Health Insurance Premium Increases and Car Insurance Premium Fall

Health Insurance Premium Increases and Car Insurance Premium Fall

Small increases amounting to 5%, have been recorded on health insurance premiums (for hospital care) by insurers, from the end of 2013 up to the first two months of 2014, while insurance premiums on the car sector have been stabilised or even had marginal reductions, during the same timeframe. These pricing tendencies, have been established due to the increased demand on health insurance policies, a fact which insurers exploited, to increase their profit margins and the agreements signed with  privately owned clinics, as regards to pricing policy issues and doctors’ compensations.

Privately owned clinics appear fragile at this time, in the negations with insurers, mainly due to the debts of EOPPY, as well as the increased pharmaceutical expenditure. The reformations on the public health sector are essentially leading an increasingly number of people towards private insurance policies, resulting to the health sector to continue to have a development rate of 15%-20%, as it did in 2013.

Competition

An increasing number of   “Life and Non-Life” insurers  are now more interested in medical plans, and competition is no longer formed according to premiums, but mainly according to benefits and coverage. Thus many health insurance policies may have lowpremiums, but are restricted in covering amounts up to 100.000-150.000 euros, or to second and third rate rooms, while most companies are oriented in utilising the right provided by the official legislation, to offer selected hospital beds at public health institutions.

The competition with companies providing “medical cards” regarding diagnostic exams, is still an “unresolved issue” on the insurance sector. Insurers consider that there is illicit competition, but health card companies do not essentially compete insurers, but mainly banks, which provide the option of diagnostic examinations to those who make savings deposits.

As regards to the automobile sector, the tendency to reduce premiums has deflated, following the interferences of the supervising authority (Bank of Greece), while the companies are essentially orienting competition in formulating competitive “packages”. However, the competition in said sector remains intense, since there is a rise in products offered via the internet compared to conventional sale networks, while during the past years bank networks have entered the market. Car insurance premiums for 1.400 cc  have seen over 10% decrease in total in the past two years, while simultaneously many companies have reduced the coverage of “deluxe” packages.

Click here for the Greek article.

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