PISC No More: New law to be voted by the parliament

PISC No More: New law to be voted by the parliament

The HAIC (Hellenic Association of Insurance Companies) is analyzing the changes about to be done by the government in order to give the supervision of the insurance companies from the PISC (Private Insurance Supervision Committee) to the Bank of Greece. The law has been handed in for approval and will be voted by the Greek parliament shortly.

According to this new law, two months after being voted by the parliament, Bank of Greece will supervise the private insurance companies from then on and the PISC will only handle urgent issues. As far as the Life Branch is concerned and the issues the policyholders of the companies that were shut down by the PISC (ASPIS, Commercial Value, General Union, General Trust) there is the proposition of a joint fund where all the insurance companies operating a Life Branch can fund accordingly to their value of their policies. This benefits the policyholders so as if their insurance company stops working, they are covered by this joint fund. They then can transfer their policy to another company. (ASPIS’ policyholders are not covered and now blame the state for not having taken the measures to insure that they would not lose their money they gave to buy a life insurance policy. Moreover people who payed for hospital bills and were about to be compensated by ASPIS Insurance Company did not take their money back as the company closed.)

According to the new law, the insurance companies will be obligated to pay 1,5% of each life insurance policy to this joint fund. As far as the portfolios of the closed insurance companies are concerned, the transfer should be completed three months after the order of the president of Bank of Greece (as being the supervisor of the private insurance companies).

Click here for the Greek article.

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