greece premium, benefits and claims paid in
DESCRIPTION
Greece Insurance marketTRANSCRIPT
Greece premium, benefits and claims paid in 2013
Total premium Total benefits and claims paid
Life premium Life benefits paid
Non-Life premium
Non-Life claims paid
€ 4,012 Mln
€ 2,331 Mln
€ 1,754 Mln
€ 1,489 Mln
€ 1,681 Mln
€ 2,653 Mln
Insurance Penetration in Greece Economy
2009 2010 2011 2012 2013 -
50,000.0
100,000.0
150,000.0
200,000.0
250,000.0
2.05%
2.10%
2.15%
2.20%
2.25%
2.30%
2.35%
2.40%
2.45%
5,448.1 5,332.3 4,987.3 4,410.0 4,012.4
237,431.0
226,210.0
207,752.0
194,204.0
182,438.0
2.29%
2.36%
2.40%
2.27%
2.20%
Insurance Premium share to GDP
GWP GDP %
Total Greece gross written premium decreased by 9.02% compared with 2012, reaching € 4.012 bn in 2013.
In 2013, insurance penetration (gross written premium as a percentage of GDP) diminished slightly by 0.07 percentage points in 2013 to 2.20% compared with 2.27% the year before.
Non-Life Insurance
Motor62%
PA & Healthcare
3%
Property22%
Liability3%
Credit1%
Other9%
Non-life premium by Business line-2013
The largest non-life insurance market, motor insurance, totalled €1.438 bn in premium (2013), followed by property insurance with €518 Mln.
Liability & PA market share stood at 3% with premium € 76 Mln & € 61 Mln respectively.
Other LOBs included Marine, Aviation Transit.
Motor Insurance• Motor third-party liability (MTPL), compulsory in Greece, provides financial
protection against claims for physical damage and/or bodily injury resulting from traffic collisions. The loss ratio, for this cover, has increased from 47.1% in 2012 to 60% in 2013.• Additionally, comprehensive motor insurance offers financial protection for first-
party losses and, in some cases, fire, theft and breakdown services. The loss ratio for this segment has increased from 45.2% (2012) to 56.6% (2013).
Average motor claims paid per capita€ 54.50
Average motor premium per capita€ 130
Property Insurance• Property insurance provides protection against risks to property, such
as fire, theft and some weather damage. • This insurance consists mainly industrial and commercial risks.• Non-commercial lines (residential risks) are underdeveloped as
substantial proportion of Greek homes are uninsured or underinsured.
Average property premium per capita€ 47
Market Players • The market is dominated by a handful of companies but is otherwise
highly fragmented, with many companies having a market share of less than 1%.• A number of insurance companies are either owned by or have close
relationships with banks.• Distribution channels consist mainly of brokers and insurance
companies' agency networks
ChallengesSolvency II Solvency II is a EU-wide regulatory regime. This regulation has standardized the calculation of capital requirements/SCR. SCR is the
amount of funds that insurance undertakings are required to hold in the European Union.
The amount of SCR Insurers need to hold will depend upon the risk of Reinsurer defaulting.
The calculation of the capital requirement for this risk will take account of Credit rating of Reinsurer. This rating would determine Reinsurer’s default probability.
Thus, a lower Reinsurer rating would increase the SCR of direct Insurer, which is unfavorable for Cedent.
As Gic Re current rating is below “A”, this may prove to be a threat.