Insurers: Governmental …… foray in three installments!

Insurance Industry is under attack in all fronts, since, as it seems, the whole governmental program for rescuing Greece passes through this sector.

The first negative development came in the autumn with the government imposed hike in real estate. Insurers have very high investments in property, which even though they have the ownership, it actually belongs to their clients (part of the so-called mathematical predictions).

Indeed, the law on compulsory dispersal of mathematical forecasting is such that drives companies to invest a significant proportion of their investments in real estate.

The second back-set came in September by the government’s stated intention to limit tax deductibles in order to increase public revenues. Of course, officers of the Ministry of Finance are not yet clear on which exemptions will be withdrawn.

However, rumor has it that life insurance tax exemption will be limited to some extent and also linked to the declared income of each taxpayer.

Possible reduction of the relevant exemption would affect yields on insurance policies by making them less attractive.

Click here for the Greek article.

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