Ergo,

proved to be winners as well. Allianz, with the acquisition of European Credit, increased its 2023 production by 101,26% and earned "points" in the competition, while Ergo, which had acquired ATE Insurance, recorded a production increase of 178,90% compared to 2009.

Finally, comparing the production of 2023 with that of 2009, we can also note the significant production increase of Interasco (261,70%), a company that is not included in the top ten of the market, however it records the largest increase percentage during this 15 years period, among all of insurance companies.

The performance of the Eurolife Group (87,07%) during the period 2009-2023, through organic growth exclusively, is also noteworthy.

Concluding, comparing the production results of 2023 compared to 2022, it is worth noting the very large increase (47,27%) in the production of Alpha Life, the subsidiary of Alpha Bank, as well as the satisfactory performance of “Ethniki” Insurance (11,95%), Groupama (19,37%), Dynamis (17.60%), Atlantiki (14,43%) etc.

The Insurance Companies

“Map” in the last decade

An increase by 4,083 billion Euros is registered in the assets of insurance companies during the last decade (20132023), which reached 20,288 billion Euros at the end of 2023, compared to 16,205 billion at the end of 2013, while at the end of 2021 it was also at the level of 20,607 billion Euros (table 1).

At the same time, the equity capitals of the industry’s companies increased by 553 million Euros and reached 3,351 billion Euros, from 2,798 billion in 2013 (table 2). Compared to the low level of 878 million Euros in 2011, equity capitals have increased significantly by 2,473 billion Euros,

In 2023, the production of insurance premiums reached 5,2 billion Euros, the highest amount of the last decade, recording an increase of 8,9% compared to the previous year.

2023 was a good year for the Greek insurance market. It continued its upward course, registering a satisfactory increase of almost 9%, more than twice the inflation (3,5% at an average level). It is the first year after 2010 and the financial crisis that followed, that the sector's production exceeds the limit of 5 billion Euros. It is clear that the citizens, realizing the risks they run and the need to strengthen their protection, turn towards Private Insurance for the coverage of what they consider valuable, with an emphasis on health and real estate.

In the period from 2014 to 2018, the Insurance Market was tested by the problems of the wider economy and saw the insurance production to decrease below 4 billion Euros. From 2018 onwards, the Insurance Market entered on a new upward track which was “slowed down” in 2020 (3,9 billion Euros) due to the pandemic and the concomitant problems, to return in an upward course in 2021 and 2022, while in 2023 reached the highest levels of the last decade (table 3).

The Investments

As far as the investments of insurance companies are concerned, during this decade, it should be noted that the value of the total investments of insurance companies in

bonds, mutual funds and shares increased, while deposits and fixed assets decreased.

More specifically:

• DEPOSITS: Deposits are recording a decrease by 2,590 billion Euros, to 1,220 billion Euros from 3,547 billion in 2013, which was the highest level of the last decade (table 4).

• BONDS: The value of total placements in bonds recorded an increase of 3,844 billion Euros, to 10,557 billion Euros from 6,713 billion in 2013, while they had reached 12,555 billion in 2020 (table 5).

• MUTUAL FUNDS: Investments in mutual funds increased by 3,134 billion Euros, to 5,398 billion Euros compared to 2,264 billion at the end of 2013 (table 6).

• SHARES: The value of investments in shares increased by 516 million Euros in the period under review, with the largest amount invested in shares in 2023, at 881 million Euros, compared to 365 million Euros in 2013 (table 7).

• FIXED ASSETS: Fixed assets (nonamortizing balance) decreased by 144 million Euros and at the end of 2023 amounted to 777 million Euros, from 921 million Euros at the end of 2013, while they had reached their highest level, within the period in examination, at 1,017 million Euros, in 2015 (table 8).

• Insurance provisions at the end of 2023 amounted to 15,211 million Euros, the highest level during the whole decade, compared to 11,921 million Euros at the end of 2013, increased by 3,290 million Euros (table 9).

Director General Hellenic Association of Insurance Companies

The Greek insurance market is making continuous steps of progress, in order to strengthen its contribution and footprint in the Greek society and economy. Insurance companies are moving forward, whether we are talking about targeted services and products and providing services to insured or about solvency and digital transformation. HAIC, as the collective body representing insurance companies operating in Greece, supports the work of insurance companies as a forum for cooperation, dialogue and exchange of experiences and best practices.

An important part of our work is to bring society and the insurance market closer together, focusing on disseminating the value of insurance for today's citizen, family and companies Our contribution in this sector is continuous, including actions that take place throughout the year.

The campaign entitled "Why should I be insured?" which started at the end of 2023 and continues unabated, has a key role in this. In combination with the informative platform https://iknow-insurance.gr/, this campaign has brought visible and substantial results, answering the questions one may have about insurance and its benefits in a simple way. The campaign will be on air 365 days a year and will be enriched with new content.

In addition, acknowledging that insurance awareness, as well as awareness of the values of prevention and risk assessment should be cultivated at an early age, HAIC in collaboration with Junior Achievement of Greece has developed the program “Dream wisely”, which educates students in risk assessment and the value of insurance. The importance of this project is reflected to our actions for its expansion and gradual enrichment.

In the field of education, we have developed partnerships with major universities with the aim of enhancing and deepening the interconnection of the insurance market with the sector of higher education. In this context, we conduct informative events and activities that help students understand what the insurance market is and what it offers, as well as our members to come in contact and approach tomorrow's executives.

Of course, our work is not limited to the above. We update regularly the public and all interested parties on major issues that concern society and the economy, we organize informative events for our members, insurance brokers, companies, students and others, we donate to those in need and support the work of Public Bodies, such as the Fire Brigade and the Traffic Police, on prevention of road accidents.

According to a survey that we conducted, 97.5% of our members is very satisfied or satisfied with the work of HAIC and its response to their requests and 96% very satisfied or satisfied with the immediacy and quality of the information they receive.

Our goal is for all citizens of the country to understand that insurance can help them protect what is of value to them. We are working towards this goal and will continue to do so consistently and continuously.

Elina Papaspyropoulou

We

SCAN ME

Philippa Michali, Chairman & CEO

ΝΝ HELLAS

Our goal is to be the best insurance company in the Greek market

What strategic measures is your company implementing in order to contribute to the desired goal of increasing the insurance market as a percentage of GDP?

The low rate of insurance penetration in Greece means that the insurance market remains low as a percentage of GDP, which is the biggest challenge of our industry. The society in Greece is not properly informed and, except for cases where insurance is compulsory, there is a strong insurance illiteracy. Further, the purchasing power in Greece is reduced, since the recent Eurostat data show that GDP per capita in purchasing power units in 2023 was 33% below the European average. So, in an environment of reduced purchasing power, low insurance awareness does not allow private insurance to be prioritized higher than other needs in the allocation of a household's budget. At the same time, there are no tax incentives for the entire range of the provided insurance services, fact that would encourage Greeks to be insured.

It is an imperative need that our industry, as a whole, to invest consistently first in informing the public on matters related to financial literacy, but also to work closely with the State in order to find the appropriate incentives that will make the idea of insurance more attractive.

For us at NN Hellas, educating of the public is an important goal. First of all, our priority is to communicate in a simple and understandable way with our individual target audiences, where they are, taking advantage of all those channels and tools that our potential customers use. For example, we create attractive content on Social Media and digital media in general, promoting their education. We apply the principles of plain and understandable language, free of technicalities, difficult to understand technical terms and focused on the benefits of insurance.

We don't stop there though. We believe that we have the same responsibility, if not more, when someone trusts us and becomes our customer. Our concern is to confirm that their decision was right, taking care of their best possible service. We simplify our processes, using those new methods and technological tools that will lead us to a special experience for our

We believe that we have the same responsibility, if not more, when someone trusts us and becomes our customer. Our concern is to confirm that their decision was right, taking care of their best possible service. We simplify our processes, using those new methods and technological tools that will lead us to a special experience for our customers

customers. New technologies are here and as an organization –gradually– we are integrating them more and more into all areas of our operation, so that we can meet the needs of each and every of our customers, as accurately as possible. In addition, they allow us to simplify processes and free up time, which is then invested where it really has value, to the serve of our customers.

Which are the company's goals for 2024 in terms of production results, expansion of operations and partnerships, new products and services?

We welcomed 2024 having already experienced a particularly successful year, during which, in addition to completing most of the integration of the operations of the two companies, we also managed to bring important financial results. This, in itself, sets the bar very high for 2024. We are particularly proud of our team's momentum since, in the first four months, new production is growing at a rate of over 20% compared to the corresponding period in 2023.

Beyond any doubt, our goal for 2024 is to maintain and expand our leading position in the market, which is offered to us by the trust of our policyholders. We aim to achieve this by growing both in terms of production and expanding our customer base both in individual and group contracts, through all the available distribution networks.

However, our goal is not only to be the largest, but also the best insurance company in the Greek market. Thus, the satisfaction and excellent experience of the customers

who will trust us, is a priority for us. We also achieve this by creating new products, even more adapted to the different needs. In fact, recently, in April 2024, we introduced the “NN Orange Life” and “NN Orange Life Plus” life insurance programs to the Greek market, which act as an additional safety net in the event of death or permanent total incapacity for work due to illness or accident, at an affordable cost, providing at the same time the possibility of additional optional coverages. We will remain focused on this, making more and more use of the new technologies, with the help of which, in the future we will even be able to "match" customers, with products and partners.

Simplifying our operations through technology and automation are also the key means to help us achieve our overall strategy, at the core of which remains the customer experience. Today, in Greece we are in the process of implementing chatbot using AI, in order to serve our sales network, which will provide answers about the company's products and processes. This way we will save time for our partners, so that they can focus even more on the serving of our insured.

All the above mentioned goals complement one another and they are strategically defined, so much in a medium-term horizon, for a positive sign within 2024, as well as in the long term, so that we are the insurance company that Greeks will choose even after twenty years from now.

Companyinstitution in the Greek insurance market

Ethniki Asfalistiki has been a key company in the Greek insurance market for over 130 years. Since its establishment in 1891 until today, the company offers its policyholders easy and effective solutions to protect what is important to them, while it also enables them to greet each day with optimism and confidence. Today, Ethniki Asfalistiki has a flexible and extensive network of over 5,000 Certified Insurance Intermediaries, while it employs more than 500 employees and is trusted and preferred by more than 1.7 million policyholders. Believing in values such as integrity and reliability, the company has placed People at the heart of its business, designing simple and direct solutions to meet today's complex needs. Its strategy for entrepreneurship, environmental, social, and corporate governance is part of a more comprehensive operating model which has sustainable development at its core, as well as innovation and prosperity as its main objectives. Based on this model, Ethniki Asfalistiki is able to respond quickly and effectively to the ever-changing needs of people and businesses, making the company one of the main pillars of the Greek private insurance market and of the country's economic development

New CEO Mr. Dimitris Mazarakis

Mr. Dimitris Mazarakis takes over as the new CEO of “Ethniki” Insurance, replacing Mr. Robert Gauci, who is leaving the company. In particular, as announced by “Ethniki” Insurance, after the completion of the first phase of the transformation plan and the new corporate strategy, Mr. Robert Gauci will leave the company at the beginning of July and Mr. Dimitris Mazarakis will take over as the new CEO.

Mr. Dimitris Mazarakis will take the lead of “Ethniki” Insurance on July 8, 2024, with the completion of the foreseen relevant procedure of the Supervisory Authority.

Mr. D. Mazarakis, with 30 years of experience in the insurance market and proven ability to transform and create leading organizations and teams, had an extremely successful career at ALICO AIG Life and MetLife, having served as Actuary and Director of Financial & Administrative Services, as well as Sales Director and CEO in Greece. For the last six years he has been the head of MetLife in the Persian Gulf regions (UAE, Qatar, Oman, Bahrain, Kuwait) and Saudi Arabia.

With a distinguished career in leading positions within the insurance industry of our country, but also internationally, Mr. D. Mazarakis has established himself as a pioneer in the development of the Greek insurance market. He has successfully served in important institutional roles such as President of the Association of Actuaries of Greece, Vice President of the Private Life Insurance Guarantee Fund, President of the Life, Health & Pensions Committee and President of the Association of Insurance Companies of Greece.

“Ethniki Insurance is now ready to step into the next stage of its transformation and I am proud of what we have achieved so far. With this transition, Ethniki Insurance will accelerate its growth rate by highlighting and completing the successful path we have already charted”, said Mr. Robert Gauci.

For his part, Mr. Dimitris Mazarakis considers it a great honor to assume the position of CEO at “Ethniki” Insurance, a leading force in the Greek insurance market.

“I express my deep appreciation for the trust shown in me by the Board of Directors and the company as a whole. I believe that the opportunity to

contribute to the further development of this historic and leading company is an honor but at the same time an important responsibility.

I am fully convinced that, with continued dedication and team effort, we will succeed in creating a model organization that will deliver value to all stakeholders and drive developments in the insurance market, while setting the standards for the industry”, said Mr. Dimitris Mazarakis

We are going through a critical period for the Greek economy and the insurance market, with positive prospects that open new avenues for development. I look forward to working closely with the administrative and productive human resources of Ethniki Insurance, in order to create an even stronger and more resilient organization, ready to adapt and respond to new the challenges.

I am fully convinced that, with continued dedication and team effort, we will succeed in creating a model organization that will deliver value to all stakeholders and drive developments in the insurance market, while setting the standards for the industry”, said Mr. Dimitris Mazarakis.

“The Board of Directors of “Ethniki” Insurance welcomes Mr. Dimitris Mazarakis to the position of CEO of the company”, said Mr. Nasos Zarkalis, Chairman of the Board of Directors of “Ethniki” Insurance.

“Dimitris is a distinguished executive of the Greek and international insurance market, with a consistently successful course and thorough knowledge of the sector. We are sure that he will lead Ethniki Insurance to a new brilliant era of its long history, for the benefit of the millions of Greeks who trust our company, as well as our employees and shareholders”, continued Mr. Zarkalis and added that “we would like to thank Robert for his valuable contribution and especially for the excellent cooperation, during the first stage of the company's transformation and we wish him every success in his future endeavors”.

EUROLIFE FFH

Alexander Sarrigeorgiou, Chairman of the Board & CEO Eurolife FFH

EUROLIFE FFH

Leading position in the market

The past year was a year full of challenges, which tested the insurance market to an unprecedented degree. Natural disasters took center stage, but fortunately our market showed that it has the strength to meet the needs of its beneficiaries. Eurolife FFH stood by the people affected from the first moment and through a series of actions aiming at their relief and immediate compensation, it proved its commitment to stand next to the people who trust it with professionalism and empathy.

Despite the increase in inflation and the pressures our economy is under, we manage to have a positive outcome, which fills us with satisfaction, as it shows that even in difficult times, we remain strong and solvent

We are a company that has proven its potential over the years and that consistently holds a leading position in the market. Taking advantage of our good momentum of the last few years and with the confidence given to us by Fairfax Financial Holdings Limited, we started strongly in 2024 and so we continue. Despite the increase in inflation and the pressures our economy is under, we manage to have a positive outcome, which fills us with satisfaction, as it shows that even in difficult times, we remain strong and solvent. Our goal is to evolve our products and develop new ones so that we are always one step ahead in the services we offer to our customers and partners. We follow a successful multi-channel strategy, with each channel having different expertise and penetration depending on the customer profile it targets. Accordingly, our products will continue to be addressed to both individuals and businesses, because our aim is to "listen" to the Greek insured in every way. Such as, for example, our cyber protection products, which give individuals the necessary security during their online activity, and small and medium-sized businesses the ability to effectively protect themselves from the most specialized incidents in cyberspace. And I make specific reference to small and medium-sized enterprises, as we will continue to invest in programs designed specifically for them, since they are the backbone of our country's economy.

We aspire to encourage people to achieve more every day, but also to enjoy what is important to them. For this reason, a pillar in which we systematically invest is technology and the flexibility it offers. The digitization of our services is our priority, in order to offer solutions that free up time for our customers and facilitate their daily life.

Empowering our people, the cornerstone of our company, is also high on our agenda. We constantly invest in our employees’ and partners’ training, with the aim of becoming an even more efficient and fast team in the way we respond to our customers’ needs.

At the same time, as a company that is a living cell of the society in which it operates, we consider it our duty to return part of the value we create through our business activity to our society as a whole. That is why our support to social nature initiatives is a key pillar of our strategic direction and practical proof of our philosophy for sustainable development.

Our country is on a positive recovery path with the ultimate goal of returning it to a state of prosperity. Through investments’ increase and reinforcement of our competitiveness in the international markets, we will achieve our economy’s muchdesired "rebirth". As a leading insurance company, we will continue to strengthen our investment strategy by being a “fellow traveler” of Greece on the road to development, but also to fulfill even more comprehensively our fundamental mission, that of protection. To make sure through all our products that our customers feel safe, both for themselves, but also for their children, their homes, their business or its staff.

GENERALI

After achieving a pinnacle moment marked by exceptional profitability and diversified strength within the realms of Insurance and Asset Management, the Generali Group proudly announced unprecedented net results for the preceding year. This remarkable achievement underscores the Group's commitment to sustained growth and innovation, confirming that complacency has no place at the top.

In full alignment, Generali Hellas likewise experienced a year of remarkable financial performance in 2023, reaffirming the Company's dominant position in the Greek insurance market. Generali underscored its resilience amidst substantial shifts in the insurance landscape and geopolitical conflicts, which have precipitated an enduring energy crisis and inflationary pressures. Despite these challenges, the organization has upheld its dynamic growth trajectory, adeptly navigating the demands arising from catastrophic phenomena attributable to climate change that have impacted the country. Amidst these disruptive circumstances, Generali successfully honored the commitments made following the completion of the acquisition of AXA Insurance two years ago. The demanding integration process was executed with precision across all levels within the stipulated timeframe, setting a noteworthy precedent in efficiency. This endeavor culminated in the establishment of a new, contemporary insurance entity characterized by a cohesive, human-centric culture with a strategic emphasis on leveraging technology for the mutual benefit of policyholders and partners. Generali's production for the current year surpassed the 500 million euros mark, reflecting not only a robust expansion of its portfolio but also concurrent development across all product lines. These metrics signify the attainment of yet another milestone: a 25% surge in the Company's production, during the two-year period of integration, achieved alongside structural refinements in its operations. The strategic planning undertaken thus far, coupled with the diligent and steadfast manage-

GENERALI Continuous human-centered development

Generali's production for the current year surpassed the 500 million euros mark, reflecting not only a robust expansion of its portfolio but also concurrent enhancements across all product lines. These metrics signify the attainment of yet another milestone: a 25% surge in the Company's production, achieved alongside structural refinements in its operations

ment of the Company, has consistently garnered recognition of the company’s outstanding strategic directives aimed at securing a leading position in the Greek insurance sector. The organization's robust Solvency Ratio (Solvency Ratio II 148%), indicative not only of growth but also of sound financial stewardship, reaffirms that decisions are made following comprehensive data analysis and with a focus on optimizing available resources to maintain a balance between corporate resilience and profitable growth.

This approach guarantees the requisite flexibility, to navigate recent natural disasters without compromising the Company's financial integrity. Concurrently, the organization acknowledges contemporary demands and, cognizant of the significance of investments in expertise and cutting-edge tools, advances purposefully in alignment with its strategic blueprint.

This year’s positive results reaffirm that Generali's identity is inherently intertwined with traits of reliability, consistency, and a personalized approach, which have remained steadfast characteristics of the organization over time. This is evident in fig-

ures that show that more than 29% of the organization's policyholders maintain more than two insurance policies with the company, signifying a deep-seated trust in the Company and validating the efficacy of its Lifetime Partner strategy, which aims at providing continuous support to policyholders throughout every stage of their lives.

The flexibility and extensive range of programs contribute significantly to this percentage, underscoring the ecosystemic philosophy of operation. By offering a comprehensive umbrella of protection with multiple coverage options per product, Generali establishes itself as the preferred choice for individuals seeking holistic insurance solutions. Generali's objective is to persist in delivering a comprehensive suite of services to individuals, thereby enhancing their overall quality of life. This approach begins with the ideal of prevention, providing guidance and encouraging active participation in one’s overall well-being, through educational initiatives, and the cultivation of improved habits, with primary coverage and compensation provided during challenging circumstances, along with essential

support for swift recovery to ensure a seamless transition to the "next day".

Furthermore, Generali's extensive network of 3,500+ agents serves as a decisive factor for individuals considering the acquisition of its programs. Recognizing the pivotal role of the insurance advisor-insured relationship, the Company consistently invests in the training and support of its intermediaries. This commitment results in the creation of added value through enhanced services and networks, reinforcing Generali's position as a trusted provider in the industry.

For 2024, Generali's CEO, Mr. Panos Dimitriou, unveiled plans for the implementation of 24 strategic projects centered around four key pillars: profitable growth, operational excellence, customer and intermediary experience, and future readiness. He emphasized, "Generali is an organization that prioritizes actions over mere words in all endeavors. This marks a period of fortifying the bedrock of our relationships with those who place their trust in us, enhancing our services, and perpetuating Generali's course of reliability and stability into the future."

Giannis

Kantoros CEO

INTERAMERICAN

Emphasis will be placed on strategic synergies of the Interamerican Group with all insurance companies, for the utilization of the “Medifirst” primary health care network by their clients. Also, among other things, the investment in the development of the network of “Medifirst” polyclinics is expected to be the “peak” of Interamerican’s strategy for health insurance in the coming years

The possibility of acquisitions is open

What measures of strategic character is your company taking in order to contribute to the desired goal of increasing the insurance market as a percentage of GDP?

The Interamerican Group, loyal to the values it has advocated for 55 years, prioritizes the development of insurance awareness. Insurance is perceived as a social good, from which citizens should expect immediate and easy access, affordable options in terms of cost and responsible management on the part of insurance providers. All of the above are included and implemented within the framework of the Group's Strategic Development Plan (SDP), which, among others, includes specific actions regarding:

· The development of new products and services –we are constantly evolving and a typical example of this is the new generation of the integrated health system “Bewell”, which is designed based on the individual needs of each insured and can be adapted to the financial capabilities of each household. Allied with the new possibilities that the digital world opens up before us, we expand access to quality health services by ensuring innovative services such as Telemedicine.

• The development of new distribution channels, such as, for example, the investment in digital platforms (Anytime, AnytimeApp etc.) with the aim of providing insurance access to the largest possible population groups, in a direct and affordable way.

• Taking advantage of the challenges and opportunities of our time –for example, the Letters of Guarantee for the financing of Major Projects through the Resilience & Recovery Fund, an area in which Interamerican Group also plays a leading role within the Greek market and concerns the improvement of infrastructure and the transition to “green energy”.

What are the company's goals for 2024 in terms of production re sults, expansion of operations and partnerships, new products and services?

Our corporate strategy has a clear and straightforward direction: flexibility and adaptability, innovation and acceleration –demonstrating quick reflexes at all levels–, providing solutions and comprehensive service to the people who trust us, beyond the boundaries of traditional insurance, so that they live more, in a safer and better way.

In order to achieve this, we have designed the Strategic Development Plan (SDP), a three-year organic growth plan, based on which, we aim for levels of over €500 million GWP for 2024, which in the case of the Interamerican Group is of greater importance, as we are talking about figures that relate exclusively to insurance production and not figures that include investment products.

Despite the high concentration of the market, due to recent acquisitions and the strengthening of competition, Interamerican managed to be in the top five corporations in 2023, through organic growth. However, given the global trend of market concentration, it is open to the possibility of acquiring either companies or portfolios, in order to increase its share. But each case is examined separately, since the aim is, through synergies, to create insurance companies in Greece that can compete with the corresponding European ones.

As far as the development of new products is concerned, the presentation of the new generation of the “Bewell” health system is important, while in terms of partnerships, we are steadily investing in the development of the Roadside Assistance sector and car repair workshops (Car Point). At the same time, emphasis will be placed on strategic synergies of the Interamerican Group with all insurance companies, for the utilization of the “Medifirst” primary health care network by their clients. Also, among other things, the investment in the development of the network of “Medifirst” polyclinics is expected to be the “peak” of Interamerican’s strategy for health insurance in the coming years.

ALLIANZ

Christidis CEO

Vassili

What measures of strategic character is your company taking in order to contribute to the desired goal of increasing the insurance market as a percentage of GDP?

Despite our industry's efforts to raise insurance awareness and increase its penetration in GDP, Greeks remain significantly uninsured compared to the European average. Of course, we recognize that insurance in our country remains a state-run affair and over time, we as insurers, have sought to emphasize the value of private insurance and its role in society.

On the other hand, however, we understand that the state cannot respond to the ever-increasing challenges arising from climate change and the technological developments. As one of the largest institutional investors, with credibility and strong solvency, we firmly believe that we can play a catalytic role in such an environment. The reason is that we understand that people and businesses need private insurance today more than ever, in order to feel secure in creating their own sustainable future, as they imagine and desire it. At “Allianz European Reliance”, we have the potential and the strategy required to make a substantial con tribution to the prevention and sav ings in critical areas of the Greek economy, as well as to improve the quality of life of Greeks, and to wards this end we take an integrat ed approach.

Central to this approach is the ef fort of continuous innovation in our products and services, which we constantly adapt to the modern needs of the market, utilizing both our expertise of the local market, as well as the possibilities offered by the Allianz brand, the No1 insur ance brand worldwide. An ex ample of these services, which shows exactly how we deliver on our commitment to our customers, is ‘’Asfal istikos Goneas”, the mar ket-leading and award-win ning loyalty program with unique benefits at no extra cost. Of course, along with the products, we obviously place a very high emphasis on pro viding high quality customer service, relying on both our people and our network of partners, a network of more than 7,500 across Greece. Through our network, we pro vide our customers with the lat est digital and non-digital tools

Strategic priority and home insurance

In 2023 we achieved a considerable increase in production of up to 7% and in 2024 we are targeting an even higher one, leveraging the capabilities and dedication of our people, the largest network of partners in Greece and the expertise provided by Allianz Group

and solutions, in order to always be there for them.

Finally, in addition to the above, we continuously invest in awareness campaigns that highlight the importance of insurance and its

company as part of the consolidation, we believe we are in an excellent position to grow by significant margins in all areas.

In 2023 we achieved a considerable increase

targeting an even higher one, leveraging the capabilities and dedication of our people, the largest network of partners in Greece and the expertise provided by Allianz Group. Training and expanding the ca

possible way, enhancing their Allianz experience.

At the same time, recognizing the modern challenges, we focused on reshaping our programs in critical areas such as Health and Life, adapting them to the needs and financial capabilities of the Greek people. A strategic priority for us in the coming period will also be the area of home insurance, considering its importance of shielding against the risks posed by the climate change and the earthquake-prone nature of Greece.

It is worth noting that, specifically to serve the specialized needs of large businesses, Allianz Group

ERGO

Nikos Antimisaris

CEO ERGO Hellas

Our customers are at the center

What strategic measures is your company taking in order to contribute to the desired objective of increasing the insurance market as a percentage of GDP?

Greece's insurance penetration rate falls considerably short of the European average, currently hovering below 2.5% of GDP. Recognizing this gap, the Hellenic Association of General Insurance Companies (EAEE) and insurers are collaborating to address it. Our collective goal is to cultivate a stronger insurance culture in Greece.

Through targeted information campaigns, workshops, and seminars, we aim to raise public awareness of the value proposition of insurance. We will promote the adoption of insurance plans that are tailored to meet the specific needs of individuals and businesses.

At ERGO Insurance, fostering a robust insurance culture is a core priority. We believe insurance serves a vital purpose, particularly in protecting those who are financially vulnerable. It's crucial for Greeks to recognize that insurance isn't an expendable cost, but rather an essential investment. Insurance policies can be powerful tools for ensuring financial security and achieving one's financial goals.

ERGO takes a strategic approach to insurance innovation, focusing on developing new products and services that cater to the evolving needs of individuals and businesses. We prioritize a client-centric approach, making insurance as simple, convenient, and efficient as possible for our customers.

In essence, we want to provide peace of mind through exceptional service experiences. That's why we continuously invest in new technologies and innovation to fulfill our promise of making insurance easier at every touchpoint.

Insurance intermediaries play a crucial role in this effort. They act as trusted advisors, explaining the benefits of insurance in clear, concise terms and guiding clients through a needs analysis. This ensures the selection of insurance products, services, and programs that perfectly align with individual needs and financial capabilities.

ERGO recognizes the invaluable role of our intermediary network in achieving sustainable growth and production goals. We prioritize the continuous development of our part-

At ERGO

Insurance, fostering a robust insurance culture is a core priority. We believe insurance serves a vital purpose, particularly in protecting those who are financially vulnerable. It's crucial for Greeks to recognize that insurance isn't an expendable cost, but rather an essential investment. Insurance policies can be powerful tools for ensuring financial security and achieving one's financial goals

ners through comprehensive training programs. These programs equip them with in-depth knowledge of core financial and investment concepts, the regulatory landscape, and balanced portfolio construction.

Enhancing insurance literacy is a shared responsibility. Through collaborative efforts to raise awareness, educate the public, and promote market stability, we can build a more secure future for all stakeholders.

What are the company's goals for 2024 in terms of productive results, expansion of operations and partnerships, new products and services.

Our strategic vision hinges on two

key pillars: the development of innovative products and services, and continuous digital transformation. This dual focus aims to position ERGO as a leader in customer-centricity and service excellence, ultimately solidifying our position as the preferred choice for customers, partners, and employees. In line with this vision, the company will continue to invest in expanding its sales networks and fostering a robust multichannel distribution strategy.

As previously mentioned, ERGO prioritizes making insurance easier for our customers. We will achieve

this by developing new products with clear and understandable terms that cater to evolving customer needs. Additionally, we are committed to streamlining insurance and claims processes for maximum efficiency.

Targeted Product Development:

• Property Insurance: We will emphasize the importance of natural disaster insurance through targeted promotions, educating the public on its necessity.

• Travel & Tourism: Recognizing the significance of tourism to Greece, we will offer specialized insurance products for both tourists and tourism businesses.

• Life & Health Insurance: We will strengthen our presence in this segment by upgrading existing products and introducing new ones with comprehensive benefits and high-quality services.

Digital transformation remains a core strategic objective for ERGO. We are committed to continuous investment in new technologies and applications, such as robotics and big data analytics, to enhance the customer experience and maintain our competitive edge in the innovative insurance market. These technologies will empower us to:

• Personalize Insurance Solutions: Leverage data insights to craft personalized insurance proposals for our customers.

• Automate Processes: Streamline internal operations through automation and digitization, simplifying workflows and boosting efficiency.

• Empower Employees: Facilitate daily activities for our human resources by providing them with the right tools and technologies.

Building a Workplace of Choice

In 2024, a key priority is solidifying ERGO's position as an employer of choice. We will achieve this by:

• Embracing Innovation: Implementing innovative practices that enhance the employee experience.

• Sustainability Focus: Integrating a comprehensive sustainability strategy focused on environmental protection, social responsibility, and fostering an inclusive and flexible work environment.

ERGO's strategy for 2024 is ambitious, yet firmly grounded in the evolving demands of the modern insurance market. It positions us for continued success and growth.

In 2022, insurers accumulated gross written premiums (GWP) of approximately

16.51 billion lei

As at 31 December 2022, 26 insurance companies, authorised and regulated by ASF, were active in the insurance market, of which 13 were engaged only in general insurance (“GI”), 7 were engaged only in life insurance (“LI”) and 6 in composite business.

In 2022, insurers accumulated gross written premiums (GWP) of approximately 16.51 billion lei, an increase of approximately 16% compared to the previous year: gross written premiums for general insurance (GI) are about 13.86 billion lei, up 19% from the previous year; Gross written premiums for life insurance (LI) are around 2.65 billion lei, up 1 % compared to 2021. The share of insurance in GDP, an indicator calculated as the ratio of the value of gross premiums written (excluding reinsurance business and gross premiums written in other countries) by locally authorised and supervised entities and branches (authorised in other EU Member States underwrit-

ing under the freedom of establishment, FOE) to gross domestic product, was 1.29% in 2022, stable compared to the previous year.

Insurance density, calculated as the ratio of the value of gross written premiums (excluding reinsurance business and gross written premiums in other countries) in Romania (including GWP of branches under the right of establishment, FOE) to the number of inhabitants, is an indicator of how much a country’s average inhabitant spends on insurance products. In 2022, the insurance density in Romania will be 959 lei/ inhabitant, an increase of about 21% compared to the previous year.

The Romanian insurance market is characterised by a medium to high degree of concentration. In 2022, approximately 92% of the total volume of gross written premiums was carried out by 10 insurance companies out of the 26 companies authorised and regulated by ASF, which car-

Southeast Europe TRIBUTE Insurance Market

ried out insurance/reinsurance activity as of 31 December 2022.

Across the insurance market as a whole, the number of insurance contracts in force at the end of 2022 was around 15.5 million, up from the previous year by around 5%. Data for 2021 does not include City Insurance contracts still in force at the end of the year. The number of insurance contracts in force at the end of 2022 for general insurance represents about 91 % of the total number of contracts. The number of contracts in force at the end of the reference period for general insurance business increased by around 5.7% compared to 2021, while the number of contracts in force for LI decreased by around 3.4%.

In 2022, insurance companies reported gross claims paid (excluding maturities and partial and total surrenders), cumulatively for the two categories of insurance, in the amount of RON 6,580,593,993.

2.276.502 χιλιάδων MKD (2021: 2.001.774 χιλιάδες MKD), δηλαδή αύξηση 13,72%.

TRIBUTE Insurance Market

Southeast Europe

The Insurance Supervision Agency (hereinafter the "ISA") is an independent regulatory body on the insurance market that exercises public authority, established by the Law on Insurance Supervision and the Law on Compulsory Traffic Insurance.

ISA aims to contribute to the legal and efficient functioning of the insurance market in the North Macedonia, for its continuous development, for the protection of the rights and interests of the insured entities, as well as for the promotion of the financial stability of the country.

At the end of 2022, 16 insurance companies are actively working on the insurance market in the Republic of North Macedonia, of which 11 companies are engaged in non-life insurance, while 5 are in life insurance. In terms of intermediation, there are 42 insurance brokerage companies, 12 insurance representation companies and 8 banks that perform insurance representation operations. The total gross written premium

το 2022

NORTH MACEDONIA

The total gross written premium

("GWP") in 2022 is MKD 12,785,429 thousand, which represents an increase of 9.94% compared to the GWP achieved in 2021 (2021: MKD 11,629,700 thousand). In the non-life insurance section, GWP was achieved in the amount of MKD 10,508,927 thousand (2021: MKD 9,627,926 thousand), i.e. a growth of 9.15% compared to 2021. At the same time, in life insurance, GWP was realized in the amount of MKD 2,276,502 thousand (2021: MKD 2,001,774 thousand), which is an increase of 13.72%. On 31.12.2022, total assets value of 16 insurance companies is MKD 30,393,398 thousand, which have increased by 6.6% compared to last year (2021: 28,512,618 thousand).

The total calculated capital1 of insurance companies shows a growth of 1.58% compared to 2021 and, at the end of 2022, amounts to MKD 7,241,199 thousand. The required solvency margin, as the main indicator for assessing the stability of the insurance sector, is aggregated to

9,94% tο 2022

MKD 2,045,720 thousand, which means that the capital of the insurance sector is 3.54 times above the required solvency margin. During 2022, the insurance sector reported a profit before taxation in the amount of MKD 631,835 thousand. At the same time, the non-life insurance companies made a profit of MKD 380,283 thousand, while on the other hand, the profit of the life insurance companies before taxation amounted to MKD 251,553 thousand. In terms of regulation in 2022, 6 amendments to by-laws that were already in force, and 1 new by-law were adopted. Also, in March 2022, the Council of Experts of the ISA takes a position to recommend to the insurance companies to refrain from distributing and paying dividends from the profit realized in 2021, i.e. to retain the same in order to increase their statutory reserves, as long as there is uncertainty regarding the duration of the crisis and risk assessment on their financial condition and stability.

2021 was a year marked with many challenges due to the natural disasters

IInsurance Market

Southeast Europe

nsurance Association of Türkiye is a legal entity with the status of a public institution, established by the Article 24 of Insurance Law (5684) which came into force 14 June 2017. The Association aims to develop insurance profession, ensure solidarity between the companies, and prevent unfair competition. All insurance, reinsurance and pension companies in Türkiye have to become a member. Currently, there are 63 members of the Association, 38 of them nonlife, 17 life and pension companies, 5 life and 3 reinsurance companies. 2021 was a year marked with many challenges due to the natural disasters, such as flood and forest wildfires, as well as currency fluctuations in the fourth quarter, and globally rising inflation rates. Turkish insurance industry continued to support our citizens in this period with the assurance it extended on either personal or business basis, as the total amount of claims undertaken has reached to 63,6 Billion TRY. These developments have made an important contribution to the rising levels of the insurance awareness. When looking at the results of 2021, it is observed that premium production in non-life insurances increased by 28.5% up to 87,5 Billion TRY, and in life insurance by 20.1% up to 17,3 Billion TRY. For life and non-life insurances, total premium production grew by 27% up to 104,9 Billion TRY compared to the same period of the previous year. With an asset

size of 427 billion TRY as of the end of the 2021, the insurance sector is the second largest actor in the financial system after banking. Going beyond its assets size, Turkish insurance and pension industry serves to the sustainable growth of the country’s economy thanks to the coverage it extends to economic activities. The continuity of the economic activities are ensured thanks to a total 230 trillion TRY worth of coverage, reaching to 32 times of the Gross Domestic Product. The funds injected into the economy as of 2021 has reached to 361 Billion TRY, including pension funds. The number of employees of insurance and pension companies has reached to 20.000, while the number of employees including related industries such as health-care industry and vehicle repair industry exceeds 200.000 individuals. Insurance industry has made a technical profit of 10,6 Billion TRY and financial profit of 5,24 Billion TRY, and realized a net period income after tax of 11,9 Billion TRY, and industry assets size grew by 38.7%. In the insurance industry, while the top 10 companies had a share at the levels of 55% in total premium production in 2019, this rate increased up to 60% in years 2020 and 2021. This is mainly driven by the corporate mergers. In 2021, agencies with 57.4% in non-life branches and banks with 78.4% in life branch became the distribution channel with the highest share in premium production.

SERBIA

The

share of non-life insurance accounted for 78.6%

At end-2022, the insurance market in Serbia comprised 20 (re)insurance undertakings, unchanged in y-o-y terms. Sixteen undertakings engaged in insurance activities only and four in reinsurance activities. Of the insurance undertakings, four were exclusive life insurers, six exclusive non-life insurers, while six provided both life and non-life insurance.

The breakdown by ownership at end-2022 shows that of 20 undertakings, 15 were in majority foreign ownership.

At end-2022, foreign-owned undertakings held majority shares of life insurance premium (86.3%), non-life insurance premium (59.9%), total assets (72.3%), and employment (65.1%). In addition to (re)insurance undertakings, the sales network also consisted of: 17 banks, eight

financial lessors and a public postal operator, licensed for insurance agency activities, 109 legal persons (insurance brokerage and agency services), 78 insurance agents (natural persons – entrepreneurs), and 4,404 active certified agents/brokers in insurance.

In 2022, total premium generated by insurance undertakings came at RSD 133.9 bn (EUR 1.1 bn or USD 1.2 bn) , which is an increase of 12.2%. The premium composition shows that the share of non-life insurance accounted for 78.6%, while the share of life insurance edged down from 22.7% in 2021 to 21.4% in 2022, owing to stronger nominal growth in non-life compared to life insurance premium. The composition of the overall portfolio indicates that five types of non-life insurance alone – voluntary health insurance, motor vehicle

insurance – “kasko”, insurance of property against fire and other hazards, other property insurance and MTPL insurance – accounted for 66.8% of the total. In 2022, MTPL insurance kept the leading share in total premium (29.1%), followed by life insurance (21.4%) and property insurance (19.9%). Accident insurance, which, among other things, includes compulsory insurance such as passenger insurance in public transportation and insurance of employees against occupational injuries and illnesses, accounted for merely 2.6% in 2022. Judging by the premium of voluntary health insurance, which increased by as much as 43.5%, the share of this type of insurance went up from 5.8% in 2021 to 7.4% in 2022. Four companies accounted for 77.4% of the market.

Southeast Europe TRIBUTE Insurance Market

CROATIA

Insurance companies recorded a total loss of HRK 3.4bn in 2022

The number of insurance companies remained unchanged in 2022. There were 15 insurance companies operating in Croatia at the end of the year: three life insurance companies, four non-life insurance companies and eight composite insurance companies. Gross written premium stood at HRK 12.7bn at end-2022, growing by 8.1% on an annual basis. This growth stemmed from the increase in non-life insurance premium, with gross written premium in this segment rising by 11.4% on an annual basis, standing at HRK 9.9bn at the end of the year. The rise in non-life insurance premium largely came from motor vehicle liability insurance, motor vehicle insurance and property insurance, which rose by 9.2%, 12.8% and 12.2%, respectively. While non-life insurance premium increased, life insurance premium dropped by 1.8% in 2022 and stood at HRK 2.8bn at the end of 2022. Claims settled increased by 6.1% in 2022 from the levels recorded in 2021 and amounted to HRK 7.7bn. In 2022, claims settled increased both in the life insurance category (to HRK 3.2bn, up by 7.2%) and non-life insurance category (to HRK 4.5bn, up by 5.3%).

Total assets of insurance companies stood at HRK 46.8bn in 2022, down by 3.1% from 2021. Investments are the largest asset item, accounting for

70.3% of total assets. Their value decreased by 7.9% in 2022. A decrease in investments was primarily due to the decline in the value of bonds related to interest rate increases, given that bonds accounted for as much as 64.2% of total investments at the end of the year. Technical provisions and capital and reserves were most widely represented in the liabilities structure, accounting for 68.7% and 21.8% of total liabilities, respectively. Despite stable operational business indicators related to insurance, financial losses associated with the rise in interest rates impacted total comprehensive income (especially in the life insurance segment). Consequently, insurance companies recorded a total loss of HRK 3.4bn in 2022. The capitalisation of insurance companies measured by the solvency ratio (hereinafter: SCR ratio) remained well above the regulatory minimum. The system-wide downward trend of the SCR ratio was halted in 2022, and the SCR ratio stood at 221.1% at the end of 2022 (rising by 10.9 p.p.), with the median SCR ratio standing at 188% (a growth of 2.7 p.p.). This growth is the result of a relatively stronger impact of interest rate hikes on the value of technical provisions than their impact on the value of investments, which ultimately contributed to the increase in the own funds of insurance companies.

SLOVENIA

Insurance penetration again fell

Insurance penetration again fell last year (by 0.3 percentage points, following a fall of 0.5 percentage points the year before); this was the result of higher GDP growth, which reached its highest absolute value to date. Insurance premiums accounted for 4.7% of GDP, the lowest figure since 2000. Insurance nevertheless remains one of the country’s most important sectors. Last year, total insurance premiums written by SIA members increased by 7.1% to EUR 2,801.3 million, the highest figure to date. After two years of negative growth, the life insurance market recorded growth of 3.5%, while the non-life insurance market recorded its eighth consecutive year of growth (8.5% in 2022). The proportion of total insurance premiums accounted for by non-life insurance was up by 1.3%, to stand at a record level of 72.4%. In the non-life insurance class, insurance premiums rose the most in health insurance (by 24.2%), comprehensive motor vehicle insurance (by 13.4%) and motor liability insurance (by 10.4%). In the life insurance class, premiums rose the most in unit-linked life insurance (by 10.5%). Premiums for personal insurance, which includes accident, health and life insurance, rose by 4.2% to EUR 1,557.8 million, which accounted for 55.6% of the total turnover of SIA members (a fall of 1.6 percentage points on 2021). Supplementary health insurance saw positive growth of 3.8% in 2022 and accounted for 22.6% of all insurance premiums collected (0.8 percentage points lower than in 2021). The average Slovenian inhabitant spent EUR 1,329 on property and life insurance last year. This was the highest figure seen to date. The insurance density of non-life insurance increased by 8.6% and reached a record level of EUR 963. The insurance density of life insurance increased by 3.6% to EUR 367, which was also its highest level so far.

IMontenegro

Robust growth

n the fiscal year 2022, Montenegro's insurance market demonstrated robust growth, recording a 9.58% year-on-year increase, and reaching a Gross Written Premium (GWP) of $117.34 million. The non-life sector dominated the GWP, contributing $93.86 million, which constitutes 80.26% of the total GWP, while the life sector contributed the remaining 20%, equivalent to $23.08 million. Premium volumes in the market saw a notable 10% increase in 2022. Montenegro's earthquake risk insurance premium is estimated at approximately $1 million, while flood risk insurance premium is notably lower, around $100,000. Storm risk is typically covered under property insurance against fire. All non-life insurers in Montenegro's insurance market offer catastrophic risk insurance encompassing earthquake, flood, and storm. Traditional sales channels like agents and brokers are widely utilized for insurance distribution, with the banking channel gradually expanding but not yet active for insurance sales. Compulsory Motor Third-Party Liability Insurance (CMTPL) is obligatory for all motor vehicle owners in Montenegro, contributing significantly to the non-life insurance market with a GWP of $47.97 in 2020. Key sectors vulnerable to climate-related perils in Montenegro include health, agriculture, tourism, and water resources.

TRIBUTE Insurance Market

Southeast Europe

ALBANIA

A market under development

Albania, with a population of 2.76 million inhabitants, has a growing insurance market based mainly on the automobile sector.

The main characteristics of the insurance market in the neighbouring country for 2023 according to the latest available data from the Albanian Financial Supervisory Authority of the Albanian supervisory authority are as follows:

Main features 2023

• During year 2023 the insurance market experienced an increase by 8.86% compared to year 2022. The volume of gross written premiums increased by ALL 1,864,264 thousand, reaching the figure of ALL 22,896,993 thousand (227 m euro)

• The number of policies was 1,466,080 an increase of 10.63% compared to year 2022.

• The volume of gross written premiums in NonLife insurance business was ALL 21,023,727 thousand, an increase by 8.94% compared to year 2022.

• The number of Non-Life insurance policies was 1,331,409 an increase of 10.90% compared to year

2022.

• The amount of gross insurance premiums in Life insurance business was ALL 1,859,195 thousand, an increase by 10.31% compared to year 2022.

• The number of Life insurance policies was 134,650, an increase by 7.98% compared to year 2022.

• "During year 2023, the total of paid claims was ALL 6,959,459 thousand, or 1.89 % less than compared to year 2022.

• The number of claims paid in year 2023 was 63,327 an increase by 4,817 compared to year 2022. Of those, 58,686 claims were paid by NonLife Insurers and 4,641 by Life insurers.

Main features 2022

Insurance Market The insurance market has 12 operational insurance companies during 2022. The volume of gross written premiums amounted to approximately ALL 21 billion, thus marking an increase by 9.21% compared to 2021. Gross written premium income increased in both Life

and Non-Life insurance activity. In 2022, in Life Insurance activity, the gross written premiums increased by 17.91% compared to year 2021. The increase was generated mainly as a result of the increase of the number of contracts in the debtor Life insurance, by nearly 56.12% of the total increase in Life insurance premiums. In the NonLife Insurance sector, in 2022 the gross written premiums increased by 8.51% compared to the year 2021. The income increase happened mainly due to the compulsory motor vehicle insurance portfolio, by about 80.35% of the total increase of Non-Life insurance premiums. According to the market share, the total gross paid claims for 2022 at the market level reached ALL 6.8 billion, marking an increase of 2.45%, compared to 2021. The Non-Life insurance claims settlement amounted to ALL 6.3 billion, whereas the Life insurance claims settled amounted to ALL 293 million. The rest of about ALL 290 million of the settled claims consist of the claims of the Compensation Fund and Claims paid as a direct insurer.

BULGARIA Insurance premium is estimates at 2.18% GDP

Insurance Market

TRIBUTE

Southeast Europe

As of the end of 2022, the total number of licensed (re) insurers based in the Republic of Bulgaria is 34, including 23 non-life insurers, 10 life insurance insurers and 1 reinsurer, whose license entitles the company to operate in reinsurance in general insurance and in life insurance. Thirty (30) companies apply Solvency II and are entitled to market access to the European Union and the European Economic Area (Single Market), while the other 4 insurers operate without a single market access. On the basis of the information from the quarterly reports according to Ordinance No. 53 at the end of the fourth quarter of 2022, which included the data for all insurers with headquarters in the Republic of Bulgaria: • the gross premium income as at 31.12.2022 amounted to BGN 3,613 million, recording an increase of 11% on an annual basis; • the Bulgarian insurance market (life and non-life insurance) was allocated in an 83% to 17% ratio for the benefit of the premiums written by non-life insurers; insurance penetration, calculated on the basis of gross premium income as a percentage of GDP, is estimated at 2.18% at the end of 2022 compared to 2.34% at the end of the previous year. • the financial result realized by the insurers at the end of 2022 amounts to BGN 244 million,

compared to BGN 235 million at the end of 2021. Non-life insurers report a financial result in the total amount of BGN 178 million, compared to BGN 180 million at the end of 2021. Life insurers also reported a positive financial result of BGN 66 million, compared to a result of BGN 55 million at the end of 2021.

2.3.1. Non-life insurance

The gross premium income realized by nonlife insurers, domiciled in the Republic of Bulgaria, with the right of access to the single market44, at the end of 2022 amounts to BGN 2,942 million, incl. BGN 2,917 million on direct insurance and BGN 25 million on active reinsurance. On an annual basis, a growth in gross premium income of 13% is reported, which is mainly due to the growth of premium income under insurance "Other insurance in connection with motor vehicles" ("Auto Casco"), "Assistance", "Credit and guarantee insurance" and premium income under insurance "Property insurance against fire and other disasters". In 2022, in the structure of the portfolio of non-life insurance companies, the major share of 67% was held by motor insurances, with motor third-party liability insurance accounting for 39%, and the share of other motor insurance (Casco) insurances was

The gross premium income recorded by life insurers at the end of 2022 reported a minimal increase of 4% on an annual basis and at the end of 2022 amounted to BGN 519 million. Regarding the structure of the portfolio of life insurers by classes of insurance at the end of 2022, the following dynamics is observed: the main share in the structure again belongs to Profit share insurance (28%, compared to 27% for the previous year), the share of Index-linked and unit-linked insurance has decreased (13% compared to 31% for the previous year), the share of Other life insurance has increased (24%, compared to 19% for the previous year), as well as the share of Medical expenses insurance (20% compared to 15% for the previous year)

SECTORS

The Cypriot Insurance Market is on track for high performance

By

The aggregate figures for 2023 regarding the production in the Cypriot Insurance Market, confirm the dynamics of the Insurance Industry, which continues to run at high rates.

The total production in 2023 amounted to 1,2 billion Euros, from 1,053 billion Euros in 2022, an increase of 14,2% with the Life Sector presenting a higher performance. Production in the Life Sector amounted to 623,120 million Euros, from 520,07 million, an increase of 19,8% which follows an increase of 14,7% in 2022, compared to 2021. In the General Sector, production in 2023 amounted to 581,377 million Euros, from 533,172 million in 2022, a change of 9% which follows an increase of 4,1% in 2022, compared to 2021. As far as the General Sector is concerned, increases in premiums, due to the inflationary pressures, that affected the cost of repairing damages (e.g. vehicle spare part), also contributed to the increase in production.

“The market is moving”, commented at “Next Deal” the General Manager of the Association of Insurance Companies of Cyprus, Mr. Andreas Athanasiadis.

Mr. Athanasiadis underlines that the increase in production was favored by the increase in insurance premiums, due to inflation, but there is also an increase in new activities. Due to the low interest rates of the banks, some people turn towards buying a savings / investment product.

“In general, we are going through

a period of healthy growth in the insurance market”, he emphasizes.

Positive Assessments

It is estimated that the rapid pace will continue during the coming years, as the economy will continue to expand at rates of more than 3% until 2027. The perspectives concerning the real estate market remain positive and the country is favored by the presence of thousands of new workers in the sector of technology.

The provision of insurance protection consists part of their salary package. The market is also boosted by the multitude of large infrastructure projects financed by the European Recovery Mechanism (gas terminal, new highways, construction of a new Cyprus Museum), as well as private projects (marinas, golf courses, mixed tourist developments, high-rise resi-

dential buildings, photovoltaic parks), which are covered by insurance contracts both at the stage of construction and operation.

Additionally, the excess liquidity in the economy does not have many options for utilization in an environment of low interest rates from the banking sector (particularly when ECB has signaled the start of its interest rate cuts) and without the supply of products, such as mutual funds. Interest is also low for the Cypriot stock market, although in 2024 it moves in a more dynamic way, due to banking shares, with the daily amount of transactions remaining low (around 500.000 Euros). Buying an insurance product is the only low-risk alternative in order to achieve significant returns. The provision of a high tax exemption (up to 35% of the annual insurance premium) works as an additional incentive.

The Guarantee Fund

Confidence in the insurance industry is expected to be enhanced by the establishment and operation of a guarantee fund, for the protection and compensation of policyholders and insurance indemnity beneficiaries, in the event of the liquidation of an insurance company that operates in the life insurance sector and it is not possible to transfer the portfolio to another life insurance company. The relevant bill passed in April, but it will take some time to work in practice. The bill was supported by the Association of Insurance Companies and the Pancypriot Association of Professional Insurance Intermediaries.

According to the Insurance Companies Control Service, the guarantee fund maintains citizens' trust in the insurance industry, in the event of the collapse of a life insurance company.

It is noted that an effort had been made, at a European level, in order to create a unified plan for insurance guarantees, but there was no agreement among the member-states to introduce a relevant provision in the Solvency 2 directive and the issue was left to be regulated at a national level, depending on the needs and conditions of each member state.

The legislation provides for the following:

• Establishment of a compensation organization, in the form of a legal entity with limited liability by guarantee, under the name “Life Insurance Guarantee Fund” (Fund), for the purpose of paying compensations in the event of the liquidation of an insurance company activating in the life insurance sector.

• Members of the Fund will be the insurance companies licensed to operate in the life sector, having their headquarters in the Republic of Cyprus, branches of insurance companies from third countries that have a license to operate in the life sector all over Cyprus, as well as insurance companies that exercise the right of free establishment in the Republic of Cyprus and have a license to operate in the life sector,

our Correspondent in Cyprus, GIANNIS SEITANIDIS

as long as they are not covered by corresponding guarantee funds in their country of establishment, for their operations in Cyprus.

• Conclusion of a basic agreement between the Fund and the Ministry of Finance, which will define the terms of operation, the procedure for submitting a claim and payment of compensation, the amount of payment per insurance policy and per beneficiary, the financing of the Fund, as well as the methods of paying contributions by its members.

• The sector of life insurance of group pension plans is excluded from the regulations, for reasons related to ensuring the viability of both the Fund and the insurance companies that will contribute to it.

• Non-coverage by the Fund of insurance compensation claims submitted by an individual who served as a member of the board of directors of an insurance company under liquidation within the last five years, by a person who is responsi-

ble for or contributed to the deterioration of the financial situation of an insurance company, as well as by legal entities.

• The Fund does not cover legal entities, following the recommendations of the European Insurance and Occupational Pensions Authority (EIOPA), as well as the need to ensure the viability of the Fund.

• Possible amendments to the basic agreement will be made following the bilateral agreement between the two parties and not unilaterally by the insurance companies that are members of the Fund.

• In the event that the percentage of insurance claims that the Life Insurance Guarantee Fund is required to pay, as calculated by the Commissioner of Insurance on the date of appointment of the provisional liquidator, exceeds fifty percent (50%) of the total claims of the insurance company under liquidation, the Life Insurance Guarantee Fund appoints the liquidator.

Production of General Insurance Industry in 2023

Production of Health and Accident policies by Life companies, is included. The

• In the event of payment of any amount due to liquidation of an insurer, the Life Insurance Guarantee Fund has the right to claim its recovery as a creditor of the insurance company, together with all other creditors of the company claiming under insurance policies.

The Financing

The Fund will be entirely financed by its members, without additional charge to the contracted consumers and is designed in such a way as to cover the beneficiaries, but not to bring on any significant costs for the insurance companies that contribute to the Fund, to the extent that causes a burden on their financial situation.

Most of the corresponding guarantee funds of other member-states operate on the basis of contributions from insurance policy holders, which are imposed on their insurance contracts. However, in the case of Cyprus, the insurance companies, in order to avoid charging their consumers, have chosen, during the initial stage of the Fund's operation, to support it financially through their profits.

In relation to the issue of not charging consumers with additional charges for financing the Fund, representatives of the Insurance Association of Cyprus reported to the Parliamentary Finance Committee that insurance companies do not approach the issue tempo-

rarily. In particular, the insurance companies, recognizing the imperative need for the operation of the Fund and taking into account that any additional charge to their customers would constitute a bad practice, decided to absorb the financing costs of the Fund, especially during the first phase of its operation.

In the event that, due to the payment of large compensations to beneficiaries, the Fund is required in the future to increase the contribution of its members, the circumstances may also cause some consequential increase in the insurance premium, but this is not the intention of the insurance companies for the time being.

Insurance industry: Challenges and opportunities in a dynamically changing environment

The insurance industry is trying to balance the challenges from the macroeconomic environment after and stabilization of markets, the investments in digital technologies and automation, the extreme weather events, and the cost of reinsurance and all this under the light of strict and ever-increasing regulatory compliance and intense competition.

Acquisitions

and mergers

With interest rates stabilizing, insurance organizations are expected to shift from a passive acquisition approach to a more strategic one by divesting non-core or non-performing businesses, to acquiring businesses that offer new opportunities both in terms of revenues-market share and cost reduction per unit.

Despite the significant number of recent Deals, we believe that this trend will continue strongly, especially in markets such as Greece, because the number of multinationals remains large in relation to their size or market size where the existence of an insurance company and commitment of high-risk capital is not supported by best practices or investment strategies.

Considering the transactions that have taken place in recent years, we believe that the interest is there, and the money

offered is satisfactory, supporting a momentum of opportunities that should not be left untapped, especially by smaller market players. If the size or organic profitability is not satisfactory or the maintenance of any adequate profitability level is not supported through the necessary investments, then disinvestment and alternative use of funds is considered an optimal investment option.

The one-way road for digital transformation with technical intelligence

The Insurance Industry has realized the importance of digital transformation with AI. Management and shareholders expect that AI can revolutionize day-to-day operations from both automating claims and underwriting shifting focus on communicating with policyholders, to enable efficient and accurate pricing and accurate decision-making. Every company operates differently so how AI can be implemented varies.

Attracting and retaining talent

Finding and retaining technology-enabled employees is also a strategic choice for insurers seeking to create a customer-centric business model that requires the collection

and management of valuable data, with the biggest challenges facing smaller companies. To address the talent shortage, employees with sufficient knowledge of new technology should be attracted, but at the same time upskilling existing employees.

Risks from extreme natural phenomena and opportunities

Severe extreme weather events in 2023 highlighted the importance of insurance. The frequency and severity of natural disasters have led to higher insurance claims and losses for insurance companies and the public states. Worldwide and mainly in the USA, some large companies have withdrawn from regions while insurance premiums have increased around the world and in Greece too. This trend is expected to continue in 2024 and the following year as well.

Prospects

The insurance industry has a promising future if it is flexible and innovative in its approach. By embracing new technologies and meeting the changing needs of customers, insurance companies can remain competitive in a rapidly evolving landscape.

Where did the insurance companies invested in 2023?

Mutual funds attracted insurance companies for placements in 2023, which increased by 1,274 billion Euros compared to 2022. At the same time, a decrease in placements was observed in Greek bonds and stocks, despite the festive atmosphere in the Greek stock market and bonds, caused by the prospect of the investment grade recovery.

High-ranking executives of the insurance market stressed out to “Next Deal” that the Greek stock market is still extremely shallow and it will take time after the regaining of the investment grade and the stock market to become deeper, for the insurance companies to invest more capitals in Greece. It should be noted that this did not go unnoticed by the President of the Capital Market Commission, which almost a year ago had invited insurance companies to turn their attention to the Greek capital market.

As it is emphasized by the above, insurance companies are the largest long-term institutional investors that contribute to the stabilization of markets and provide liquidity even in times of crisis, investing 17,4 billion Euros or 9,6% in terms of GDP.

The assets of insurance companies in 2023 increased to 20,288 billion Euros, from 18,718 billion Euros at the end of 2022 (+8.39%), while equity capitals from 3,225 billion Euros at the end of 2002, reached 3,351 billion Euros.

In detail, the value of the total placements of insurance companies in debt securities slightly increased to 10,557 billion Euros at the end of 2023, against 10,509 billion Euros in 2022.

But the value of placements in Greek government bonds decreased by 507 million Euros, to 3,132 billion Euros, from 3,639 billion Euros at the end of 2022. On the contrary, placements in foreign bonds increased by 555 million Euros, reaching 7,425 million Euros.

The value of total investments in mutual fund shares in-

creased by 1,274 billion Euros, reaching 5,398 billion Euros, compared to 4,124 million Euros in the previous year. The value of total investments in shares and other means of ownership, increased to 881 million Euros, against 712 million Euros in the previous year. But the value of investments in Greek shares decreased to 438 million Euros, from 441 million in 2022, while on the contrary, placements in foreign shares increased significantly to 443 million Euros, from 271 million Euros. The total deposits of insurance companies decreased by 263 million Euros and amounted to 957 million Euros at the end of 2023, a drop caused by the reduction of deposits in foreign credit institutions by 272 million Euros, while a small increase of deposits was observed in local credit institutions, by 9 billion Euros.

Howden Hellas

Greek presidential Guards stand in front the Parthenon temple atop the Acropolis hill during a ceremony marking the anniversary of the liberation of Athens from Nazi occupation on Oct.12, 2016

By EVANGELOS G. SPYROU

“Kyvi”, means “head” in the ancient Greek language and from this word comes the word “governor”. “The governor is the head of every voyage, with momentum and intelligence, both at sea and in the air”, we read in the book “The Word Within the Word”, by the author of Anna Efstathiou-Tziropoulou. The navigators put their hands and mind to the oars and the wheel, we read in the Orphic Argonauts. You rule with hands and mind. The word “govern”, the Latins imitated it in “guberno”. “You have manifested Mind, the ruler of the world”, writes the Greek poet Kostis Palamas about goddess Athena. Both the ship and the plane have a helm. The word “governor” is used by a lot of people, when referring to the directors of insurance companies.

By copying Greek words, the Westerners called the pilot or governor CAPTAIN from the Latin CAPUT = head which is a copy of the Greek word kapys = breath, spirit (breathe out). In German KAPUT = perished. Thus, we have the captain, CAPITAINE, CAPITANO where he is the “kapys”, the head of the ship, the boat, the aircraft and the spirit that leads the crew to the port and the airport... The governor after all is “the captain of sailors and mariners, the one who is at the helm”.

In Homer we read (Rhapsody 0410 in the Iliad) that "the wood of the ship is straightened with the admonition of goddess Athena. Like the flitch of a ship, is straightened in the hands of a worthy craftsman, who knows his art well, with the advice he receives from Pallas Athena...”. It takes God's blessing to make the Governor worthy in hands and Mind, so that he may rule well while sailing.

In short... governmental actions on insurance

The reason I wrote all this, is for the new governors at ETHNIKI, ERGO and ALLIANZ (Mazarakis, Moatsos and Christidis) who recently took over, as new captains, the "boats" of these three large companies, to have it in mind, but also for the older captains of the other companies in the Greek insurance market to remember. We often forget in everyday life the common vocabulary of the wise, but also the folk wisdom...

So I dedicate these… “in short” to the new and old chief captains of the insurance companies, so that they may literally march by their Mind, guided by their Mind and govern over their “sailors”, their crew. They are the people who know that "there are a lot of terrible things, but nothing is more terrible than man” (Sophocles' Antigone). I also write for those who manage or will manage, but also about their behavior towards their staff-

customers. People are not numbers, accounting books, car metal sheets, "corpses" to step on in order to climb high... A lot of people in the past made the mistake to ignore fundamental truths and... disappeared. It is smart to remember that our “past” cannot be erased even by God..! Mistakes and history are written, so that they don't happen again. Nextdeal.gr does not wish to remind them, but will do so if necessary...

Congratulations to the Secretary of Finance, Mr. Haris Theoharis. Through his actions, he shows that he is in alliance with the insurance industry. The President of the Hellenic Association of Insurance Companies, Mr. Alexandros Sarrigeorgiou, can capitalize on his positive behavior. An excellent job was also done with the Committees he created for the uninsured, the Professional Insurance Funds and Road Tax, making good use of his knowledge and experience in the insurance industry, as well as of experienced executives.

My prediction is that from June 2024 onwards, our insurance market will turn into “something else” than what we knew so far... Let's all try to shift to the right side of history. Reality caught up with developments earlier... Let's become insurers again. We got away with the stock exchange markets, health, Unit Links, mutuals, stockbrokers, annuities, non-career insurer contracts, the temporary nature of accounting, with the “flatterers” of the Generals Directors, the “fake” press releases... The insurance market has lived long enough in a field of “prodigal sons”. Time to go back to the insurance and protection in the implementation of insurance sound science...

Robert Gauci's tenure at “ETHNIKI” Insurance was of a positive sign, regarding the effort to transform the company towards its new role in the market, despite the obstacles he faced, caused by internal and external factors that have plagued for years the historic and leading company in the Greek market. He was

Greek presidential Guards stand in front the Parthenon temple atop the Acropolis hill during a ceremony marking the anniversary of the liberation of Athens from Nazi occupation on Oct.12, 2016

Mr. Dimitris Mazarakis Mr. Errikos Moatsos Mr. Vassilis Christidis

The Secretary of National Economy and Finance, Mr. Haris Theocharis

Mr. Robert Gauci

noble and a supporter of the idea for “ETHNIKI” to increase its clientele and protect it with coverage. Some new executives of “ETHNIKI”, didn’t seem to be “helpful” in their role for Robert Gauci, so he failed to resurrect sooner the dream of “ETHNIKI”’s people. Of course, some will find the opportunity to apply in practice the motto “on the fall of an oak, every man gathers wood” and say something recklessly. I hope that the new leaders will take a “helicopter” look at the role of the large company in Life and General Insurance and restaff the General Insurances, where “ETHNIKI” has always had a leading role (today the Life Insurances prevail). There are valuable executives within the staff of the Generals Insurances, to be utilized in a broader way and stop the layoffs. Finally, the executives of both, Life and General Insurances must support the new CEO Mr. Dimitris Mazarakis, showing their “loyalty”, while simultaneously to cease filing reports, real or fake, to the shareholder, fact that will perhaps torpedo the group spirit... (something that happened a lot of times in the past). Let me also remind you that many large and tall trees did not fall from lightning or winds, but from internal “woodworms”. The great tree of “ETHNIKI” must remain higher than the others, green, strong, with many people under its shadow. We think that the conditions in terms people and funds are to create a great “ETHNIKI”.

These “careless” little games with the deals between companies and agencies will cost dearly to both sides in the future. I’ve learned that deals are made “in the balance”. Some of them don’t even know each other. Production by all means, is not the solution... “Get out of there and come to me”, will cost dearly. I repeat, take a look at the past... Those who put their finger in the honey will do it again. Watch out for “bloody” transfers. Look after your colleagues and don't blame them for poor and often production. Don't hurt them, don't slander them, respect their hard work. And don't ask me if what I write is addressed to someone specifically. Many of you may feel sensitive about the accusation. We all know about you, you can't hide for long. We are in the same boat, don't poke holes, we will drown.

Guard your networks and your people from internal and external enemies. And don't let the “wolves” to look after your “little sheep”. Also, pay attention to the role of those moving from companies to agencies or among agencies. First, it’s not kind, and second, they do NOT add, but usually subtract. Pay attention to the cost of acquisition... Many have lost the game due to their carelessness... The CEOs should also sometimes bawl at the Sales Managers who do not develop new partners, but instead, they live by “recycling” old materials and “second hand” staff. The “bloody” wars among agents should stop... In the end, all will lose...

Let the Agency insurance companies beware of the “hens” that lay “golden eggs”. They take novices and turn them into stars. Attending the various companies’ conferences, I notice that the Directors-Inspectors have developed people, as their prize. Dimitris Kontominas used to tell me that a competent insurance manager is the one who effectively developed people. I had developed several people at “INTERAMERICAN” in the past, such as D. Dimakis, T. Thomopoulos, K. Kouveliotis. Today I admire, among others, two important friends of mine, Mr. Giorgos Foufopoulos at “ETHNIKI” Insurance, who constantly “brings out” successful insurers. In 2023, he made a new production of about 7 million in Life Insurance and 4,5 million in General Insurance. He has a portfolio of around 70-75 million, i.e. more production than 3-4 insurance companies. Around 55 of its insurers were awarded at the “ETHNIKI” conference. The other friend is Mr. Pantelis Pitoglou at “NN”. This year, more than 60 of his people were awarded at their conference. His new production in Life Insurance exceeded 4 million Euros (his office only) and around 3 million Euros in General Insurance. In total, the portfolio of people he developed exceeds 75-80 million Euros. These people are shining stars in our Greek insurance market. Our congratulations!

I hear that the Panhellenic Federation of Insurance Intermediaries is unhappy with the behavior of some unions. I also hear that the... battle for the “chair” has also led to “slanders” among presidents and to “deceptions” regarding who is the great representative of the intermediaries in Greece and Cyprus and that this kind of “backstabbing” has also reached Europe and Cyprus... I don't believe that everything I hear

In the first four months (January-April( of 2024, with an average of 17 minutes and 3 seconds, Nextdeal.gr held the leading position in the average stay of readers of the Greek insurance market. The others, from the second (Private Insurance) to the ninth media, stood between 2 minutes and 28 seconds and 14 seconds the last. The figures show that our news is being read and our journalists' articles are being studied. The advertising presence is definitely effective in this regard. Our site www.nextdeal.gr is also the champion of total visits.

is true. After all, who represents intermediation? Does Panhellenic Association of Insurance Consultants exist? The Association of Greek Insurance Brokers is currently under liquidation, the brokers were separated from the agents and some who have double duty were settled. The Panhellenic Federation of Insurance Intermediaries complained to the Hellenic Association of Insurance Companies about the suspension of contracts and other

In April 2024, over 102.500 unique users entered nextdeal.gr (the other 8 remained below 42.000). Thank you and we promise to continue to offer you timely and valid information for the sake of our insurance market. We are also waiting for your comments, in order to improve our responsibility towards each one of you. We wish you every success! See the April 2024 average stay chart here.

related matters. What is the opinion of the other Unions or is everything ok? I guess I should go into details, in the next issue!

A proposal of Nextdeal.gr concerning the Hellenic Association of Insurance Companies:

The “explosive” production of January-March 2024 also has also “weaknesses” that those of us who care about the future and read the "fine print" of the Press Releases, must take seriously into account. First, regarding the Life Insurance production, we notice that out from the 687.845.019,15 € of the total production, 293.933.178,83 € (a percentage of 42,7%) is Life Insurance linked to investments, a change of +61% compared to 2023. Second, these numbers do not give profits to companies and satisfactory income/ commissions to insurers. The Board of Directors and the members of the Hellenic Association of Insurance Companies should investigate whether these are one-off or periodic payments, but also if it is the production of Banks or insurance companies. We should look into the matter early enough, for other reasons as well. UnitLinked contracts and their future, need special attention.

“Elsewhere the hens cluck and elsewhere they lay eggs”. A very wise saying! Executives come and go in the market, but few of them survive! Also take a look at Generali which is constantly growing as a company, regardless of sales or administrative staff. Good name, prestige, structures, governance, philoso-phy, management principles, are of great importance. Mr. Panos Dimitriou gathers production and a healthy portfolio, moving and leveling up. Mr. P. Dimitriou is a strong and good ambassador for the insurance industry, whose presence in the economy should be utilized in a more wide way.

From September, ATTICA Bank with its partnerships is expected to appear more often in insurance events. SYNDEA and another insurance force will probably star there as well. Mr. Dimitris Zorbas has a lot to offer...

A certain company reminded me the story of SAMPSON and DALIDA. If executives and leaders do not pay attention, they will get lost when the “building” will collapse... Master craftsmen are important for the “buildings”.

Mr. Panos Dimitriou

Mr. George Foufopoulos

Mr. Pantelis Pitoglou

At the top of reliability

Won first place, for the eighth consecutive year, in the Solvency Index of General and Life Insurance Companies

What strategic measures is your company taking in order to contribute to the desired objective of increasing the insurance market as a percentage of GDP?

Strategic Measures to Boost Insurance Market Share of GDP:

Atlantic Union is actively contributing to the growth of the insurance market and its share in Greece's GDP, a long-standing goal that involves various stakeholders including insurance companies, the Hellenic Association of Insurance Companies, Department of Private Insurance Supervision by Bank of Greece and the government itself. Given the current volatile environment marked by emerging risks such as climate change, wars, and economic turmoil, there is a heightened sense of threat but also new opportunities for the market to address with suitable products.

To enhance the market's GDP penetration rate, which has remained just above 2% for decades, we need to look at the practices of more developed countries. A primary concern should be fostering insurance awareness among Greeks from an early age, building trust in insurance institutions, and reducing insurance illiteracy. Atlantic Union, through my proposals, has suggested institutionally at least twice, the introduction of school lessons on the importance of private insurance. It is also crucial to stop the habitual reliance on government aid following disasters. Recently, the government's decision to offer a tax reduction on property taxes (EN.F.I.A.) for insured homes is a step in the right direction, which is expected to make insurance more accessible and appealing, along with rumored incentives for businesses and measures to address uninsured vehicles.

At Atlantic Union, our main strategy is to ensure that we offer a reliable and solvent company to those who choose and trust us with their insurance, providing them with the certainty that our company will be next to them in every difficult time that they will need their insurance company. This is evident form the fact that we have achieved the highest Solvency Ratio (288%) among all General and Life Insurance companies for the eighth consecutive year. We maintain long term collaborations with the biggest reinsurers highly rated, who achieve optimal risk distribution

We maintain long term collaborations with the biggest reinsurers highly rated, who achieve optimal risk distribution worldwide. We also adapt to market needs by developing new products or adjusting existing ones. A "digital ecosystem" has been developed to facilitate interactions with our partners and clients, embracing any incentives provided by the State

worldwide. We also adapt to market needs by developing new products or adjusting existing ones. A "digital ecosystem" has been developed to facilitate interactions with our partners and clients, embracing any incentives provided by the State such as the recent “EN.F.I.A.” tax reduction for insured homes, as already mentioned, enhancing them with additional facilities on our part to make insurance even more affordable and attractive.

Finally, we are rapidly adapting to the new requirements for the modernization of the Financial Departments of insurance companies, to the transition to the new form of disclosure of financial data, to the inclusion of the prescribed factors for measuring the ethical and environmental impact of investments in our company (ESG) taking care of nature and the environment, while at the same time our Company takes care every day to show its human face to the Employees, to the Network of Partners and to the Society as a whole What are the company's goals for 2024 in terms of productive results, expansion of operations and partnerships, new products and services.

Goals for 2024: Production Outcomes, Business Expansion, and New Products/Services: 2023 was a very good year for Atlantic Union. We achieved our goals at all levels and this gives us the motivation but also creates the obligation to target even higher this year. Our overall production growth rate for 2023 is set at 14.40% while for 2024 it is set at 15.5%, with particular emphasis on a balanced combination of policies across all Lines. Since last

year, the foundations have been laid for even greater participation of General Insurances Sectors (besides motor), as well as Life & Health Branch. Our Company has a mixed operating license since its establishment and we consider this as an important responsibility on our part to provide solutions for all the insurance needs of our customers. Over time, the main channel of our work development is the Network of Insurance Intermediaries, to whom we express our appreciation and provide our full support for their work. Our goal for 2024 is, on one hand, the further development of our Network, with the parallel creation and distribution of new products as well as the improvement of existing ones. At the same time, we have launched the enrichment and development of modern digital or non-digital tools that will make the everyday life of our Partners and Customers easier and more efficient (modern site, portal, mobile applications, provision of web services, etc.). Regarding economic development of our collaborators, we have created an even more profitable Remuneration & Incentives Regulation, while we further enriched our Training Policy, both in matters of mandatory certifications and in terms of general training. Finally, we would like to emphasize to the customer-oriented approach that characterizes our company’s philosophy and mentality, which places the customer at the center of our interest and leads us to reward his choice of more than one of our products as well as our long lasting, loyal relationship.

Στη Howden Hellas

HOWDEN HELLAS

Dimitris Tsesmetzoglou CEO,Howden Greece & Cyprus

We are by far the largest Intermediary in the country

How do you see the current market trends in Greece and how do you think they will affect the intermediation (Brokers/Agents) sector of the insurance industry?

The whole insurance Eco system is currently undergoing major vertical changes. For the first time in the past few decades (or at least during my career) the Greek Economy is recording sustainable positive growth at its core, with fundamental changes in its structural inherent problems. We observe active consolidation trends in most of our corporate clients’ industries with major multinational and global industry players entering the market or Financial institutions leading the consolidation play only to pass it down to the industry players at a later stage. Although there was significant consolidation that has already taken place amongst the local insurance companies, in my opinion there is still a further leg of consolidation that is likely to take place in the next couple of years at the latest. Following the long 20-year long Soft Rate Market in Greece and the recent serious losses due to hurricane Daniel, we entered a Hard Market last year and I believe it’s here to stay for at least another 2 years. Ever strengthening signs of climate change are making insurers’ job harder than ever. Existing challenges around Cyber risk are supplemented by new Risks coming from more active implementation of AI in our lives, and all these are here to stay. With all the above developments over the last couple of years only Greece is experiencing a PERFECT STORM.

What do you do at Howden and how do you address all the above described?

As Howden, we have set the

scene for this a long time ago albeit we did not expect them to all happen in such a short period of time:

• Being the only true consolidator of the market with more than 15 transactions concluded in the last 24 months, we created the size and capacity to address the recently formed new needs of the risk capacity providers and our clients. This became possible so rapidly and so successfully because we chose to join forces with the top professionals and the best businesses in the market, with each one bringing their valuable contributions in our Howden matrix. I often say I had a company called Matrix and now that we joined Howden we are creating the True insurance Matrix in Greece.

• With over 230 professionals working from 6 offices across Greece we are the only 100% vertical solution in Greece, with the best talent and expertise offering in Insurance, Reinsurance, Risk Advisory, Legal Claims professionals, Risk Engineering department and a turn key solution provider for Bankassurance in the market.

• We launched Howden Agents Greece with a clear strategy to capture the existing opportunity in Life and Health segments. We want to make a difference in the agency space by creating a unique platform offering again under the leadership of those who we believe are the best professionals in the market.

• We have recently entered the Marine Space attracting talented players and in less than 12 months we positioned ourselves amongst the Top 3 Marine Brokers in Greece according to our estimates.

• We have investors that want

Although we are by far the largest Intermediary in the country, I assure you, we are just getting started. I strongly believe that our success is down to one clear management line which puts us in the unique position to take advantage of the opportunity Greece currently offers. We have the Perfect Platform to capture the current opportunity, and we want to hear from professionals that feel the change, share our vision, but most of all fit our Howden culture. So yes, us at Howden we are uniquely prepared and ready for any Storm

to enter Greece and through our expertise and professionals we help them enable capital investments in a credible manner whilst ringfencing their investment to allow more flow.

No matter how good, how committed and how intelligent a Single professional is, the new era we live in calls for a resilient, credible and professional Corporate service provider who is there at all times and cannot afford the risk of a single individual panacea solution.

At Howden Hellas we are focused, determined with a clear

strategy and plan. Although we are by far the largest Intermediary in the country, I assure you, we are just getting started. I strongly believe that our success is down to one clear management line which puts us in the unique position to take advantage of the opportunity Greece currently offers. We have the Perfect Platform to capture the current opportunity, and we want to hear from professionals that feel the change, share our vision, but most of all fit our Howden culture. So yes, us at Howden we are uniquely prepared and ready for any Storm.

A strong “vote of confidence” in the Greek economy

“Free field” for growth, in conditions of financial stability

Once again a champion in development for 2024 in the E.U. Inflation and the current account balance are the major sticking points

The Greek economy has, at least for the next few years, a “free field” for growth, in conditions of financial stability, under the proviso that there will be no serious escalation in the Middle East or other unforeseen negative developments in the turbulent geopolitical environment. And under one significant condition: That reforms will be implemented in critical areas –from taxation, to the justice system, health, competition and the labor market.

This is the common conclusion deriving from all the reports and estimates made public recently by the International Monetary Fund, the Standard & Poor's Rating Agency, foreign investment houses and Greek Institutes.

The Greek Economy will hold in 2024 as well, one of the leading positions in development within the EU. In 2023 we had a growth of 2%, when the rest of Europe had 0,4%.

The contribution of the Recovery Fund’s resources, is expected to be of crucial significance.

From the Recovery and Resilience Fund, Greece has received up to the third payment request, an amount of 14,9 billion Euros, i.e. 41% of the total program, while the European average is 30%. Within April, we had the fourth payment request for loans of 2,3 billion Euros and within May the fourth payment request for grants of 1 billion Euros.

The steps forward

The Greek economy has made a significant progress. Some indisputable facts about the Greek economy are the following:

• The growth rate in Greece is five times the European average.

• During the period 2019-2023, real GDP per capita has increased by 9,9%, more than twice the European Union average of 4,8%. In the years 2021, 2022, 2023, the cumulative increase of the real per capita income in Greece, stands at the impressive percentage of 18,6%. It is the third highest performance in

the EU and, of course, far above the European average of 9.4%.

• We recorded the largest capital inflow of all European countries in terms of GDP, at 16,88%.

• Foreign direct investment (FDI) in Greece has seen a large increase over the past three years, compared to the previous period, according to a recent OECD report. From an average of 4,15 billion USD in the three-year period 2017-2019, it reached 6,7 billion USD in the three-year period 2021-2023, marking an increase of 62%, since the Greek economy recorded significant growth rates.

• Ten major privatizations took place within nine months, with revenues reaching the amount of 7,1 billion Euros.

• Deposits increased by 50 billion Euros from 2019 to date.

• Over 400.000 Greek citizens have been employed in recent years.

Estimations for the course of main sizes

GDP: IMF predicts a growth of 2,1% this year and 1,9% in 2025, IOBE foresees this year's growth rate at 2,1%, while S & P estimates that the Greek economy will grow at an average rate of 2, 4% in the five years 2024-2027.

Despite the downward revisions, in some cases, these growth rates are significantly higher, up to twice as much, than the corresponding ones predicted for the Eurozone countries.

The Greek economy remains resilient and is expected to grow at a rate of 2% this year and 2,5% in 2025, since the rising in employment and real wages, as well as the potent tourist and strong tourist flows, reinforce consumption, according to the OECD's six-monthly report.

Goldman Sachs estimates that the Greek economy is in a strong position to consolidate its growth dynamics, although investments as a percentage of GDP remain 30% lower than the Eurozone average. The latter, however, could grow at twice the rate of the Eurozone in the two years 2024-2025, if the absorption of the Recovery Fund's resources reaches the rational 80%.

Surpluses-Debt: The IMF forecasts primary surpluses consistently above 2,1% of GDP from this year to 2029, a budget deficit below 1,5% of GDP for the next five years and a reduction in public debt to 138,8% of GDP in 2029, from 168,8% in 2023. S & P estimates that Greece's fiscal performance remains strong and that the medium-term target of a primary surplus of 2,1% of GDP will be reached this year, marking the end of the period of fiscal consolidation for Greece, after the pandemic.

The Sticking Points

Inflation and current account balance remain focal risks in the highlights of international and domestic houses and organizations.

One of the “vulnerable” points of the Greek economy is still the current account deficit, according to the S&P reports, despite its noticeable improvement last year (mainly due to the decline in energy prices) to 6,4% of GDP from 10,3 % in 2022.

For the period 2024-2027, the deficit will remain (on average) at 5,4% of GDP, according

to the American Rating Agency, which considers the level of inflation in our country to be high.

As far as inflation is concerned, the IMF predicts that it will decrease to 2,7% this year and to 2,1% in 2025, while IOBE has revised upwards to 3% (from 2,8%) its new estimate for 2023, pointing out that price increases in Greece are higher than the Eurozone average. Inflation will continue to decline, but at a slower pace and is expected to fall to 2,1% in the final quarter of 2025, according to the OECD.

The OECD emphasizes that the main challenges that the Greek economy is facing, are the strengthening of productivity and fiscal adjustment due to high debt.

It is also noted that in order to continue reducing the debt, alongside the high spending that is necessary due to the low investment during the decade of the crisis, the aging of the population and the handling of climate change, sustained and strong economic growth will be of essential importance.

Productivity growth, which is a third lower than the OECD average, would simultaneously create more fiscal space and raise living standards.

The Stability Program

In the Stability Program submitted to the Commission, a growth rate of 2,5% in Greece this year and 2,6% in 2025 is predicted. These forecasts are based on the increase in private consumption on an annual basis by 1,6% in the two years 2024-2025, mainly due to of increasing disposable income, from rising wages and falling inflation.

Regarding the fiscal sector, the target for the primary surplus is set at 2,1% of GDP for the two years 2024-2025, while the public debt will decline to 152,7% of GDP at the end of this year. On the inflation front, forecasts for an average speed of 2,6% in 2024 remain unchanged, while for 2025 a further deescalation of pressures to 2% is predicted.

EAEE

1.1.2023

Έναρξη

IFRS 17

Entry into force of IFRS 17

16.1.2023

Δηµοσίευση

16.2.2023

Inclusion of insurance companies in the Digital Work Card.

Release of the set of instructions for the application of myDATA in the insurance sector, in collaboration of the Hellenic Association of Insurance Companies with the Independent Authority for Public Revenue (IAPR).

24.4.2023

24.5.2023

(Retail Investment Strategy) -

lobbying

Proposal for a RIS (Retail Investment Strategy) directive – Continuous lobbying.

28.6.2023

2023/July 2023

Signing of a two-year Collective Labor Agreement (2023-2024), starting from 1/1/2023.

4.10.2023

Publication of ECB and EIOPA proposals, for the reduction of the natural disaster protection gap in the EU.

Issuance of a FIDA regulation proposal concerning the sharing of financial information – continuous lobbying.

Submission of proposals by the Hellenic Association of Insurance Companies to the Ministry of Finance and the Bank of Greece, for the transposition of MID Directive (Motor Insurance Directive) into the Greek Legislation.

29.7.2023

Ψήφιση

Passage of Law 5045/2023. Enactment of a 10% reduction of the Unified Property Ownership Tax (UNPOT) for the insured residences.

HAIC

The major milestones for the insurance market in 2023

Νοέµβριος 2023/ November 2023 Ανακοίνωση

31.10.2023

Submission of a Report by the Bank of Greece to the Ministry of Finance, on the vulnerability of the insurance sector in the field of money laundering.

Νοέµβριος 2023/ November 2023

Επεξεργασία

Editing of a Draft Code of Ethics by the Hellenic Association of Insurance Companies, on the right to be forgotten (RTBF) of cancer survivors.

Announcement of the Pension Survey results, conducted by Insurance Europe, with the participation of the Hellenic Association of Insurance Companies. Νοέµβριος 2023/ November 2023

29.11.2023

Health Index by the Foundation for Economic and Industrial Research for the year 2022.

Annual Financial Stability Report of the Bank of Greece – Key figures for the insurance market.

13.12.2023

II -

lobbying

Interim Agreement between the European ParliamentCouncil concerning the revision of Solvency IIcontinuous lobbying.

21.12.2023

Passage of Law 5078/2023 for the reform of professional insurance and revocation of tax differences between Professional Insurance Funds and Group Programs.

22.12.2023

( Data Act)

Publication of the EU Regulation for fair data access and fair data use (Data Act).

SYNDEA INSURANCE

SYNDEA INSURANCE

We remain close to society

What strategic measures is your company taking in order to contribute to the desired goal of increasing the insurance market as a percentage of GDP?

As you already know, recently our company moved into a new era and was renamed from Cooperative Insurance to SYNDEA, which is not just a new name, but a new promise, a new contract of honor with our customers and partners.

In achieving the goal of increasing the insurance market, an important strategic choice is extroversion, which of course is not limited to rebranding, but includes a fresh look, innovation, our investment in the future, in new technologies, changing processes and creating new products.

Equally strategically important for us are teamwork, cooperation and respect for people, values that have governed us all these years, and that push us to create products that appeal to everyone, are affordable by everyone and are accessible by everyone.

Zorbas CEO

We have already created two new housing packages, SynetHOME, which is affordable by the average Greek household with comprehensive and generous coverage, as well as an innovative Health program with tele-underwriting, in which the consumer can be insured immediately if there is no need in the questionnaire for further discussion with doctors.

The continuous training of our Partners, the immediate and efficient service and the armoring of our Networks with the necessary tools are also a strategic choice and the only way for continuous development and a successful course.

What are the company's goals for 2024 in terms of production results, expansion of operations and partnerships, new products and services.

From the production point of view 2023 ended with a 5,5% increase and with a positive result of approximately 2 million euros despite Daniel's losses and all this, thanks to the good reinsurance contracts we had.

All this creates a positive growth and for us at Syndea it is very important to be there for people at every stage of their lives, with our comprehensive insurance packages.

Our goals such as capital adequacy, profitability, a high solvency ratio are indeed important goals, but at the same time it is important for us to stay close to society, through a pricing policy that will make private insurance accessible to an ever greater percentage of people, if not to everyone!

For 2024, we aim for a production increase of 6%, giving weight to the Other Sectors, the Property Sector and Health Insurance.

Further, Greek people are no longer indifferent to the climate change, instead they become more and more aware of the need to be insured and think that for €150 a year, it is not worth risking the efforts of a lifetime!

Added to this is the increase in mortgage loans from the banks, which means that construction and new homes are increasing.

All the above create a positive increase and for us at Syndea it is very important to be by the people’s side in every phase of their life, with the comprehensive insurance packages we have available.

Dimitris

INTERASCO It strengthens its presence in health and property

What strategic measures is your company taking to contribute to the desired goal of increasing the insurance market as a percentage of GDP?

Interasco, as part of its development plan, is taking a series of strategic measures in order to increase its share, and consequently the share of the insurance market in relation to the country’s total GDP.

Interasco is committed to providing high quality insurance solutions and building relationships of trust with its agents and customers.

Additionally, Interasco invests in digital technologies to facilitate consumers' access to insurance services. The company expands into new markets and consumer groups by developing innovative products that meet consumers' needs. These tools help to create an environment that encourages the growth of the insurance market and thus to achieve the desired results.

We already know that the insurance industry is constantly evolving, while our forecasts for the prospects of the Greek insurance market are optimistic due to the opportunities that are expected to emerge in the Greek insurance market in the coming period with the improvement of the insurance awareness of Greek consumers in combination with climate change and the expected provision of incentives by government bodies.

Therefore, it is important to remain adaptive and innovative to respond to the market needs and challenges.

We focus on the profitable growth of our company, offering new products and services that meet the needs of our customers.

Interasco is fully prepared for the future challenges and the opportunities, with the support of our shareholder, Harel Group, as well as the support of our agents. Our vision is to play a leading role in the next day in the Greek insurance industry.

What are the company's goals for 2024 in terms of productive results, expansion of operations and partnerships, new products and services?

In 2024, we plan to grow organically, always through our Sales Network, which we wish to expand even further.

We believe in the value of the insurance agents and we are convinced that together we will be able to achieve our goals.

Motor insurance still represents the largest percentage of business in our industry. Interasco’s strategic goal is to strengthen its presence in Health and Property Insurance, taking into consideration the changing conditions due to the climate crisis and to also strengthen Civil Liability.

Therefore, it is important to remain adaptive and innovative to respond to market needs and challenges.

Interasco’s goals for 2024 and for the coming years:

• Increase Profitability

• Offer added value to shareholders, customers and human resources

• Employee training by investing in new technologies and practices

• Evolving technology as cutting edge but still focusing on Human

• Dignity, ethics and respect for agents and customers

Interasco’s position itself is among the most anthropocentric, reliable and solvent companies in the Greek insurance industry.

Carlo Saias CEO

Be.Together

Be Brokers

INSURANCE SERVICES

EUROINS GREECE

10 years of presence in Greece

What strategic measures is your company taking in order to contribute to the desired objective of increasing the insurance market as a percentage of GDP?

Reply from Euroins Greece Branch Director Mr. Vasil G. Dimitrov

At Euroins Greece we are completing this year a very important milestone, our 10 years of presence in Greece. During these years, we have substantially strengthened our ties with both our network of partners and our policyholders based on the quality and reliable services we offer. What we seek on a continuous basis is to integrate the knowledge and know-how we bring as a Group –Euroins Insurance Group is one of the largest insurance groups in Europe – in the development of products and services that will contribute to the expansion of the insurance “pie” in our country.

This is because every company operating in the domestic insurance industry understands the challenge and, at the same time, the responsibility it has to strengthen the role of the services we offer. It is not only a matter of operational development and growth of each company individually. It is a matter of cultivating insurance culture collectively.

The penetration figures of insurance services in Greece are indicative, with production not having exceeded 2.5% of GDP in our country over time. In other comparable markets, such as Spain and Portugal, it exceeds 5%, while in more mature insurance markets such as Italy and Germany the rates even exceed 8% and 9%.

Let us not be pessimistic. Developments here are in the right direction and government initiatives are making a substantial contribution to strengthen the insurance culture. HAIC data for 2023 show that, despite the difficult conditions for the sector across Europe, non-life insurance continues its upward trend with 12% and life insurance with a corresponding 5.7% in our country.

From these data, it appears that the insurance market in 2023 moved more dynamically than the Greek economy, has a higher performance than the country's economic figures, covering the gap left by 2022. However, there is a long way to go if we want to come close to the European averages.

What are the company's goals for 2024 in terms of productive results, expansion of operations and partnerships, new products and services.

Reply from Euroins Greece Branch Director Mr. Athanasios I. Smyrnis

The lag of the Greek market vis-à-vis the European market signals a challenge but, at the same time, an opportunity. The only way to unlock this potential is to provide attractive, competitive, and innovative products. This is the triptych of our growth strategy at Euroins and based on this we are planning our next steps.

In this context, we will expand in the coming period the products we offer to Greek policyholders. To our established vehicle insurance, home insurance and personal accident insurance products, large business insurance, travel insurance and professional liability insurance products will soon be added. At the same time, we focus on expanding B2B sales with strategic partners and customers of the Company.

At the same time, a new development plan is "running" at Group level with the valuable assistance of a consulting company of international prestige. The benefits of this strategic transformation will spread to all countries where Euroins Insurance Group is present, including Greece, ensuring even higher added value for our partners and policyholders.

Mr. Vasil G. Dimitrov Branch Director

Mr. Athanasios I. Smyrnis Branch Director

he estimated that, for the moment, there is a transfer from morning to afternoon surgeries and not an increase in the number of patients served.

• Mr. Gauci's opinion, that the percentage of insured persons is very small. “We have an expense that it is what it is, because people get sick and this expense is shared among a few people”, he emphasized and estimated that increasing insurance awareness will reduce the cost.

• Mr. Veliotis’ proposal for the development of a model, suitable for the Greek reality. Why? Because today the Greek citizen pays twice, pays taxes, pays contributions, pays out of his pocket and pays private insurance as well, for the same good.

Read the full discussion below

COSTIS SPYROU: Health was and still is one of the most important issues that concerns people's lives. Today we have the pleasure of hosting people who are profound connoisseurs of the subject of health, in the context of the initiative of Next Deal and Health Next Generation magazine, in order to discuss the issues that mostly concern health today.

I have the pleasure to introduce our guests: Dr. Vassilis Apostolopoulos, CEO of the “Athens Medical Group”. Thank you for being here with us today. Mr. Robert Gauci, CEO of “Ethniki Insurance” and Mr. George Veliotis, General Manager of “Interamerican Group” and Chairman of the Health Committee of

Insurance Europe, a European insurance organization. And of course Mr. Lambros Karageorgos, Editor-in-chief of Nextdeal.gr. I welcome you all to this roundtable discussion and since our topic is “Allies for Health”, I would like to start with the person who also represents the hospitals, Mr. Apostolopoulos.

I would like you to tell me which, in your opinion, is the biggest challenge that the health system has to confront today in our country?

Dr. Vassilis Apostolopoulos, CEO of “Athens Medical Group”

First of all, thank you for the invitation. I would like to emphasize that I represent the “Athens Medical Group”, which does not necessarily mean that the rest of the industry agrees with my points of view.

Having said that and to get to your question, I think the health insurance industry, to put it simply, has a lot of challenges ahead to confront. The main one is the demographic, which leads to some new data that the actuarial studies apparently have not dealt with.

And of course, the second one is the medical inflation. It is the increase of all costs that we, as providers, have to face and which are mainly due to the inflation that comes from abroad, but also in particular to our own local conditions, with the result that during the last two years we have been practically

absorbing costs continuously, resulting in a significant squeeze on our profit margins. COSTIS SPYROU: Mr. Gauci, which is your opinion?

Robert Gauci, CEO of the “Ethniki Insurance”:

I wish, in my turn, to thank you for the invitation. I believe that it is not only a Greek issue. It is an issue that all developed countries face and it is the issue of the population in general as well as of the growing age. I believe that the word “alliance” is very important, because we have a common enemy. It is inflation that has brought this population and aging problem that is rising and together we must find solutions, through collaborations and through new ways, in order to face in common this enemy and solve the problems of the Greek citizens, of people in general. Because I think there is a very-very important question: how can we make the system sustainable for the next day?

MR. LAMPROS KARAGEORGOS: Mr. Veliotis, if you will allow me, since you also represent Insurance Europe, the European Association of Insurance companies, I have always wondered if Europe faces more or less the same problems as Greece when it comes to matters such as health, either public or private. I'm talking about health issues in general.

George Veliotis, General Manager of Interamerican and President of the Health Committee of Insurance Europe: I also thank you very much for the invitation. I would say that first of all there are no two similar health systems anywhere in Europe. Each state has its own model that it follows. But the general trend is that the private sector is growing and the demand for private insurance is increasing in most countries. Also, public health systems in most countries are slowly falling behind.

Why; Because they have the heavy burden of the pension that they have to carry. So, health and pension together in an aging society is very difficult and it is easier to cut funding in health than it is in pension. This creates queues in many countries but also creates both the incentive for private initiative: the patient can look for better access in the private sector, while it also creates the need for private insurance, either on an individual or on a group basis.

LAMPROS KARAGEORGOS: However, there is a lot of discussion, perhaps also for this reason, about the problems that the public health system faces, both in Greece and in Europe, concerning the cooperation between private health care units and the State and also, from the side of insurance companies, the cooperation of insurance companies with public healthcare units. All this together is

Photo (from the left): The journalist Mr. Lampros Karageorgos, the journalist Mr. Costis Spyrou, Dr. Vassilis Apostolopoulos, CEO of the “Athens Medical Group”, Mr. Robert Gauci, CEO of “Ethniki Insurance” and Mr. George Veliotis, General Manager of “Interamerican” and Chairman of the Health Committee of Insurance Europe.

called PPP, we have and often use this term. Do you, Mr. Apostolopoulos, see a room for growth in this PPP in any form, as far as the health sector is concerned?

VASSILIS APOSTOLOPOULOS: I think you used the rights words: in any form. Because the problem is that if you ask 10 people, policy makers not anyone, what would they see as a PPP, you will get ten different answers. So, I think that for this part there is no specific strategy. It's a mess going on at the moment and please dear gentlemen allow me to say that, as far as the issue of public hospitals and insurance companies is concerned, I think it's a mess as well. Because although the insurance companies will certainly be able to finance the construction of better wards, yet the infrastructure of the hospitals will essentially remain the same: the same operating rooms, the same kitchens, the same machinery and this will essentially deprive the poor patient of hospital beds that the private market will demand. So I think that this is wrong, just as it was wrong at some point when EOPYY (National Organization for Healthcare Services) was launched, that we were asked what would be our opinion if EOPYY could partially operate as a private insurance organization, that is to charge a premium so that in case his patients need to be hospitalized, EOPYY can use this premium to finance the difference in the hospital accommodation class.

I find these to be two totally unrealistic scenarios. What is the reality, is that we, the private insurance market and the private providers, the hospitals, are the main pillars of the private health system, which will always exist in all countries, as it seems. Of course, which will be the optimal mix is a matter for each country, and I think the markets are the ones that will define this mixture and we have to harmoniously cooperate, being like the chicken and the egg, I would say, because none of us can exist by ourselves, in order to face together the challenges and to proceed to partnerships and policies, not in a short-term basis, but in the long term these partnerships to be sustainable and of course mutually beneficial. I think that only this form of cooperation can have a positive impact on the results of the companies, but much more on the people who trust the system in order to receive health services.

One last thing I wish to mention is that at the moment there are distortions in the market which are known and I refer to the rebate and the clawback. After all, the discussion has been going on for years and I wonder whether a measure taken during the years of the Memoranda still exists and maintains its horizontal character, as no discussion has ever taken place either with EOPYY or perhaps with the private insurance companies about the quality parameter. So, at some point, this should also be placed on the discussion table. There are many ways,

there are also KPIs and mechanisms that measure quality. So, at some point, we will have to deal with this issue as well. And, of course, there are distortions such as the sudden entry and the steep increase of the VAT on Health, where from 0% before the Memoranda, now we have reached 24% and I also think that a lot of expenses, including those of insurance premiums, are not tax deductible. Therefore, a system which cannot serve the citizen sufficiently, cannot be forwarded as an alternative and reliable scenario for private health and private insurance, and on the other hand punish the citizen, for making these expenses, not be entitled to any kind of tax deduction.

COSTIS SPYROU: Mr. Gauci, which is your answer to all the above?

ROBERT GAUCI: I think the time has come to take very significant measures so that to create a true complementarity among the various systems. There is no competition between public and private sector anymore. There are needs, there is an infrastructure that is not enough for all the citizens and we have to find solutions so that we can cover all the needs of the people with a mix of different solutions. I refer to the example of the French system, where in the end, the private and the public sector are operating together so we have a public sector that covers the basic expenditure and a complementary one, mutuals and insurance companies, that cover the excessive expenses.

If this cooperation among all players works properly, it will be something sustainable for the Greek citizens as well, in the long term. That's why I believe that we should stop saying “it's the one’s or the other’s fault that the price is rising”! The economy is what it is.

If we play this game together, at the end of the day the customer/the patient will find the solution to his problem.

There are people who cannot afford to go into a completely private sector. Maybe they can find a solution with a hybrid, let’s say, system, but the needs are so great that the only way is to proceed to this collaboration.

One more thing I wish to add, is that I believe that the real issue, referring to the purely insurance part, is that the percentage of insured is very small. We have an expense that is what it is because people get sick, and that expense is shared among a few people.

Those who were insured. If the uninsured paid a percentage of that cost, the total cost of insurance for everyone would be much lower. For this reason, I believe that insurance awareness is significant. If we all manage to improve it together, the prices for the customers will go down, the quality -because this is also very important- will be higher, as there will be a way to have funding, to find the money to pay for a very high quality solution and at the end of the day this is a sustainable system for the future.

LAMPROS KARAGEORGOS: I would like to say that from the sayings of our interlocutors

so far, we have the insurance companies, we have the private hospitals and we also have the public ones. I could understand from Mr. Apostolopoulos' statement, that you disagree, you rather said it clearly, that you disagree with this measure of insurance companies going into public hospitals. Do you think it is inappropriate?

VASSILIS APOSTOLOPOULOS: It’s none of my business, but as a person who belons in this field, I made this comment.

LAMPROS KARAGEORGOS: You are entitled to have an opinion, as you are also activated in the health field. But since we now have the afternoon surgeries, which comes as a “reform”, let's say, and the insurance companies are already preparing to offer some programs or some services in this direction, do you have the same opinion about this? In the one or the other way, afternoon surgeries are a reality, so will insurance companies be able to get in there anyway, or is this something different? Truth be told, a lot of people say that this competes directly with the private health sector and that you're going to face problems.

VASSILIS APOSTOLOPOULOS: At the moment, there is anyhow an excess demand and of course there are also long waiting lists in certain specialties. So, I believe that the Ministry of Health, in its quest to find a way out, chose to implement this measure. I think that in practice this measure will be judged at the end, whether it was right or not. So far, I

A first common finding is the need for the State to reduce insurance and health taxation by reducing VAT on health services and insurance contracts. A second common finding of our interlocutors is that we are referring to a "health ecosystem", with the aim of improving benefits towards the patients. In this context, collaborations and discussions, in order to deal with individual issues, are a challenge

understand that there is a movement towards afternoon surgeries, however I am not sure if cumulatively more people are being served. That is to say, at least this is the information I have, most probably a part of the morning surgeries is being shifted to the afternoon, while the cumulative number of citizens served is not improving.

LAMPROS KARAGEORGOS: However, to return to the first topic which is also the main one "Allies for Health", it has been already made clear here, from the first statements, that there are, rather to say it in other words, I personally believe that Insurance and the providers of health services, are two polar opposites, in the sense of a healthy competition. One buys, the other sells. And to talk about the whole package, especially in Greece there are somewhat oligopolistic conditions in the health sector, Mr. Gauci would say. So, on this issue, I would like to know if there is ground for a real alliance in Health and what might be the first points that someone can, let’s say, respond and say that insurance companies and hospitals, instead of being every week consulting in arbitration, let's say, they better draw a common strategy for the benefit of the patient. That's the point.

VASSILIS APOSTOLOPOULOS: Since you said a lot and I don't want to miss anything, because all these queries are important, let me say that obviously my view is that the insurance companies and the providers need to be in dialogue, in an effective dialogue. I

don't accept the term oligopolistic position regarding the clinics, as given the concentration that currently exists in the insurance sector, we could also say something similar. Much more when in our industry, and I think the gentlemen already know it, there is a culture of misunderstanding, where everyone looks to take advantage of the other's mistakes, to say it in simple words, in order to make a better deal with the insurance companies. Further, the starting point of each of us is not the same. Because it is a different thing for management to have a mandate, that is to have a certain period of time to generate some profitability, because your shareholder has asked you this for his own reasons, and it’s a whole different thing to have a time schedule which is unclear and within which we have the luxury of drawing up our policy.

COSTIS SPYROU: Mr. Gauci?

ROBERT GAUCI: We have a lot of common interests, the first one being to have a satisfied customer. I think we can talk about many things, but at the end of the day, if we are not allies in this, the system will not be sustainable. So, the conditions must be created for it to be a system that the customer can pay for, and that's why I talked about insurance consciousness, and that's why I also see that there is room for all these systems, that is the purely public, the hybrid and the private, and that there will be no cannibalism among them. The opposite. The

needs are huge, the needs for quality health are huge. Private hospitals have the power to invest in extremely high-quality systems and services and I think we, as insurance companies, want to support that. Then the conditions must be created, I am thinking of the taxation issue that Mr. Apostolopoulos referred to a little earlier, which I think consists a practical example that we can be completely allies, as we are allies with everyone, that is, the public sector as well has an interest in this system being sustainable.

COSTIS SPYROU: Are you talking about VAT?

ROBERT GAUCI: Exactly. I think there is a lot of scope in helping Greek citizens to have an easier access to the health system and we, as insurance companies, can support it and support everything that exists as an infrastructure. I don't really believe in cannibalism. I think that in reality all systems are complementary, the needs are huge.

COSTIS SPYROU: Mr. Veliotis?

GEORGE VELIOTIS: I believe that the future is collaborations at all levels. This is not only a Greek phenomenon. It is observed at many levels. For instance, the Dutch model is a partnership of private and public sector, just like in Switzerland. It took them many years to develop it and we, here in Greece, will have to find a model that fits the Greek reality. Why? Because today the Greek citizen pays twice, pays taxes, pays contributions, pays out of his own pocket and pays private insurance, for the same good. What is he looking for? Good quality and easy access. This is the reality here, today. What is the biggest problem? The access. And this is true to a certain degree in the private sector today, as it is, because the flow and morbidity has increased. The private hospitals are full. So here we face a matter of access. So, the infrastructure needs to be better utilized by both the private and public sectors, so that there is a balance as well. The big challenge for the insurance market is the cost of insurance premiums. People can't afford to pay these premiums and they can't afford to pay the very large increases that we are now forced to impose, because the costs have gotten out of hand.

So, we have to find any way we can to reduce this cost, because this will bring more Greek citizens to private insurance. And I think, starting with the tax regime in VAT, it will be a very big step in order to make a significant reduction, to allow a significant reduction in costs.

Regarding the collaboration models, I personally think that, since I have experienced and see it in other countries, partnerships with the public sector also work. I think that the afternoon clinics and surgeries are a first step. It may not be perfect, but it is satisfactory, it shortens the lists, it gives something extra to the doctors of the public sector, who are very good doctors and I think this can also bring a balance. And I believe, looking ahead, that there is ground for cooperation for new models as well, more developed private and public sector models.

COSTIS SPYROU: You just talked about VAT that could help both industries immensely. Other ways such as the famous DRGs, medical protocols, would be something that could potentially help in that direction?

VASSILIS APOSTOLOPOULOS: The debate around DRGs is very big. The effort that started with the DRGs and of course with all the problems that will arise if this will be the central political direction, we are obviously there to support it. Naturally, having a look at the international market, one can see a shift to value-based health care, this is the latest trend, but beyond that we are open to whatever is chosen, in a creative way, in order to contribute to the adoption of any system deemed necessary and of course the DRG will indeed be innovative. It will also touch doctors, which until now seems to be left outside the debate, while in fact the issue is tripartite, it is not only hospitals and insurance companies. Because we also don't have the proper mechanism to direct the doctors. They are self-sufficient, with their own opinions and beliefs. So, maybe this could be a mechanism to somehow try to bring a balance.

COSTIS SPYROU: Mr. Gauci?

ROBERT GAUCI: DRGs will not change the economic balance existing around services, but they will greatly simplify their management. And I think that if we agree on models that really cover the true costs and are realistic, then their implementation will help both insurance companies and private hospitals to have simpler procedures, less people doing bureaucratic things and at the end of the day transparency in how the money is spent and how each invoice and compensation from the part of the insurance company works. I think it is in everyone's interest to implement it, in the right way of course, to be fair for everyone, but it is an improvement and a simplification of a model that is currently complex. I have a lot of people in the company who only look at invoices and look at each and every line, this is something useless after all and I believe this is something that can help us manage.

LAMPROS KARAGEORGOS: I am sorry to interrupt you, he's looking at the invoices because he sees a lot of charges, more than what the insurers say...

ROBERT GAUCI: It's not that. DRGs really simplify the way claims are managed, at least for insurance companies. We are, at least I personally am in favor. I think it's an improvement that is beneficial for everyone.

COSTIS SPYROU: Mr. Veliotis, what’s the situation in Europe?

GEORGE VELIOTIS: Look, most countries have DRGs. It's a tried and tested system. It is a system that is constantly upgraded, centrally and per country. It is a system with a clear framework and transparency. Now as far as the price that each one wants to charge each package is concerned, that's a matter of negotiation. But these are two separate

things. At least you can compare apples to apples. Because right now it's not sure about let’s say a bile operation, if these three operations cost the same. For an exactly identical incident, one is charged 1.000 € and another 3.000 €. There is no such framework, no such transparency and that is the point.

COSTIS SPYROU: However, to leave aside the issue of cost, it is a fact that Health, as we said at the beginning, is very important for people's lives. In this context, the “Athens Medical Group”, since you are also here with us, always takes a step forward, as it is also your motto. What do you think is the biggest challenge we have to face in the health sector to have better services for the patient or the consumer in general?

VASSILIS APOSTOLOPOULOS: The new data, I would say, is the very large shortage of nursing staff, which is not only a Greek phenomenon. It’s observed all over Europe, perhaps all over the world, with the result that while we could potentially increase capacity, it is now the human resources that makes this difficult. The second is the technological development, which essentially means that the life cycle of machines and technologies is now significantly reduced, so this calls us for continuous and even greater investments in order to be one step ahead, as you rightly said. And the third is, after the invasion of this technology, of big data and artificial intelligence, which of these trends will prevail and in which one should invest, for the essential reason, which is to improve the provision of health services.

COSTIS SPYROU: Mr. Gauci, the involvement of the insurance company in this whole process is very important, because you are the subsidizer, let’s say, both for someone who can enjoy such health services, but even more so for someone who cannot. So, what is the biggest challenge, in your opinion, that may arise in the future in the field of health?

ROBERT GAUCI: I think the biggest challenge is to build sustainable ecosystems all together. Let's go beyond the simple, “you are a patient, you have a disease, I pay”. Let’s get into prevention, to help have fewer needs, fewer people getting sick and finally reduce the cost. This is the one: how can we all together support a culture of prevention, that will be spread throughout the society.

Secondly, the patient expects an easy life. This means that we, as insurance companies, are allies with all hospitals and all private clinics, to build a model that is simpler for the consumer. I fall ill. I don't have to wonder about “how am I going to do it?”, “with which doctor?” If we can build something that simplifies people's lives, that provides value to the customer.

And thirdly, I think that everyone should understand that it is better to pay a small premium, from an early age until the end, than to pay only when you get sick.

The out-of-pocket today, that is the amount that people who are not insured are paying

out of their pocket, is very high. On the contrary, the percentage of the insured is very small. I repeat and strongly insist in this. Insurance awareness is a key to making this system bearable for all, to be sustainable. We all have to lead it towards this direction.

And finally, I would say the tax incentive, VAT, can be something helpful, in order to make it even more sustainable. These are the challenges.

Whether we will succeed, remains a puzzle. In case all pieces of the puzzle come together, I believe that the Greek citizen will acquire more peace of mind, because the system will work.

COSTIS SPYROU: I'm sure you agree Mr. Veliotis. Do you have anything to add to that?

GEORGE VELIOTIS: Look, I think a new approach for the future is needed, because the two biggest challenges, in terms of disease, that I can see, are firstly the chronic diseases. As the population gets older, more and more suffers from chronic diseases. Any of these diseases need frequent monitoring, changes in lifestyle, medication, treatment. The second big challenge, which is also inked to the aging of the population, and this is not of the future, it is of the present, is oncological diseases, cancers.

We are observing a geometric increase in cancer incidents. But also, there is very important research going on and I would say development in the treatment of cancer. I believe that the future will require new models to deal with these two disease categories and in the long term I believe that cancer will be treated to a greater extent as a chronic disease and that people will die with cancer and not because of the cancer.

The cost and the leap we have to make as a system, is huge. For us, as an insurance company, I think this is also a very big opportunity, because the people who are insured with us, they will stay with us throughout their lives.

LAMPROS KARAGEORGOS: At the beginning, Mr. Apostolopoulos spoke about inflation. The insurance companies are talking about medical inflation and because tomorrow they may read us and the insurers may also see us, they are the third player, let's say, in this relationship, who shouts out loudly that the policies, as you already said Mr. Gauci, are much more expensive and the insured are obliged to interrupt them. Anyway, a vicious circle is created. Who is responsible for this inflation after all? And how worth is an effort to find the culprit, let's say, and be able to tame it, because supposedly the two poles, as I said, must be allies in this health effort.

And I say this in the following sense: Mr. Apostolopoulos talked about medical technology, about the need to pay off the investments of this renewal. You may say, as insurers, I also know this from the reportage, that hospitals, when they acquire a new robotic machine, they immediately direct patients there, to pay it off. These are everyday

issues that we hear about. But I think that there is also a wider scientific opinion on the issue and it would be worth listening to it. Who is to blame, what is the cause?

VASSILIS APOSTOLOPOULOS: As you said, I can't point the finger at someone and say they're to blame. I think I also very much agree with what was heard before, that we are talking about an ecosystem. In this ecosystem everyone must understand their role and what’s their quotas. I absolutely believe -because this is also how we see our organization evolving in the future- that you must have a lifelong relationship with each person and be close to them from the moment he is born until the moment he passes away.

With models of prevention, health promotion and minimally invasive intervention, certainly where applicable, heavier intervention where there is no other choice and both well-being and longevity. So, this, in a relevant context of an insurance consciousness culture, where everyone will support this need with the corresponding insurance contract, I think that this is the future and where one should look forward and not enter, this moment, in a blame game and ask “why are these processes endless? Why aren't we getting paid on time too? Why this, why that”? You know, that's what we want over here. We want to operate the patient, whether robotically or not I don't know, but certainly not to treat him with drugs.

LAMPROS KARAGEORGOS: I was impressed anyway, I saw your statistics. Let's not get into the financial part now, but I want to say that you have too many commercial demands, I mean from your customers. Is this part of the insurance companies great or is it mostly private?

VASSILIS APOSTOLOPOULOS: It's the insurance companies’ mostly. Look, the way it is currently structured, the process objectively creates bottlenecks and I think that even the insurance companies have no intention of keeping the money in their reserves and not returning it to us. Neither should we borrow from the banks to have working capital. We need to find a mutually acceptable solution.

LAMPROS KARAGEORGOS: I like this discussion. I think you can be every day at a table all together and find the friction points that should be smoothened.

ROBERT GAUCI: If you'll allow me, first of all I also don't want to get into any blame game, because it doesn't make any sense. We live in a world where inflation is everywhere. The costs of services, gasoline, everything is going up, that is, it is a reality. We can say “it's your fault, it's your fault, it's your fault” yet we don't solve the problem, or we can say “we have a problem in common, we're allies in it, how do we deal with it”? And I believe there is the solution and there is the key. Allow me to say something concerning the issue of the speed of payments. I believe, as

we said before, that DRGs can be a solution to put this issue much more in the center and to be able to simplify the procedures, as I was saying earlier. But in general, inflation is not anyone's fault, it's the economic environment, we all pay for it, but there is a way to deal with it. And I think we can find a solution together.

GEORGE VELIOTIS: I think that in order to build the new ecosystems, the new models and the future, insurance companies, hospitals and other providers must cooperate in a framework called value-based care. Value-based care is a model that is rapidly expanding in developed countries, but it requires close cooperation among these players, fact that brings them closer, facing the issue, the challenges and finding solutions step by step.

So, I think the debate about value-based care should be opened in Greece as well, which requires much closer cooperation. But this requires a common vision and to look at it in the long term. Because if you look at it in the short term, this is difficult to achieve. But that's where I believe the future is and collaboration stands in the center.

COSTIS SPYROU: Reaching the end of this conversation, I wish to believe that we have given the opportunity to touch some quite essential issues as far as Health is concerned. Do you want to add anything before we close this beautiful discussion?

VASSILIS APOSTOLOPOULOS: An optimistic message: I think that also during the individual discussions we have had with the gentlemen here, there was a common understanding. If each of us understands our own problems, but also understands the problems of the others, it is a very healthy basis, for a healthy discussion and solutions that we can support, with creativity, boldness and vision, as you said.

COSTIS SPYROU: Even the fact that you are all here right now, shows that there is a mood for cooperation.

ROBERT GAUCI: I also wish to send an optimistic message. I think there is a will to build a sustainable system based on quality. We, as insurance companies, want to play an important role in this and help all hospitals, public and private, to build this ecosystem that the Greek citizens need.

GEORGE VELIOTIS: Because the citizens of Greece want it. The demand is great. It is in our hands to provide the right solution and we must cooperate in this.

COSTIS SPYROU: I believe that in the context of this initiative we had to discuss all the above issues, quite important things were heard. We will have other opportunities to discuss such significant issues, because it is something alive, something that is constantly changing. We must say that the private insurance market gives the Greek citizens the tool to be able to enjoy these services and of course the level of hospitals, in general of the private ones in our country, is currently very high.

Two Years of Auxiliary Insurance Fund

With the motto “Invest today in your own tomorrow”, the information campaign of the Auxiliary Pensions Defined Contributions Fund (TEKA), is underway with the organization of events and TV spots, in order to call on the new insured to join TEKA, on the occasion of the completion of two years from the establishment of the Fund.

Today, the insured amount to 350,000 from 140,000 companies and the accumulated capital amounts to 112 million Euros, which in the long run, as experts estimate, will reach 38 billion. The information campaign is also addressed to insured persons up to 35 years of age (those born after 1.1.1987) with the aim to convince them of the benefits of the new insurance regime and to voluntarily join TEKA.

Prime Minister Mr. Kyriakos Mitsotakis, on the occasion of the event organized for the Fund's two years of operation, pointed out that: “The goal is to gain the trust of young people. It’s very often that I hear young citizens asking, why to invest in an uncertain future? We must leave this mentality behind, since small amounts today will become big tomorrow and young people will see the benefits of TEKA in the long run. We are committed to building an organization with expertise under the supervision of the Bank of Greece, which will guarantee the best possible returns. TEKA currently manages 112 million Euros, but will soon find itself managing billions of Euros. These funds must be invested and returned to the Greek Economy. Foreign insurance funds are big investment ‘blood donors’. The same should happen in this case as well”.

Young people will see the benefits of the Auxiliary Pensions Defined Contributions Fund (TEKA) in the long run

Minister of Labor Mrs. Domna Michailidou, stated that insured persons born after 1987 will be able to create their own individual piggy bank, in which the contributions will be accumulated, while they will have three investment options: of zero, medium and high risk. Returns in the future will range from 43% to 68%, while in the event of a market downturn the State will guarantee for the 100% of all contributions and something more.

The State Secretary for Social Insurance Mr. Panos Tsakloglou, stressed out that TEKA is a great innovation as it protects insurance from its exposure to demographic risks. At the same time, it also creates disincentives for undeclared labor, so that insured persons can expect higher pensions, not only auxiliary but also main.

The Chairman of the Board of Directors of TEKA Mr. Nikos Tessaromatis, emphasized that: “The main concern, responsibility, but also challenge for the Board of Directors is to manage the property of the insured in TEKA with prudence, responsibility, enhanced transparency, accountability and professional governance –necessary conditions for the building of trust among TEKA’s insured persons, the state and society in general”.

With TEKA, young people's contributions are saved in their individual “piggy bank”, in order to build their own auxiliary pension. With the individual account “myTEKA”, policyholders have full control over their contributions and the possibility of higher returns, based on investment programs of their choice.

TEKA applies strict transparency and accountability rules, a strong network of external and internal controls, good governance principles and best practices. The Fund invests in high expertise, is organized based on the standards of corresponding funds of other countries with a successful course, exercises a structured investment function and is staffed by people with knowledge and experience in professional fund management. The management of reserves and its investment function is supervised by the Capital Market Commission.

All the right steps have been taken, so that in a few years the Fund will turn into the largest institutional investor in the Greek economy, with part of the money that will be accumulated being reinvested in the Greek economy.

• Μία γ-camera και μία SPECT/CT -camera.

• Εννέα αίθουσες κλασικής Ακτινολογίας και Ακτινοσκόπησης, δύο α-

C-arm

Innovation is the key to a healthier and more robust future

By ANTHI AGGELOPOULOU

In an era of rapid scientific innovation and significant reforms in Health, the health systems worldwide were faced with a great challenge: To follow the trend of the times by providing quality and of new type health services, without skyrocketing the costs, so that this does not cause an access problem to patients.

After 10 years of economic crisis and 3 years of pandemic, Greece was faced with this challenge. The aging of the population, however with an increase in morbidity, forces the State to find ways in order to save resources that will strengthen the health system with new innovative treatments, machines of new technology and of course with the application of digital health in its entire range.

Continuous research, innovation and significant investments in the develop-ment of new products have created an important portfolio.

Α new genetic examination for acute leukemia patients received reimbursement approval in the USA. Understanding the genetic changes that occur in cancer has drastically changed the treatment of the disease in recent years. In many neoplasms, the molecular classification of patients is now possible, which on the one hand provides important information both for the prognosis of the patients and for the optimal thera-

peutic treatment. At the same time, new therapeutic possibilities have been developed for the specific genetic alterations of each and every patient, by approaching Precision Medicine in Oncology. A number of clinical studies have demonstrated that determining the treatment of patients based on the genetic alterations of the tumor increases their chances of survival and improves their quality of life.

For most neoplasms, of course, the molecular control is limited to specific genes that have been associated with the progression of the disease and the response to the applied treatment. Such an example is the therapeutic approach of patients with acute myeloid leukemia or myelodysplastic syndromes. There are three established genetic examinations, on which the therapeutic approach for these neoplasms is based: cytogenetic analysis, fluorescent in situ hybridization and DNA sequencing to discover mutations in specific genes. The new examination of the patient’s whole genome sequencing, that provides comparable information for the management of patients with acute myeloid leukemia or myelodysplastic syndromes. This test, called ChromoSeq, is performed on blood taken from patients and has been developed at Washington University in St. Louis, USA.

The scientists who developed this examination recently published in the prestigious New England Journal of Medicine their study, comparing the new molecular method with established genetic tests. The study demonstrated that whole-genome screening of patients' cancer cells can provide results in a short period of time (within 5 days of blood sampling) and reveal genetic altera-

tions in an additional 17% of patients resulting in a more accurate prognostic classification and thus their best treatment. Furthermore, standard genetic examinations are non-diagnostic in a significant number of patients suffering from these hematologic malignancies, and these patients can be molecularly sorted using ChromoSeq. Based on the findings, clinical studies are being conducted to prove the usefulness of the new examination in determining the treatment of patients with acute myeloid leukemia or myelodysplastic syndromes, while just in the past few days the reimbursement of the examination was approved by the United States health system.

An innovative technique, which overturns the standards concerning the treatment of patients with end-stage Chronic Kidney Disease who are about to join a dialysis program, was implemented in the B' Vascular Surgery Clinic of the Medical School of the Athens University, at the “Laiko” General Hospital of Athens. The innovative technique offers the possibility of creating “endovascular” or otherwise percutaneous vascular access (fistula) without the need of a surgical incision, having significant benefits for hemodialysis patients.

“Laiko” General Hospital of Athens, having a long history in vascular surgery, is considered as the “womb” of modern Greek Vascular Surgery. The state-ofthe-art Vascular Surgery Clinic of the Medical School of the University of Athens constantly invests in new methods and technological systems that improve the patients’ quality of life, staying true to its commitment to be a model center of reference, where all cases that require specialized vascular

surgery care are treated in the most modern way. It is worth noting that “Laiko” Hospital has at its disposal one of the largest Nephrology Clinics, as well as a Transplant Clinic, serving a large volume of cases with chronic kidney disease and vascular access in a daily basis.

Innovative technique of double simultaneous arthroscopy (anterior and posterior) of the ankle was successfully performed at “MITERA” Hospital. The technique of double simultaneous anterior and posterior ankle arthroscopy is a modern and demanding, minimally invasive method, which offers a lot of benefits to both the patient and the surgeon. It is applied by specialized and experienced groups of surgeons and allows the safe and with absolute precision treatment of the patient simultaneously in a single operating room. In addition, valuable time is saved for the patient, as a rapid recovery and immediate return to daily activities is achieved. The first percutaneous tricuspid valve implantation in Greece in a patient with severe symptomatic insufficiency of the native valve that was unsuitable for any other surgical or invasive treatment was crowned with absolute success at HYGEIA Hospital. The new method of percutaneous tricuspid valve implantation is performed without surgery and incisions, but through a catheter from the femoral vein, offering an alternative minimal risk treatment to selected patients, benefiting both their clinical condition and their quality of life. It is worth noting that tricuspid valve insufficiency is the second most common valvular disease in the developed world, and these patients rarely undergo repair or replacement surgery because the risk of the operation is high and the results are precarious.

"Health Cards", expensive premiums and what may change with the Evening Surgeries Initiation

By TASOS PAGONIS

NextDeal's initiative to organize the debate on Hospital Care Insurance Plans a few days ago was timely and very important.

We are again at a time when the issue, or rather the deadlock, of the function of the Hospital Care Insurance Plans is in tension.

Reading the minutes of the debate and although there were some interesting points raised by the participants, my feeling is that the core of the problem, being structural, remains. The debate precisely illustrates the evolution of the fourth, or fifth era of aftermaths , originated by the pivotal event.

ly made an initial check of the costs.

After the “Cards” were introduced, this check, which was naturally built into the process, was canceled.

(For the record, few people know that this crucial, as it turned out, important differentiation and its consequences were noticed and pointed out in time by a top Metrolife executive at the time, but the euphoria of the anticipated success was too noisy for this view to be heard).

sometime in 1994. But it was obvious that it was too late. Since then, the negotiations have simply continued. (Something like the Cyprus problem, that is).

The initial consequences of the introduction of the “Cards” (now processed on digital platforms) have since produced and are still producing new, chain effects, affecting product designs, reserving policies, and of course loss ratios, producing, in the course ,mistakes and deadlocks.

In the search for a more differentiated course, which was also the common message of the meeting, it is useful to bear and keep in mind the initial causes of the problem and not its temporal consequences, which we are simply still trying to manage.

It was somewhere in 1991 when Metrolife, an insurance company with a strong sales personality with the technical support of a then-large, reinsurance company (Mercantile + General), decided to disrupt the insurance market with a pioneering idea: to add to its hospital products a great innovation, the Hospital Care Card.

For the design of the insurance plan and the calculation of the premium rates, the then tariffs of private hospitals, among other data and calculations, were of course , used.

The critical misjudgment in the overall conception of the product concept was that no account was taken of the possibility that its introduction would completely overturn these tariffs and radically alter the status quo of the business environment, as eventually and dramatically happened. The history of Marketing includes some iconic product launches that dramatically and drastically changed the Markets in which they appeared and, in effect, created new ones. In the specific case of the "Cards", this did indeed happen, but not as the initiators of the idea had envision. Vice versa.

Until the introduction of the "Cards", insurance companies had hospital health care plans ranging from mere indemnities to comprehensive ones.

In case of admission, the insured went to the hospital, was informed about his case (and the possible cost) and the hospitalization proceeded. At the end of the hospitalization, he would receive the receipts and invoices, pay them, and submit them to his insurance company for reimbursement. To cut a long story short, by this process, he practical-

Soon, the hospital tariffs and doctors’ remunerations started to increase dramatically, but, very importantly, at the same time the overall culture of the Market changed, it relaxed, and insurance companies found themselves trying to manage a whole new attitude of policyholders, their sales networks and the hospitals, victims of their own marketing and advertising policies.

But, if all the above was due to a technical error, the far more serious one was the strategic error. Until the “Cards” introduction, the Hospital and Insurance Market were two separate markets. For hospitals, inpatients were simply individuals. For the Insurers, simply compensated insureds.

With the introduction of the “Cards”, the insurance companies have consolidated these two markets. The rules of marketing are clear in such cases: the function terms of the single market are determined by the provider of the end service to the consumer, in this case, the hospitals.

The mistake was strategic because it changed the business balance forever. What happened next, and still is happening, are simply tactical moves by insurance companies to manage the new reality.

A decisive factor for the insurance market was the fact that after the first company, lifting the gauntlet of the competition, the market leader Interamerican immediately followed with a very imaginative advertisement ('Only with your slippers and pyjamas' ).

Even though the thing was soon and visibly derailed, one company followed the other in introducing the Card in their products. The last one to give in did so under unbearable pressure from its sales force , despite the contrary view of its management (NN). In the end, only one did not follow (Alico).

The Hellenic Association of Insurance Companies (HAIC) was, of course, confronted with the problem. The Life Committee was called upon to manage the situation and appointed a group of its members (V. Kaltsas, K. Gionis, and the writer) to speak with two major hospitals, Iatriko and Ygeia,

In addition, as was natural, the first check of the hospital invoices made before by the inpatient, had to be reinstated. This necessity placed a significant burden on the claims departments of insurance companies and led to the creation of hospitalization costs audit companies. This new Market was incorporated into the whole process and inevitably is added to the single Market.

A recent development is the emergence of imaginative complementary products, to cover the cost of deductibles and co-insurance of the plans.

This development is evidence that the issue has now transcended the (single) Market of Hospital Care Plans / Hospitalization / Hospitalization Audit Market, in the form of an explored market gap. This is because:

Premiums (even those of annual renewal policies), particularly for older people, have become prohibitive for average incomes, coupled with very high deductible amounts and co-insurance rates. But at the same time, the cost of a purely private hospitalization is of concern to very few who can afford it.

In other words, for perhaps the first time, a single market problem is becoming a truly single one: Both premiums and hospitalization become prohibitive for a large part of potential 'consumers'. So, it may be time for a new innovative idea that will make the single (that doesn't change) Market of the Hospitals and the Hospitalization Insurance to pass in the "post-card" era.

Otherwise, as the Markets, and the Nature in general, hate the gaps, the solution will come by itself, therefore probably from elsewhere.

It may even already be here, with the initiative of the Evening Surgeries. Their organizational maturation that is proceeding and the significant interest of doctors to join that is beginning to appear, as well as the also noted silent return to the National Health System (NHS) are qualitative differences unknown some little time ago.

And let us not forget that upgrading and redesigning the NHS is a stated immediate priority of the State. This new emerging situation is a win-win development for doctors and the State, as it overcomes an old and long-standing difficulty of the NHS and cannot be ignored in the forthcoming redesign.

THE ACTIVITY REPORTS OF THE COMMITTEES OF THE HELLENIC ASSOCIATION OF INSURANCE COMPANIES (HAIC)

Modifications for businesses, professionals and insurance intermediaries

The abundant activities of the Hellenic Association of Insurance Companies (HAIC) are highlighted through the work of the Committees, set up by the Board of Directors of HAIC and led by its members. In the reports of all the Committees, a large part of which is presented by "Next Deal", the interventions in order to cover the insurance gap in the Property, Health and Pension sectors are dominant, as well as actions concerning the implementation of the legislation about the compulsory insurance of various professions, and finally interventions that mainly concern insurance intermediaries, such as the direct transmission of Civil Liability Insurance

Certificates and Retraining

Certificates of insurance intermediaries to the local Chambers. Great part of the activities of the individual committees is presented below.

Human Resources Committee President: Panagiotis Dimitriou (Generali)

In an environment of mutual understanding and consensus, the Hellenic Association of Insurance Companies (HAIC) and the Hellenic Federation of Insurance Associations (HFIA) proceeded to the signing of the sectoral Collective Labor Agreement (CLA) for the period 2023-2024. The new sectoral CLA takes into account inflation and includes favorable terms and wages, as well as a range of benefits for the industry's employees. In addition, it is uniform for all insurance companies. The new CLA is valid from 01.01.2023 and has a two-year duration (until 31.12.2024). It is noted that the decision of the HAIC Board of Directors to sign the sectoral CLA was subject to the existence of an

stated by C.C. itself, the cause of this specific research was the restructuring that took place in recent years in the sector of providing private health services, as well as the reformation of the regulatory framework for the provision of related insurance services. It should be noted that out of the many and interesting findings of the research and the conclusions of the C.C., as they are described in the published Interim Report, the most important of all is the fact that there is no cooperation between the health insurance sector and the private health service providers, fact that is to the detriment of consumers.

Digital Transformation Committee

agreement with the HFIA on the creation of Individual Accounts in the TEA-EAPAE (Fund for Auxiliary Insurance-Sopport of Insurers and Insurance Company Personnel), which was reached. The new system is expected to ensure the transparency and reciprocity of the contributions saved in the account of each employee-insured.

Health Committee

President: Giannis Kantoros (INTERAMΕRICAN)

Publication of the Interim Report of the Competition Commission as part of its sectoral research concerning private Health.

In July 2023 the Competition Commission (C.C.) published its Interim Report in the context of the private health sector research (provision of health and insurance services), which started in July 2020. As

After the publication of its truly multi-page Interim Report, the Competition Commis-sion organized a new public consultation in November, in which HAIC participated once again, by submitting a relevant written memorandum and represented by the Chairman of the Health Committee, Mr. I. Kantoros. According to the C.C., its research will be completed within 2024 and in this second phase consumer organizations will also participate, that will also be interviewed and express their views on the operation of private health service providers and health insurance companies, before C.C. draws up its Final Report. The Commission will monitor the relevant developments.

Gr-DRG: Pursuit of universal implementation of the new system in public and private health structures, regardless of the payer.

HAIC, as it is well known, is one of the first private entities that, having realized the importance of DRG systems, supported the work of the Hellenic DRG Institute, also known as Center for Documentation and Costing of Hospital Services, from the very first years of its establishment. After the recent institutionalization of the immediate, full implementation of Gr-DRG systems in the country's public hospitals (Joint Ministerial Decision Γ2δ/67340/20.12.23), but also the public announcement by the Deputy Minister of Health, during the 1st Congress of the Hellenic DRG Institute on 15.12.2023, about their imminent implementation in private clinics, as part of their collaboration with the National Agency for the Provision of Health Services, from the side of HAIC we intend to investigate the possibility of implementing the system also in the context of private transactions with private hospitals.

President: Robert Constantin Gauci (ETHNIKI Insurance)

Issues concerning Liability Insurance

HAIC, responding to the request of the Bank of Greece the insurance companies to transmit directly to the local professional chambers of the country the certificates of Civil Liability Insurance, as well as the Retraining Certificates of insurance intermediaries, for the purpose of renewing their registration, came into contact with the Professional Chamber of Athens and the Union of the Hellenic Chambers, in order to investigate and record the technical aspects and specifications of the process.

Automotive Committee

President: Dimitrios Zormpas (Syndea)

HAIC's proposal to the Bank of Greece, regarding the implementation of the provisions of article 28 par. 3 of Law 4583/2018 in the Automotive sector and in general In March 2023, the Bank of Greece forwarded a letter to the insurance companies activating in Greece, with questions regarding the application of the provision of paragraph 3 of article 28 of Law 4583/2018 (obligation to obtain the customer's

signature on the insurance application and delivery of the original application to the insurance company), with an emphasis on the Automotive sector. HAIC suggested to the Bank of Greece that it be established (if possible by legislative regulation) that the insurance application of par. 3 of article 28 of Law 4583/2018 may also be electronic, without the actual signature of the customer, with a further provision that the delivery from the distributor to the customer and the insurance company will be proven by any appropriate means. And in the event that the electronic insurance application is forwarded by the intermediary, the insurance companies are bounded to have a policy for the implementation of the procedure by the collaborating intermediaries. At the present stage, a legislative initiative is expected from the Bank of Greece, which accepted the above mentioned proposal of the HAIC.

HAIC’s proposals in the context of the harmonization of the national legislation with the European Directive (EU) 2021/2118 on the mandatory Civil Liability insurance from vehicle traffic (MID Directive)

The Commission also decided to study and propose to the State the establishment of purely national regulations, with the aim of improving the regulations of the current framework, as well as promoting permanent market demands in the field of Automotive insurance.

The purely national regulations proposed by HAIC, which, note well, can either be incorporated into the adaptation legislation or enacted by separate legislation, include:

• the addition of regulation concerning the access of insurance companies to the Record of Traffic Licenses & Technical Characteristics of the Ministry of Infrastructure and Transport

• the addition of regulation concerning the possibility of receiving an electronic insurance application in vehicle insurance (amendment of par. 2 of article 6a of Presidential Decree 237/1986)

• the amendment of article 5a of the P.D. 237/1986 in order to simplify the existing electronic control procedure of uninsured vehicles.

Uninsured Vehicles

HAIC proposed to include a relevant provision in the draft law concerning the harmonization of national legislation with Directive (EU) 2021/2118 on the compulsory insurance of Civil Liability arising from

the traffic of vehicles. The State is committed to promoting relevant regulation within the 1st quarter of 2024.

Access of the insurance companies to the Record of Traffic Licenses & Technical Characteristics of the Ministry of Infrastructure and Transport

This access, which is already implemented in most European countries by simply informing the client/ insured consists a basic request of HAIC and its members. With its letter dated 4.10.2023 addressed to the Minister of Finance Mr. K. Hatzidakis, HAIC submitted a proposal for a special legislative regulation on the matter, that the Association proposes to be included in the draft law for the harmonization of national legislation with the Directive (E.U.) 2021/2118 on the compulsory Civil Liability insurance arising from vehicle traffic. In substance, the State seems to understand the issue. However, its implementation is pending.

Activity Report of the Life & Pensions Committee

Law 5078/2023 on the reform of professional insurance and restoration of the tax differentiation between the Professional Insurance Fund and group pension plans

On 19.12.2023, Law 5078/2023 was passed by the Plenary Session of the Parliament, which brought about tax equalization to a significant extent, providing for uniform treatment of the benefits and premiums between the Professional Insurance Fund and group pension plans respectively, and adopted several of the HAIC’s proposals. Particular emphasis was placed on ensuring caps on contributions paid in a way that would prevent abuses of the system, but at the same time maintain its attractiveness. HAIC's

opinion was the creation of a flexible system without severe restrictions, taking into account that Greek society is an insurance-immature society without a substantial savings culture, which should be developed with appropriate interventions. In addition, according to a statement of the competent minister, during the debate in the Standing Committee of Social Affairs of the Parliament, the intention of the ministry is to come back with a new intervention in the professional insurance legislation, so it seems that the matter will continue to concern the Commission. In addition, the provisions for the need of possible clarifications from the competent ministries will be examined.

Civil Liability & Professional Responsibilities Committee

President: Giuseppe Zorgno (AIG EUROPS SA, Hellenic Branch)

Compulsory liability insurance of professionals

The Competition Commission proposed that HAIC should focus in a first phase on taking initiatives for the implementation of the mandatory professional civil liability insurance that has already been established by the State for specific professional groups, which has not, however, been implemented in practice, as the issuance of the relevant Ministerial Decisions is pending. In particular, the Commission selected the cases of plumbing installations (P.D. 112/2012), burner installations (P.D. 114/2012), cooling installations (P.D. 1/2013), electrical installations (P.D. 108/2013), installations electricians and operators of technical works machinery (P.D. 113/2012), for which Presidential Decrees have already been issued, that provide, among other things, for the obligatory insurance of the professionals in question. Howev-

er, the implementation of the stipulated insurance obligation has been placed under the condition of the issuance of a Ministerial Decision that will determine the minimum mandatory framework of insurance coverage, which has not yet been issued.

Direct transmission of supporting documents of insurance intermediaries

EAEE, responding to the request from the Bank of Greece that insurance companies transmit directly to the local professional chambers of the country the Certificates of Civil Liability insurance and the Retraining Certificates of insurance intermediaries, for the purpose of renewing their registration, came in contact with the Professional Chamber of Athens and the Union of Hellenic Chambers in order to investigate and record the technical aspects and specifications of the process. In the context of this task, which is in development and is progressing at a rapid pace, it has been decided the Union of Hellenic Chambers to implement a central platform for the collection of the data that will be agreed and will concern both the Civil Liability insurance policies and the training certificates of the insurance intermediaries. The Hellenic Union of Chambers has also proceeded, in the first place, with a standardization of the information that will be submitted by the insurance companies and other obliged entities, both for insurance certificates and for re-certifications. The project contractor has communicated the specifications to the stakeholders and at this stage there is a possibility of trial use of the application, through authentication credentials (username and password).

Legal Protection Committee

President: Dimitrios Tsekouras (ARAG)

It’s with an increasing concern that the Commission observed

throughout the year the trend –initially by regional courts and later by the Athens courts, even in fact sitting as Courts of Appeal– according to which, motor vehicle lawsuits are not tried with the special procedure, as provided for in the Civil Code for the adjudication of car cases, but for sums up to € 5,000 are tried according to the small claims procedure (at the District Civil Court), therefore they are rejected (by the Single-Member Court of First Instance), since it is considered that they have not been filed with the competent court. These cases should then be submitted to the District Civil Court, with the result that the relevant decisions can only be appealed directly to the Supreme Court and cannot be challenged before the Court of Appeal, because of the fact that the decisions of small disputes are irrevocable.

Property, Reinsurance, Transport and Shipping Committee

President: Errikos Moatsos (EUROPE Insurance)

Proposal for the insurance of residential damage from natural disasters

The Committee, through a specially constituted working group, worked to finalize the study on "Residential Damage Insurance from Natural Disasters", which had already started in the biennium 2017-2018. The revised text includes –in addition to the earthquake– the natural disasters related to the climate change (flood and forest fire), while excerpts from the relevant studies on the risk of the flood have been added. The proposal in its current form is formulated in two phases: in the first phase, the need to inform citizens, implement incentives and redefine the role of the state aid is emphasized, while in the

second phase, compulsory insurance is presented as a possible solution, since the previous actions do not ensure the desired result. The assistance of reinsurance brokers was also requested for the assessment of the proposal, as well as the submission of any alternative proposals for evaluation. Currently, the Commission is processing the comments received from the brokers in order to formulate the final text which will be submitted for approval to the management body of HAIC.

Mandatory property insurance for medium and large businesses

Following the Prime Minister's announcements in the context of the 87th International Exhibition of Thessaloniki, HAIC elaborated the proposed legislative regulation regarding the mandatory insurance, starting from 2024, for all companies or groups of companies with an annual turnover of more than 2 million euros, based on the latest fiscal year. With the regulation in question, the obligation to insure all privately-owned buildings, machinery, equipment and merchandise (raw materials, in-process and finished) of enterprises against the risks of fire, flood/thunderstorm/ rainstorm and earthquake as a minimum, which are the usual natural disasters. Also, the valuation basis (cost of reconstruction for buildings or repair or replacement for mobiles) was determined. On an optional basis businesses will be able to insure the loss of their fixed costs and profits (gross profits), due to the interruption or obstruction of business, as a result of material damage to their property.

In addition, it was proposed that businesses that fall under the above obligation and are not insured, should not receive the state aid of Law 4797/2021, regardless of the amount of damage they have suffered. Finally, in order to verify the companies' compliance with the insurance obligation, it was proposed the non-issuance of a financial statements audit certificate, with the exception of cases where insurance was demonstrably not possible for reasons dictated by insurance practice. The above proposal was forwarded to the Ministry of Finance and the Secretary General of the Ministry of Development, while at the same time, HAIC proposed the possibility of reducing the limit of 2 million

euros to the amount of 1 million euros, so that even the smallest businesses can be insured. In addition, in this project, a key concern was identified in dealing with noninsurable risks or "rejected risks", i.e. risks that will not be able to be covered –although they will have to– in the insurance market. Given the importance of the issue and the absence of a relevant mechanism, HAIC forwarded to 5 reinsurance brokers, in accordance with the decision of the Executive Committee, a new request for submission of proposals for the creation and implementation of a compulsory insurance system for companies with a turnover of more than 2 million euros, which will not be covered by the free market. This issue is in progress.

Product Planning, Distribution & Networks Committee

President: Nikos Antimissaris (ERGO)

Direct submission by insurance companies of professional training certificates for the purpose of maintaining the intermediaries’ registration in the Special Register of article 19 of Law 4583/2018

In cooperation with the Professional Chamber of Athens, HAIC came into contact with the Hellenic Union of Chambers in order to investigate and record the technical aspects and specifications for the promoted process. The planning of the Hellenic Union of Chambers concerns the implementation of a central platform for the collection of the required data from the insurance companies, but also from other entities issuing re-certification certificates, while it has proceeded with the standardization of the information to be submitted, in a first phase. The project contractor has communicated the specifi -

cations to the stakeholders and at this stage there is the possibility of trial use of the application through authentication credentials (username and password). At the same time, the necessary amendments to Law 4583/2018 for the distribution of insurance products are being promoted, which will legislatively reflect this specific change.

The Athens Chamber of Commerce has already forwarded a draft of provisions, which HAIC processed and commented on, in order to be forwarded to the Bank of Greece and the Ministry of Finance. A key concern is the entry into force of the new process, given that the companies need at least three months to adapt to the promoted requirements.

Amendment of article 28 par. 3 of Law 4583/2018

The relevant proposal of HAIC, which was formed in the context of the activities of the Automotive Committee, was also discussed in this Commission, before it was submitted to the Bank of Greece. According to a recent update from HAIC, the Bank of Greece has recommended to the Ministry of Finance a modification in the insurance legislation, in order to settle this specific issue.

Credits and Guarantees Committee

President: Gerassimos Tzeis (ATRADIUS)

The development and promotion of business insurance, including credits and guarantees insurance, is one of the main strategic goals of HAIC for the coming years. In this context, on December 11, 2023, the Hellenic Association of Insurance Companies (HAIC), in collaboration with Greek Exporters Association and the Chamber of Commerce and Industry of Thes -

saloniki, organized an Informative Event in Thessaloniki, with the aim of informing the corporate world about the benefits of credits and guarantees insurance in protecting businesses from insolvency and in supporting their healthy development. The Event was mainly attended by members of the Greek Exporters Association and the Exporters Association of Thessaloniki.

Sustainability Committee

President: Christos Katsios (Groupama)

A key objective for the Commission during 2023 was the formulation of a Strategic Text, the mission of which is to record the position of insurance companies. activating in Greece, in the burning issue of sustainability, through the triptych of ESG factors (Environment-Society-Governance) and under a holistic approach.

Committee for the Prevention and Treatment of Insurance Fraud

President: Karolos Saias (INTERASCO)

In this light, at the beginning of 2021, the HAIC Board of Directors, responding to the needs of its member-companies, approved,

following a recommendation from the Commission, an integrated action plan for the prevention and effective treatment of insurance fraud, which includes a realistic six-year plan. The Commission has implemented the first phase of the plan, which focuses on internal organization actions of the insurance market in matters of insurance fraud, and is already continuing with the implementation of the second phase, which mainly aims to strengthen the cooperation of the insurance market with the Hellenic Police for the most effective treatment of the phenomenon and in communicating the problem with informative activities towards competent bodies and society.

Solvency II, Risk & Finance Committee President: Nikos Chalkiopoulos (Allianz)

In 2023 as well, a large part of t he activities of the Solvency II, Risk and Finance Committee was devoted to the issue of the Solvency II review. Despite indications that the dialogue between the European co-legislators would be completed by 2024, on 13 December 2023 the European Parliament and the Council reached a provisional tripartite agreement concerning the amendment of Directive 2009/138/EC, i.e. the first level of regulation of the financial operation of insurance companies. Also, HAIC brought up the issue of adopting developmental tax incentives. The proposed incentives are moving along two axes: • individual life insurance (under 10 years) and hospital coverage with the exemption of health insurance premiums from the 15% premium tax and the deduction from the income of the annual cost of life and health insurance, • property insurance with reinforcement of the existing incentive.

Insurance Agents always were and

still

remain the main pillar of market development!

In the Greek insurance market, insurance agents (as natural persons) were, are and will be (at least for the foreseeable future), the main channel of distribution of insurance products and the main channel of direct and two-way communication, development and strengthening of relations between companies and their customers!

This results both from the analysis and comparison of the data of the past decades, taking into account legislative, technological and climatic developments, as well as from the current sales data of the various available market’s sales networks, among which the leading role in sales is held by the insurance agents! Let's go through them.

Think about what the Greek insurance market and insurance intermediaries of 2000 (not to go further back!) might have to do with the insurance market and insurance agents today. In less than 24 years, everything we knew for decades and were taken for granted drastically changed!

Since the 1990s, the signs of positive change towards the growth of the Greek insurance market started to be obvious, therefore the foreign multinational companies showed their strong interest in the development of the Greek market, with a spectacular increase in their presence in it. This presence was based on the prospects of market development that foreign companies saw back then and never stopped to this day, as foreign companies continue to see prospects of further development of our market!

In the 2000s, the Greek insurance market reached the

peak of its size, profitability and production, with a production of 5,4 billion Euros in 2009!

But towards the end of the decade and particularly during the 2010s, everything started to change, but not towards the expected direction! Slowly at first and then at a rapid pace.

Top changes of this period that started in 2010 and reached almost to the present day, which had significant effects/consequences (negative and positive) on the market, were:

• Greece's appeal to the support mechanism of the International Monetary Fund (IMF), announced by the then Prime Minister of Greece Mr. George Papandreou in Kastelorizo, in April 2010.

• The subsequent inclusion of Greece into the memoranda, under the close monitoring of the Troika (IMF, EU and ECB) and the harsh austerity measures that followed which, in practice, lasted until 2018.

• The escalation of the occurrence of risks directly related to the effects of climate change, throughout the time period from back then until today.

• The assumption of supervision of the insurance market by the Bank of Greece and the Department of Private Insurance Supervision, in December 2010 and of course,

• The passing of laws 4364/2016 (Solvency II) and 4583/2018 (IDD), which changed the operational and investment structure of insurance companies, their relationships with and obligations to their customers and directly affected the structure of sales networks. Especially the structure of the sales networks was changed from a system of intermediaries directly connected to the insurance companies (agency system), to a system of free cooperation of independent intermediaries with the insurance companies, which resembles brokerage (without however being exactly a brokerage).

• The number of insurance companies decreased dramatically and today, according to the report of the Governor of the Bank of Greece Mr. Yannis Stournaras, 36 insurance companies are activating in the Greek private insurance market, which have their reserves in Greece and are supervised by the Bank of Greece. In 2023 they had a production of 5,26 billion Euros, again approaching the record of 2009. Consider the fact that in the 1980s we had more than 100 insurance companies in Greece, then we fell to 65 and now we have 36! In addition, there are more than 200 free service providing companies operating in Greece, which are agencies having their headquarters abroad and are not required to keep stocks in Greece. Their total production in 2023 amounted to 1,37 billion Euros. These companies cooperate almost exclusively with insurance agents. Respectively, the market's insurance intermediaries (agents and brokers) have decreased from more than 20.000 in the past decades, to around 7.000 in total today! In the past, there were more than 50.000 insurance intermediaries, without being sure of their exact number! The

production of insurance intermediaries (insurance agents and brokers) in 2023 far exceeded 50% of the total insurance production, leaving behind the cumulative production through banks, secondary activity insurers and aggregators!

• The new system of knowledge certification exams for insurance intermediaries, imposed by the Bank of Greece is significantly responsible for the reducing of the number of insurance intermediaries, given both the average success rate in the knowledge certification exams (which fluctuates around 50%) and the lack of systematic staffing and educational support activities, especially of the intermediaries brokers who are “independent” and not directly connected to the insurance agent network companies (intermediaries).

The above changes brought about a decrease in production and slowed down the development course of the insurance market, which once again began to take the first timid steps of development in 2018, but it was slowed down one more time by the onset of the coronavirus pandemic in 2020, which, however, signaled and consolidated the development of alternative sales networks, such as aggregators.

Apparently, the course of development is starting again now that, as it was officially announced a few days ago, the pandemic is finally over.

What else important happened during the period from 2000 until 2024?

Technology has been spectacularly developing, bringing new perspectives to sales and customer approach and service (aggregators, Artificial Intelligence, 5G's).

These new digital sales networks have been actively involved in selling insurance products, without however managing to increase the overall production pie of the market (which remains at around 2.5% of GDP) and definitely providing a lower level of information to their customers as far as insurance products and their functions are concerned, nevertheless, having the significant advantage of direct price comparison among insurance companies/providers of insurance products. Their total production does not exceed the production of the insurance agents’ networks, either connected to insurance companies or not.

Banks tried to get in a more aggressive way into the game of selling insurance products, because they no longer had the expected profits from their purely banking activities, and they partially succeeded, with the exception of the lack of know-how as far as insurance procedures and practices are concerned and especially insurance servicing of their customers, which has nothing to do with the equivalent banking services. The banks have not been able to increase the insurance pie either. Their total production does not exceed the production of the insurance agents’ network, either connected

to insurance companies or not.

Climate change and the ever-increasing risks of natural disasters associated with it. The necessity for all of us to be insured against natural disasters is now obvious and imperative! The increase of the average temperature, the rise of the sea level, the increase in drought periods and the subsequent fires, the increase in flooding phenomena, cannot but concern the entire population! If we add to this the seismic risks, which are a consequence of the natural movement of the earth's tectonic plates, the problem is maximized, especially in a country with high seismicity, such as Greece! Positive for the Greek market is the legislative handling of the State as far as the management of the problem of damages from natural disasters through private insurance is concerned, which is expected to improve the overall production results.

In Conclusion

According to the above data, the future of the insurance market and insurance agents in Greece is considered to be auspicious!

Let's not forget that the insurance penetration in the Greek market stands at a very low level (2,3%) compared to the rest of Europe, while in Germany the penetration is at 8,6%, in Italy at 7,1% and in Spain at 5,3%.

Only Bulgaria is placed lower than us, with a penetration of 2,1%. So, we still have a long way to go in order to continue our growing course and approach the European average! The necessity of private insurance for Greeks is constantly increasing, as a consequence of the ever-increasing risks faced by our modern society. In particular, the climatic risks and the risks related to the decrease in births, the increase of life expectancy and the effects that all the above have on the management of pension issues as well as issues of managing and maintaining of the assets of the Greek citizens (clients and prospective clients).

If we add to the above data the legislative interventions towards the direction of improving insurance incentives in some insurance sectors (such as automobiles and natural disasters), and taking into account the improvement of the image of the professional insurance intermediary, which is assisted by the tightening of the selection and evaluation process of those participating in the sales networks, all these can only have a positive outcome regarding the improving of the insurance agent's work results!

Who is Costas Papaioannou?

He is a certified instructor of insurance subjects, with many years of educational experience.

He has written the books “Investments and Insurance” (Spyrou Publications 2021), concerning the certifications of the Bank of Greece in Unit Linked products and “Insurance Agents” (Spyrou Publications 2022), concerning the mandatory knowledge and knowledge certifications of insurance intermedia-ries by the Bank Greece. He has also participated in the writing of the books published by the Greek Institute for Insurance Education and Hellenic Banking Institution. He is a columnist for Next Deal.

He collaborates, as a specialist scientist, for research and educational purposes, with the National and Kapodistrian University of Athens, while he teaches in the MBA Banking and Insurance Administration, as visiting professor, as well as in other postgraduate programs of the Athens University. In addition, he collaborates with and teaches at the Greek Institute for Insurance Education and the Hellenic Banking Institution (Hellenic Bank Association), as well as other educational institutions.

He holds a degree on economics and postgraduate studies in insurance. He has worked in senior management training positions in some of the largest insurance companies and banks, activating in the Greek market.

However, in order to continue to achieve and consolidate all the above, the insurance market and its operators, the insurance companies, as well as the operators and links of intermediaries, should focus on the systematic professional staffing and development of the insurance agents’ sales networks, as well as in their modern training, in order for the networks to be even more modernized and able to fully respond to their increased legislative obligations towards their customers, but also to the real increase in the needs of their customers for insurance! In addition, insurance agents should learn and develop their sales in ALL insurance sectors and not only (and by default) in the automobile, fire and life-health sectors!

By CHRISTOS KITSIOS

The slow turn of depositors towards term products and the very low production of new non-performing exposures are the two “trump cards” of the domestic banks, in terms of this year's profitability development, having as a “wildcard” the possible adoption of a slower interest rate reduction by the ECB, compared to the one taken for granted by the market.

The first quarter results of the National Bank of Greece and Piraeus Bank, confirmed the above feeling. The increase in the participation of term deposits in the deposit mix is progressing much more slowly, compared to the rate that the banks budgeted in their business plans. Development that maintains a cheap deposit base, compared to other European countries, allowing banks to “cut” the margins (spreads) of loans towards large –mainly– companies, as well as to cover part of the increased cost of hedging the risk of interest rate cuts.

The participation of term deposits in the deposit mix of the National Bank of Greece remained almost stable, while the beta deposits reached 12% from 11% at the end of 2023. The above development contributed, so that the Net Interest Margin (NIM) to be formed at 3,26%, during the first quarter, compared to 3,37% in the last quarter of 2023 (Q4 2023). Quarterly NIM performance exceeds company guidance for the year (2,90%).

With regard to Piraeus Bank, the beta deposits also increased by 1%, on a quarterly basis (14% in Q1 2024), while the participation of term deposits in the deposit mix remained stable at 23%. The Net Interest Margin was 2x71%, marginally lower than this of the immediately preceding quarter (2,79%).

The two banks have budgeted this year's plan with the admission that the participation of term deposits in their overall mix will increase significantly. National Bank of Greece predicts an increase

Excess profits are promised once again this year

• The cost of deposits is cheaper and provisions for NPEs are lower, compared to the 2024 budget.

• Favorable conditions for upward revision of profitability targets within the year

of 25% from 19% and Piraeus Bank of 34% from 23%. These are estimates that analysts and the market considered, from the very beginning, as too conservative, and the course of the first quarter justified them.

At the same time, the rate of NPE formation was set at very low levels (almost zero) and as a result the cost of credit risk fell short of the budget. At National Bank of Greece, the forecasts for the period amounted to 46 million Euros, with

the cost of credit risk (Cost of Risk) being 55 base points (BPS), against guidance for a cost lower than 65 BPS. Total funding costs increased by just 3 BPS during the first quarter, to 80 BPS.

Piraeus Bank presented a Q1 cost of credit risk of just 51 BPS, against guidance of around 80 BPS for the full year. Thanks to the “curing” of regulated loans, the net production of new bad loans was zero and the NPE ratio remained stable at 3,5%.

Favorable conditions for upward revision of profitability targets

The combination of maintaining a cheaper deposit base and lower provisions, against targets, creates a tailwind for an upward revision of profitability and performance (RoTE) guidance as the year progresses, with the management of Piraeus Bank declaring its relevant intention, as long as the trend of zero NPE formation continues.

The management of National Bank of Greece did not proceed to a corresponding statement of intent, however, the analysts noted that the organic profitability of the first quarter (320 million Euros) and performance (core RoTE 17,6%) creates favorable conditions for exceeding the annual target (1,2 billion Euros organic profits and RoTE 15%).

The bank's net interest income amounted to 605,5 million Euros, above consensus estimates (600 million Euros), recording a drop by 3% in a quarterly basis, as a result of hedging costs and margin contraction (spread) of grants.

Strong Commissions for Piraeus Bank

Among the remarkable figures of the first quarter is the fact that Piraeus Bank managed to present revenues marginally better (145 million Euros+1%) than the immediately preceding quarter, which is traditionally possible, thanks to increased revenues from wealth management and bancassurance operations. The National Bank of Greece presented a net commission income of 99,6 million Euros, higher than the consensus estimates, but lower on a quarterly basis. Finally, Piraeus Bank reduced its operating expenses, a performance that reinforces the feeling that it will

outperform the guidance. A wildcard, the slowest interest rate cut

In case the ECB signals a slower pace of interest rate cuts at the June meeting or later in the year, the market will be quick to count on a revision of this year's earnings. This will have a more positive effect on the National Bank of Greece, whose budget foresees that the quarterly Euribor will move at the end of the year in the region of 3% and less so on Piraeus Bank (prediction for the formation of the average quarterly Euribor at a level of 3,8%).

The management of the National Bank of Greece addressed the issue, noting that this year's net interest income performance may be higher, if the ECB adopts a slower pace of interest rate cuts.

Recovery of Grants in April

A weak point of the first quarter results for both the National Bank of Greece and Piraeus Bank was the negative net credit expansion, a development roughly expected, due to the high repayments and seasonality. Both Banks’ managements estimated that grants will recover and the year's credit growth targets will be met.

The National Bank of Greece provided more data, noting that April's grants amounted to 850 million Euros thanks mainly to shipping loans, while grants of 2,9 billion Euros are in the pipeline.

The “clear” solution for loans with a Government Guarantee

Finally, at the behest of the SSM (SSM Pressure on the Government for State Guaranteed Loans), the two banks adopted, as they had announced in their last newsletters, a clear solution to deal with nonperforming loans with a Government guarantee. On the other hand, Piraeus Bank formed a provision of 70 million Euros and has budgeted in the business plan additional provisions of 250-300 million Euros until 2026. The goal is to reach the coverage of the subcategory at 80% within 2025 and at 100% by the end of 2026.

The National Bank of Greece has made an additional provision of 100 million Euros, while its management referred to an additional amount of 200 million Euros for the next 12 to 18 months. The above amounts may be significantly lower if the rate of payments by the State accelerates.

By MARY LAMBADITI

The problem of low birthrate "strikes" not only Greece but the whole of Europe, as the data collected show that in 2050 the Old Continent will literally be an endless nursing home. According to the Hellenic Statistic Authority (ELSTAT), births for 2022 were decreased by 10,3% compared to 2021, from 85.346 births in 2021 to 76.541 births.

Low birth rates put at risk the labor market, as well as welfare and social security systems. In particular, the decrease in births will also cause a decrease in the income of the social security system, with the result that either additional government funding will be required, or future pension benefits will have to be reduced. The loss of income for the insurance system is estimated by studies to be in the order of 50 billion Euros over a period of 50 years (2020-2070).

The pressure exerted by the demographic issue, the aging of the population and the increase in life expectancy, bring earlier to the fore the increase of the retirement age limits in our country.

The matter will be placed on the table in 2027, based on the survey of the Actuarial Authority, which is conducted every three years and will reflect, as the data shows, an increase in life expectancy, leaving the possibility of increasing the retirement age limits open.

According to the current provision of the “Katrougalos law”, which has not been repealed, starting from 1/1/2024 the age limits will be redefined every three years, always based on life expectancy. From 2010 to 2015 we had an increase in life expectancy (about 7 to 12 months). However, during the period 2015-2020 there was not a corresponding increase. In fact, in recent years, due to the pandemic, life expectancy has decreased, so according to the Ministry of Labor, it is not necessary for the moment to open a discussion on increasing the general retirement age.

In fact, Greece remains “out of touch” as after Troika’s pressure, the age limits were increased by 2 years to 67 and 62 from 1/1/2013, much more than the increase that would result from the implementation of the law of 2010. In addition, with law 4336/2015, all intermediate retirement age limits were violently increased. Another argument for not opening the debate is that Greece has the highest retirement age in the EU along with France (67 and 62 after the Macron reform) and Italy (67 and 64).

Mass Retirement by 2030

The pressure exerted by the demographic issue, the aging of the population and the increase in life expectancy, bring earlier to the fore the increase of the retirement age limits in our country

However, the recent EU report (Eurostat Aging Report Group 2024), in its projections for Greece, shows an increase in life expectancy by 7-8 months from 2024 to 2030 and indicates an increase in the age limit for our country to 68,5 years in 2030, from 67 today. Specifically, according to Eurostat's guidelines, Greece, which in the current year

2024 has a general retirement age of 67 and 62 for early retirement, in 2030 should increase it by one and a half years to 68,5 and for early retirement by one year and three months at 63,5.

Demographic projections show that by 2050 the general age limit in our country should reach 70,5 years and with early retirement 65,5 years, while in 2070 the age limits should reach 72,5 and with early retirement 67,5. This means that today's young people entering the labor market will need to stay in labor longer until retirement. The readjustment of the age limits is not ruled out by Dr. Vassilis Betsis, Professor of Pantheon University, who is expressing his concern about the demographics due to the decrease in births. “The latest projections show that the life expectancy increases by 1,3 years every 10 years which means that the age limits should increase by 8 months every three years. So I do not rule out that after 2027 we will have to adjust the limits in some way. What is required for the sustainability of the insurance system, i.e. not to increase the aging of the population, is the increase in fertility, which will probably remain an illusory expectation. Immigration cannot solve the

problem because it is of a short-term horizon”.

For their part, the competent Greek officials exclude the possibility of a new increase in the general retirement age, at least in the coming years, since our country is currently at the top of the EU countries in terms of the general retirement age and the average effective retirement age from active working life.

Record-breaking retirements in 2024 as well

Pension applications are expected to hit a new record in 2024 as well, causing intense pressure on the expenses and accelerating the liquidation of outstanding pensions.

Data received during first months of 2024 show that the number of applications will once again exceed 200.000 and it is not excluded that it will approach the record of 2021 (212.151 applications). Specifically, within the first 2 months of 2024, 35.451 applications have been submitted, when last year 29.470 were submitted during the first two months. The bill is expected to “inflate” at the end of August when the teachers submit their applications.

According to the government’s top economic officials, an increase in applications by 30.000 is expected, a figure which means that the pension expenditure will be burdened by 400 million Euros.

The largest retirement applications in in recent years have been submitted in 2021 (212.151 applications) against 211.133 in 2022 and 190.388 in 2023.

In the previous decade, waves of mass retirements were recorded in 2010, when the first memorandum imposed an increase in the age limits (135.000 applications) but also during the period 1998-2006, when the large voluntary redundancy took place at the Hellenic Telecommunications Organization, the Public Power Corporation and the Banks. The “key” to the continued mass retirement must be sought in various causes but mainly in the maturing of the pension rights of the baby-boomer generation. The generation in question, is characterized by an explosion in the number of births and was developed in Greece between 1960 and 1965, much later than the rest of Western Europe and the USA, as the Greeks, in order to start giving birth, had first to leave behind the wounds of the Civil War and the poverty of the 1950s. In that five-year period, 170.000 births were registered per year, while today births do not exceed 90.000 per year.

“From 165.000 to 200.000 pension applications will be submitted to the Single Social Security Fund (EFKA) in the coming years on a permanent basis until 2030, when the workers of the baby-boomer generation will have retired with a pension”, says Dr. Vassilis Betsis, Professor of Panteion University. “Afterwards the number of applications will decrease as the population is also decreasing because of demographics”.

There is a long way to go for the digitization of insurance companies

Over the past years, digitalisation has had an increasingly important role in enhancing the design, development and selling of innovative (re)insurance products and services through both traditional and new digital platforms and channels. Leveraging on the increasing availability of data in today’s digital economy and the advent of new technologies such as Artificial Intelligence (AI), Blockchain or Internet of Things (IoT), digitalisation offers a wide range of opportunities for insurance undertakings, insurance distributors and customers.

Against this background, in 2023 EIOPA launched an EU market-wide survey aiming to better understand the dynamics, opportunities, and risks associated with ongoing digitalisation projects in the European insurance sector. The findings of this survey are summarised in this

report and are complemented with inputs from a Eurobarometer survey providing customer’s perspectives on certain digitalisation aspects. Some of the key findings are: }

• The digitalisation of the European insurance sector is varied and, in most cases, is still at an incipient stage; there is a wide range of practices in the market and the level of digitalisation can substantially differ from one insurance undertaking to another.

• Pure digital distribution channels still play a secondary role in the distribution channel ‘mix’ of insurance undertakings, especially for life insurance; customers still predominantly purchase insurance products via physical channels, although online tools may be also used for comparison and information purposes; shopping behaviours may depend on factors such as the level

of digital literacy of the customer.

• Telephone, email and face-to-face are the most popular communication channels used by customers to interact with insurance undertakings to date. Chatbots are used; this is expected to significantly increase in the near future, possibly related to the emergence of solutions based on Generative AI. A significant number of respondents have not implemented mobile phone applications.

• Most insurance undertakings are active in social media, mainly to interact with customers and to launch marketing and financial education campaigns, and in some cases also to cooperate with social media “influencers”.

There is a high concentration in the provision of relevant IT services such as cloud computing; almost 80% of the respondents outsource cloud computing data storage to

BigTech cloud services.

• AI is used by 50% of the respondents in non-life insurance and by 24% in life insurance, and an additional 30% and 39% of respondents expect to use AI in the next 3 years in non-life and life insurance, respectively.

• The majority of AI use cases are developed in-house, with simpler and more explainable AI solutions currently used the most. From a governance and risk management perspective, AI is most often used with human oversight, and the Management / Executive Board is most often responsible for the approval of high-impact AI use cases.

• Other technologies such asInternet of Things (IoT), Blockchain (including crypto assets) and parametric insurance products are currently only used by a minority of insurance undertakings. } Most insurance undertakings report a growth

Insurance shopping habits by different groups of population in the EU

of cyber insurance markets in the past two years, although cyber insurance products still include marked coverage exclusions. Cyber insurance products are mostly marketed to corporate customers, including SMEs, rather than to retail customers. } Acquiring adequate talent and skills is seen as a major enabler of (and barrier to) digital transformation, and cyber risks are perceived by insurance undertakings as the main risk arising from digitalisation. Digitalisation brings significant opportunities both for customers and insurance undertakings, including faster, more efficient, and automated processes. While customers with different profiles have diverse shopping habits, they generally appreciate the convenience of more tailored products and faster processes or being able to shop and search for information about insur-

Most popular channels used by retail customers to interact with undertakings

ance products online on a 24/7 basis from any location. The trend towards the increasing digitalisation of the insurance sector is expected to progressively continue over the years to come.

Major discontinuities in this process cannot be completely ruled out in view of rapidly evolving technological developments. Taking into account the evolving nature of the digitalisation landscape as well as legislative developments such as the Artificial Intelligence Act, the Digital Operational Resilience Act or the Financial Data Act, the findings of the present report will support EIOPA in evaluating risks and benefits for the market and customers, assessing and designing regulatory measures where EIOPA is so empowered, enhancing supervisory convergence and supervisory oversight, and ensuring that stakeholders harness the benefits of digitalisation while safeguarding custom-

er protection and financial stability in the markets.

These inputs will feed into EIOPA’s recently approved Digital Strategy, which sets out the Authority’s strategic objectives in this area and guides its digitalisation work for the years to come.

The survey was published on EIOPA’s website and was distributed to insurance undertakings via their respective National Competent Authorities, aiming to capture at least

60% of total Gross Written Premiums in each national market. It covered both life and non-life (re)insurance Lines of Business, including both retail and corporate clients. It did not address intermediaries at this stage. The survey was launched in Q2 2023, with a total number of responses amounting to 209 (re)insurance undertakings from 22 EU Member States.

Almost half of the participating insurance undertakings (49%) were

active in both life and health insurance, while 28% were only active in non-life insurance and 23% only in life insurance lines of business. As far as their target market is concerned, 70% of the participating undertakings targeted both private and corporate customers, although some stated that there could be differences between lines of business. Moreover, 21% stated that they only targeted retail customers, while the remaining 9% stated that they com-

GWP sales via digital distribution channels - breakdown across the main business lines

Use of AI in the different areas of the insurance value chain

Use of AI in the different areas of the insurance value chain

Risks covered in cyber insurance policies

mercialised products only to corpo rate clients. It should be noted that undertakings were asked to com plete the survey based on the status of their organisation in 2022 and, for some questions, foreseeable developments over a 3 years’ time horizon; for this reason, the most

captured by the responses provid ed. Overall, the input received can be considered representative of the current state of play of the digitalisation of the European insurance

those areas on which they were more specialised or where more input on concrete plans and cases could be provided. When analysing the input provided by stakeholders,

sulting differences in terms of total count of inputs per question from the overall number of contributions mentioned above relates to the non-availability of data and re -

among the total which provided a response for the specific question/ area and disregard empty and N/A responses, unless it is otherwise mentioned explicitly in the report.

The data gathered from insurance undertakings via the above-mentioned survey has been complemented with input from customers gathered via an EU-wide Eurobarometer survey conducted in July 2023.

The Eurobarometer survey was carried out in the 27 EU Member States, via a representative sample in each country of 1000 EU citizens aged 18 and over. In total 26168 interviews were conducted via computer-assisted web interviewing. Among other topics, the survey captured customers’ point of view in relation to certain aspects of on-

line insurance distribution and their interaction with insurance companies via digital means. The report provides a general assessment of the status of digitalisation across the EU, and it has been structured around the following focus areas: } Strategy, Channels and Partnerships: assesses digital transformation strategies in place, as well as the relevance of digital distribution and communication channels and the role of BigTech and InsurTech start-ups as ecosystem facilitators. } New technologies and business models: covers AI governance, machine learning lever-

age, crypto assets, Blockchain, cyber insurance and usage of other technologies such Internet of Things, Application Programming Interfaces (APIs) and RegTech. } Opportunities, Risks and Barriers: describes opportunities and challenges arising from digitalisation.

2. STRATEGY, CHANNELS AND PARTNERSHIPS

2.1 DIGITAL TRANSFORMATION STRATEGY

The majority of the 209 insurance undertakings (52%) that participated in the survey already have a dedi-

the insurance sector is the revenue generated by digital distribution channels. In insurance, digital sales are mainly distributed through the undertakings’ own website, comparison websites, social media, mobile apps, or websites from other third parties (e.g., airplane companies selling travel insurance on its website). As it can be observed in the graph below, the proportion of sales via digital channels as a percentage of the total gross written premiums (GWP) represent, on average, 9% in life insurance sales and 19% in non-life insurance lines of businessin the European insurance sector. The expectation is that sales through digital channels will increase in life and non-life lines of business in the next 3 years. Future growth fits the same pattern as existing penetration.

cated digital transformation strategy in place, often developed at group level. Meanwhile, 23% of the undertakings stated that they do not have a standalone digital transformation strategy, but instead this strategy is integrated in their IT/corporate/business strategy. The remaining 25% did not count with a digital transformation strategy yet, or they were in the process of developing it.

2.2 DIGITAL DISTRIBUTION CHANNELS

An important indicator when assessing the level of digitalisation of

While some insurance undertakings explained that they exclusively distribute insurance products through non-digital channels, it was also highlighted that some customers may use digital tools to search and compare information online, but then conclude the contract in a physical branch. Furthermore, customers often stay with the same insurer for many years and do not shop around on a yearly basis(one undertaking mentioned that only around 20% of their customer base changes from one year to another). Some respondents also referred to differences between retail and commercial sales, or between personal profiles (i.e., age and digital skills), or products (for instance life insurance products representing high investments often require professional advice and therefore are less commonly sold via digital channels). Some respondents also justified the low level of digital sales by reference to the fact that they distribute insurance products only indirectly to the final customer, for instance via group insurance contracts distributed through other intermediaries or collective agreements with employers. These results are somewhat in line with the ones of the Eurobarometer survey, which shows that European customers still prefer to purchase insurance products through physical channels: in person or on the phone, directly from an insurance company (34%), via an intermediary (15%) or via a bank (11%). However, several European customers have also purchased insurance products via

digital channels in the last 2 years: from the insurer’s website (25%), a comparison website (11%) or the website from a third party different than comparison websites (4%).

While on average at EU level most customers still purchase insurance products from physical channels, this is not the case in all the EU 27 Member States; Figure 7 shows that there are relevant differences between Member States, which could be explained by different factors such as overhead costs, cultural differences, the overall level of digitalisation of the country or the existing network of distribution channels. There are also relevant differences when analysing the shopping habits of insurance products by different groups of population. As it can be observed in the graph below, digital distribution channels are more frequently used to purchase insurance products by young male customers with a high level of education and high income.

2.4 PARTNERSHIPS WITH INSURTECH START-UPS AND BIGTECHS

Outsourcing of products and services from specialised third-party providers is commonly seen as a way to obtain quick access to new technologies and business models by insurance undertakings. The recent developments around Generative AI and Foundation Models can be seen as a practical example. Indeed, insurance undertakings enter into collaborative agreements with specialised entities such as InsurTech start-ups or BigTechs, as well as other service providers, to leverage on their technological know-how and experience.

The survey questioned undertakings specifically about their partnerships with Insurtech-startups and BigTechs. Around 40% of the respondents highlighted that they currently have in place commercial relationships with start-ups and foresee to increase their interactions with them in the near future. Moreover, most undertakings have not invested either directly (e.g., acquiring shareholding) or indirectly (e.g., through venture capital) in InsurTech start-ups to date, and most of them expect to keep this approach unchanged over a 3-year horizon.

3.1

ARTIFICIAL INTELLIGENCE

Artificial intelligence (AI) is expected to play a pivotal role in the digital transformation of the insurance sector; 50% of the respondents, irrespective of their size or market share, are already using AI in non-life insurance lines of business, and 24% in life insurance lines of business. 10 And additional 30% and 39% of respondents expect to use AI in the next 3 years in non-life and life insurance, respectively. These percentages are somewhat in line with the findings of EIOPA’s 2019 thematic review on the use of Big Data Analytics in motor and health insurance,11 which showed that 31% of the insurance undertakings and intermediaries that participated in that exercise were already actively using AI, and another 24% were are at a proof-ofconcept stage.

3.3

INTERNET OF THINGS

The Internet of Things (IoT) refers to a network of interconnected physical devices, vehicles, appliances, and other objects embedded with sensors,

software, and network connectivity, enabling them to collect and exchange data in real-time. In insurance, this technology has many relevant applications, both with corporate and retail customers. Regarding the former, IoT is used in various industries for real-time monitoring and predictive maintenance of manufacturing equipment and processes, providing indeed very relevant information for risk assessments and underwriting. Amongst retail lines of business, the use of IoT in usage-based or telematics-based motor, home, or health insurance products can be highlighted. EIOPA’s survey specifically collected input from insurance undertakings on these types of telematics-based insurance products. The result of the survey shows that 17% of the 209 participating insurance undertakings already offer a motor insurance product linked to IoT. These percentages are smaller for the other two lines of business considered, household insurance (10%) and health insurance (7%). The penetration of insurance products linked to IoT devices is expected to increase; approximately two times more insurance undertakings expect to add such products to their portfolio in 3 years’ time. Moreover, the respondents also explained that on average the like-for-like difference in price when using telematics vs not using telematics for the same insurance product is in most cases between 1 and 10%.

3.4 CYBER INSURANCE

Cyber risks are one the main risks arising from digitalisation, as acknowledged by insurance undertakings. However, for the insurance sector cyber risks also presents a business opportunity with the commercialisation of cyber insurance products, both as standalone products and bundled / cross-sold with other traditional insurance products. The cyber insurance market has experienced a significant growth in terms of Gross Written Premiums (GWP) over the past two years according to most respondents, although they acknowledge differences between countries and some undertakings only report a moderate increase. The increase in GWP has reportedly been driven both by an increase in the demand of cyber security protection as well as due to increases in rates. Overall, respondents highlight the importance of relying on longer time series for the purpose of assessing the risk appetite and the possibility to further develop the sales related to cyber insurance coverages. Many respondents report a link between the development and growth of the overall portfolio and of cyber insurance products; 38% of respondents stated that they offer cyber add-ons to other insurance policies or the terms and conditions of such policies implicitly cover cyber incidents. While some undertakings (29% of respondents) reported an increase in cyber claims in the last two years, in particular resulting from ransomware attacks, most respondents (71%) have not experienced such increase. It was also mentioned that the increase in claims could be linked to its organic growth (in terms of GWP), and therefore it was difficult to draw conclusions and trends. Furthermore, it was also highlighted that the frequency and severity of claims varies across the EU and across entity types (SMEs versus larger clients).

By GEORGE MOUZOS

It is a fact that digital development in every aspect of our daily lives has drastically changed the way businesses operate. It is therefore logical that the insurance industry has been transformed accordingly by this technological explosion. Artificial Intelligence has laid the foundation for the new era of insurance companies, drastically changing the automotive sector –and not only.

Today, insurance companies have at their disposal a series of technologies that greatly facilitate their work. Technologies such as Artificial Intelligence (AI) have already begun to transform the capabilities of the industry, redefining every aspect of it: from risk assessment to customer service.

Advanced Analysis and Risk Assessment

Traditionally, the insurance industry has been relied on broad categorizations and historical data for risk assessment and pricing strategies. But now, with the introduction of AI, the analysis and assessment of risks has become a lot more sophisticated. Technologies such as telematics in vehicle insurance pro-

The era of the digital revolution in the insurance industry!

How Artificial Intelligence has changed the automotive industry

vide real-time data, enabling the assessment of driving behaviors and leading to more tailored offers. Accordingly, wearable devices in

health insurance provide real-time health data, allowing accurate risk assessments based on the user's behavior and habits, as well as their

health history. The ability of Artificial Intelligence to incorporate advanced big data analysis and provide predictions with increased accuracy highlights its importance for the industry, especially in an environment where the need for efficient and flexible risk management is more pressing than ever.

Fighting Fraud through Artificial Intelligence

Fraud has long plagued the insurance industry, but Artificial Intelligence is here to change the game. This is possible today, through sophisticated machine learning algorithms, capable of detecting fraud patterns. These systems not only detect potential fraudulent activity in a more accurate way, ensuring a smoother and more precise claims process. Artificial Intelligence solutions include accident digitization, fraud detection and automated estimation models. Solutions such as language recognition and machine learning, are also included.

The right use of Artificial Intelligence can help insurance companies detect fraud at the time it happens, in ways that could never cross our minds a few years ago. Now, companies can quickly focus and analyze customer profiles, while enabling investigators to identify fraud phenomena through specific patterns. Elements that significantly reduce the costs for insurance companies.

Automation of Compensation Processes

Another achievement of Artificial Intelligence is the speeding up of compensation processes, combined with its ability to improve efficiency, reducing the processing time of claims and at the same time significantly diminishing the possibility of error. From the chatbots that record initial damage reports to image recognition algorithms for their estimation, Artificial Intelligence enables a more immediate and accurate response to claims. This feature enhances customer satisfaction as claims are issued in a more quick and efficient way, reducing waiting time and customer dissatisfaction.

Personalized Customer Service

Artificial Intelligence enables a deep understanding of the customers needs and preferences, offering them customized products and ser-

vices, which is important and necessary in today's customer-centric market. From tailored products and personalized pricing to customized communication strategies, AIbased data enable a deep understanding of each customer's individual preferences and needs. This personalized approach not only improves their engagement and satisfaction, but also enables insurers to design products that precisely meet customer requirements, setting new standards in customer-centric insurance services.

Reduction of the cost, improvement of productivity

The implementation of Artificial Intelligence helps to reduce operational costs, as well as increase productivity. Automation of daily tasks and predictive analytics help companies make strategic decisions and significantly optimize the resources they use. All the above contribute to the diminishing of mistakes and, by extension, additional costs, while they also help to the strengthening of the organization's efficiency.

Innovation in Product Development

Artificial Intelligence doesn't just improve existing insurance products and services. It also promotes innovation, by enabling the creation of new products which are adapted to the evolving market demands, as well as customer needs. In addition, AI-based car insurance products that incentivize safe driving behavior represent a significant shift towards accident prevention and improved driver behavior on the road. These innovations highlight the potential of Artificial Intelligence to not only meet changing consumer expectations but also open up new markets and revenue streams for the insurers.

Artificial Intelligence: The new era of the Insurance Industry

Artificial intelligence represents a strategic investment for the insurance industry, offering enormous potential for improvement and growth. Its successful integration requires planning, proper preparation but also continuous development, as the transformation process can include both technological and organizational changes. The efficient and successful use of Artificial Intelligence is the path to a more dynamic and competitive insurance industry.

A historical flashback of private insurance in Greece

In the Album “Collectible Insurance Contracts”, by the publisher and author Mr. Evangelos Spyrou

The history of a whole century is reflected in the Album «Collectible Insurance Contracts», of the publisher and author Mr. Evangelos Spyrou. The Album, product of the collaboration between Spyrou Editions and Miletos Publications, includes dozens of insurance policies, issued from 1860 to 1960, with an artistic, historical and insurance value, from the private collection of Mr. Evangelos Spyrou.

Further flipping through the book, you will retrace the Insurance and Financial History of Greece for over a century, through contracts which «narrate» the personal, family and professional stories of people, who felt the need for private insurance.

The collection of Mr. Evangelos Spyrou preserves precious heirlooms, which reflect the history of an entire era. All these salvaged insurance policies –a very small sample we present to you in this special edition– constitute a very important heritage with historical and at the same time artistic value, which capture the creative effort to expand the insurance institution in Greece and Europe.

Assicurazioni

ETHNIKI Hellenic General Insurance Company – Fire Insurance policy in the region of Amaroussion, 1932. (ETHNIKI, a company of 3 centuries (19th - 20th - 21st century), was founded on June 22, 1891 on the idea of the Governor of the National Bank Pavlos Kalligas that Stefanos Strait realized. Five Banks [Ethniki (Athens), Constantinople (Constantinople), Epirothessalias (Volos), General Credit and Industrial Credit) have worked together to create the National Bank

UNIVERSELLE Transport Insurance Company of Marseilles –Marine Insurance policy for the transport of goods from Piraeus to Malta with a steamer called «Chios», 1918

UNION

LA BALOISE – Transport safety contract for various ports of the Mediterranean, of the trader of Constantinople, P. Sakalak, 1923-1925 (Baloise is one of the main shareholders of the ATLANTIC UNION)