A feature from the Nextdeal newspaper (Issue 581), currently on newsstands

The Insurance Industry, over time, has to evolve, transform and adapt to the new conditions, the needs of society and the circumstances of each era, says Mr. Alexandros Sarrigeorgiou, President of the Hellenic Association of Insurance Companies and Vice President of Insurance Europe, in the context of an interview with the newspaper Next Deal.

He characterizes the climate crisis as the probably greatest challenge that the humanity faces today, while regarding the protection gap, Mr. Sarrigeorgiouemphasizes that this continues to expand and today is at the top of the agenda of almost all states.

Responding to a relevant question, he stressed that the strengthening of the retirement income of future retirees inevitably passes through the second and third pillars. Insurance companies are actively involved in both: with group pension plans in the second pillar and with individual pension products in the third, notes the President of HAIC.

What role will the insurance industry need to play in a constantly shifting economic and social landscape?

In this landscape of constant transformation, the insurance sector is called upon to play a more substantial and dynamic role than ever before. Developments in the Middle East remind us how fragile the sense of stability we often take for granted can be. Geopolitical tensions are not confined geographically.

They affect international markets, energy costs, supply chains, and even citizens’ sense of security. During periods of increased uncertainty, the role of institutions that reinforce social stability and resilience becomes increasingly vital.  Insurance is one of these institutions.

Its importance becomes particularly evident when societies are tested, when risks cease to be abstract concepts and take on real dimensions. After all, we now live in an era where risk is more complex, more frequent, and often more costly than ever before.

Of course, risks are not new. They have always been present and always will be, just like the need for insurance. However, this does not imply that the environment remains unchanged. On the contrary, challenges are constantly evolving.

For this reason, the insurance sector must evolve, transform, and adapt to new conditions, societal needs, and the circumstances of each era. Only in this way can it continue to fulfill its role as a pillar of trust and stability in the future.

Given that the protection gap from natural disasters remains large in our country, what specific measures should be taken to strengthen insurance coverage and the resilience of the economy and society?

The climate crisis is probably the greatest challenge humanity faces today. According to a major international reinsurer, in 2025 17,200 lives were lost due to natural disasters and with economic losses totaling nearly $224 billion. Of these, only $108 billion—approximately 50%—were insured.

The protection gap therefore remains very large; in fact, it is widening and is at the top of the agenda for almost all countries.

Greece is no exception. We are experiencing floods with increasing frequency and intensity, phenomena such as convective storms and Mediterranean cyclones (medicyclones), wildfires, and other extreme events.

While we focus on these, we often overlook the “elephant in the room” for our country: earthquakes. A major earthquake could paralyze economic activity, severely burden public finances, and test the limits of social and productive resilience.

At the Hellenic Association of Insurance Companies, we systematically collect data on catastrophic events. From 1993 to 2025, 59 catastrophic events have been recorded, with more than 56,000 claims and compensation exceeding €1.3 billion in today’s prices. 2026 started with extreme weather incidents in January, with compensation estimated at over €20 million.

The insurance market fulfills its mission: it compensates those who are insured and stands by them in difficult times. However, the protection gap in Greece remains large, both for households and businesses.

In recent years, the State has taken positive steps. The ENFIA (property tax) discount for homeowners who insure their properties against natural disasters is an important initiative. Similarly, the introduction of mandatory insurance for businesses against earthquakes, wildfires, and floods.

As a market, we support these initiatives; however, it is clear that additional strengthening is necessary.

For businesses, the effectiveness of mandatory insurance will be judged in practice, through meaningful inspections and cross-checks. Controls must be carried out to assess the level of compliance with this measure.

For households, the ENFIA discount has had an impact, but at a slow pace. Insurance penetration remains particularly low relative to the actual level of risk, so policies are required that will quickly and effectively increase insurance coverage rates.

Due to the increase in the population aged over 65 in the European Union, what challenges arise for pension systems and what policies can ensure their long-term sustainability?

The increase in life expectancy is one of the most significant achievements of medical and scientific progress. Today, people can live longer, with the key objective now being that these additional years are accompanied by good quality of life and health.

In the EU, more than 20% of the population is already aged 65 and over. This percentage has increased by 2.9 percentage points over the past decade and, according to official Eurostat projections, is expected to reach 33% by 2100.

This development places significant pressure on pension systems. Traditional pay-as-you-go models are no longer sufficient on their own to ensure an adequate standard of living for future retirees.

In this context, the role of funded schemes becomes particularly important. In practice, strengthening the retirement income of future pensioners inevitably involves the second and third pillars. Insurance companies are actively involved in both: through occupational pension schemes in the second pillar and individual pension products in the third.

Although this need is widely recognized, Greece still lags significantly behind. The comparison with other European countries is indicative. According to an OECD study, accumulated investments in funded pension schemes in Greece amount to about 1% of GDP. By contrast, in Ireland the figure reaches 26.2%, in Portugal 12.9%, while in countries such as Denmark it exceeds 200%.

This gap does not merely reflect a numerical difference. It reflects different approaches in terms of mindset, policy priorities, and institutional design. We must examine what other countries are doing and draw lessons from them.

International experience has shown that a meaningful development of these supplementary pillars depends on a stable and favorable framework, with incentives that encourage saving. Without these, progress remains limited.

At the same time, fostering a culture of retirement planning from an early age is essential. Therefore, a strategy is needed that combines education and awareness with incentives. In this way, Greece will be able to develop the second and third pillars and ensure adequate and sustainable pensions for the future.

Read the feature below from the Nextdeal newspaper (Issue 581), which is also available online (click the bottom right corner to enlarge)