Republish from the special edition of Nextdeal (Issue 560)

Alexandros Sarrigeorgiou, Chairman, Hellenic Association of Insurance Companies

In an era of constant and multidimensional challenges, the role of insurance is more critical than ever. Climate change and natural disasters, geopolitical tensions, and demographic shifts compose a complex risk landscape that affects citizens, businesses, and states alike. Within this dynamic and uncertain environment, insurance stands as a pillar of protection, assurance, and economic stability.

Insurance is not merely a compensation mechanism. It is a system that functions for the benefit of society. It provides coverage and recovery in cases of disasters or personal loss, ensures continuity of productive activity, protects property, and provides incentives for citizens to save. Especially in countries like Greece, where savings levels are particularly low and citizens are expected to cover a large portion of unexpected expenses out-of-pocket, insurance coverage becomes critically important.

Unfortunately, despite the significant progress made in recent years, we still lag far behind European standards. Insurance penetration in our country is at one-third or even one-fourth of the European average. As a result, a large number of our fellow citizens remain uninsured and, therefore, exposed to risks that could be adequately and effectively covered through insurance. This reality burdens not only the individual but also the welfare state and the broader economy.

The Hellenic Association of Insurance Companies has set as one of its main objectives the strengthening of insurance awareness and citizens’ trust in the institution of insurance. Toward this goal, we are implementing awareness-raising actions and campaigns to help citizens understand how insurance can offer them meaningful protection throughout all stages of their lives. At the same time, we submit specific and well-documented proposals on major issues concerning Greek society, with particular emphasis on natural disasters, access to healthcare services, and the enhancement of supplementary pension savings. The Association works systematically with the State and all relevant stakeholders to shape a modern, functional, and effective insurance ecosystem.

On the part of the State, it is particularly positive that the key role of insurance in social cohesion and economic resilience has been acknowledged. It is encouraging that in the field of natural disasters, substantial steps have been taken—such as providing incentives through the reduction of ENFIA (property tax) for homes insured against natural disaster risks, and the mandatory insurance of businesses with a turnover exceeding €500,000 against risks such as floods, fires, and earthquakes.

These are institutional interventions that strengthen prevention and reduce future burdens on the state budget. However, these actions must be reinforced, and at the same time, disincentives—such as the insurance premium tax—must be removed in order to timely reduce the significant protection gap that exists in Greece: where less than 20% of homes are insured against natural disasters, and where the corresponding percentage for businesses is estimated at 40%.

Synergy among all forces is required in order to achieve the transition from a society with low insurance penetration to one with genuine and universal insurance protection. The State, institutions, insurance companies and civil society must act together, guided by a shared grounded in a common vision: a Greece where every citizen and every business has access to reliable and adequate insurance protection.

The world is changing rapidly. Risks are becoming more complex and unpredictable. Insurance is the tool that enables us to remain stable amid volatility, to protect what we have built with effort, and to secure a more resilient and safer future. Insurance protection is not a superfluous expense—it is a life investment.

Read below the article from the special edition of Nextdeal (Issue 560) in electronic format, page 7 (click bottom right to enlarge)