Blurry landscape on private insurance sector

Blurry landscape on private insurance sector

Blurry remains the landscape on the private insurance sector, as there has been no significant announcement concerning the Ministry of Finance’s legislative initiatives on the Supervision of Private Insurance in Greece and the formation of the Guaranty Fund for Private Life Insurance Companies.

Although the government claims that the forthcoming bill will provide a definite solution to the problem of Aspis Pronia’s and Commericial Value’s customers while ensuring there will be no such “dysfunctions” in the future, it hasn’t made its intentions know yet.

At the same time, the incentives that were supposed to be provided to other companies to  motivate them to buy the life portfolio of Aspis Pronia and Commercial Value remain also unknown. Major market players estimate that the incentives will be limited to the assets of the two companies, which will not be very attractive to the insurance companies

The Hellenic Association of Insurance Companies expressed its dissatisfaction concerning the proposed measures included in the last bill draft,  sent to the insurance companies mainly for informational purposes.

The “apples of discord” are the points concerning the retroactive effect of Guaranty Fund, the annual contribution of 1.5% of the life premiums to the Guaranty Fund and the use of the reserve of the Supervisory Committee of Private Insurance (PISC) in order to compensate the hospital programs of companies whose licenses have been revoked.

Sources mention that insurance companies still consider the possibility of recourse to European courts,  in order  the Guaranty Fund  not to apply retroactively. This way the deficit of Aspis Pronia and Commercial Value will be covered.

On the same note, the Union calls for bill changes, stressing that “any further burden for companies and the insured threatens the industry in general”.

Meanwhile, the Steering Committee of Former Aspis Pronia Employees expressed its strong opposition about Aspis Pronias’s intentions. According to the Union, Ms. Sideri will apply for injunctions against former Aspis employees, so they won’t  get paid their pending salaries or their firing compensations.

Click here for the Greek article.

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