The insurance gap in Greece is four times higher than the European average. This gap can only be bridged by developing greater partnerships between the public and private sectors, Alexander Sarrigeorgiou, chairman of the Board of Directors of the Hellenic Association of Insurance, said during his address at the 25th International Insurance and Reinsurance Conference of the Association, which is taking place in Hydra, asking the government for greater interventions aimed at further supporting private insurance.
Referring to the European market, he noted that in relation to the US, it is particularly expensive and extremely complex in terms of procedures. He even used the term “over-regulated” as an economy, emphasizing that the European environment is anti-competitive for the development of insurance business.
Sarrigeorgiou underlined that in an era when geopolitical developments and international upheavals follow one another, the global economy is becoming precarious, facing the greatest threats of wars, climate change, demographics and the rapid development of technology.
In this environment, the Greek economy is succeeding and developing dynamically, however, private insurance is far from its goal, noted the president of Association, to identify four points on which particular emphasis should be placed, so that insurance companies can penetrate more into society.
Specifically, he stated the following:
In health insurance, technology is particularly helpful in increasing life expectancy, but it also makes the cost of servicing insurance policies more expensive, forcing insurance companies to raise prices. This year, the insurance market, in order to satisfy the government, limited premium increases, thus burdening itself financially. However, he believes that the issue will be addressed fairly between the two markets, with the aim, among other things, of stimulating competition in private hospitals and implementing DRGs (medical protocols).
The government has a duty to redefine its tax policy towards private insurance. One of the most basic measures it is called upon to take is the abolition of the 15% tax on health insurance premiums, a tax that is imposed only in Greece.
Joint initiatives between the market and the government must be undertaken to stimulate savings in Greece and address the financial and insurance illiteracy that characterizes the average Greek citizen.
Technological development, and in particular the prevalence of artificial intelligence, force insurance companies to invest in infrastructure as well as in human resources, in order to assimilate new technological data and better respond to the demands of insured persons.
