Property and Casualty Insurance Market in Greece - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Property and Casualty Insurance Market in Greece - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The property and casualty insurance market in Greece is estimated to register a CAGR of approximately 3% during the forecast period.

Key Highlights

• Property insurance is a very important branch of the Greek insurance market. In 2018 premium production per distribution channel was as follows: independent insurance intermediaries (brokers, agents) accounted for 47.7%, bancassurance accounted for 37.3%, direct sales stood at 7.5%, and tied agency at 7.4%. Motor insurance is one of the most important insurance branches in Greece. Motor insurance premium represents 49% of the non-life insurance business and 26.3% of the total premium (life and non-life insurance), as of 2018.
• Total premium of motor insurance, motor third-party liability (MTPL) for 2018 was EUR 1.07 billion, an increase of 0.4% compared to 2017. Over the same period, the total non-life business recorded production of EUR 2.2 billion, an increase of 3.9% over the previous year. In Q3 2019, the non-life insurance gross written premium accounted for 51.8% of the total EUR 1.55 billion, or 1.4% more year-on-year.
• International Finance Corporation’s investments in insurtech include equity participation in Hellas Direct, a technology-driven direct insurer writing motor and property insurance in Greece and Cyprus. The company’s innovations include offering short-term policies and 48-hour claims settlements. In 2018, IFC provided a EUR 3.5 million investment in Hellas Direct, part of a USD 7 million equity offering by the company to help expand its offerings within the Greek insurance market. The investment will help diversify Greece’s financial sector and make car insurance accessible and affordable to more Greek people and improve customer service.

Key Market TrendsIncrease in Motor Vehicle Usage

In recent years, motor vehicle usage has been increasing year-on-year in the country, and 49% of the non-life insurance business comes from MTPL (motor third-party liability). The government has made motor third-party liability insurance and aviation liability insurance compulsory. Since motor vehicle usage is increasing, as a result, subscription of MTPL or any motor insurance is expected to rise. After six years of recession (2008-2014), Greece returned to growth rates (+0.4%) in 2014. However, this trend was interrupted in 2015 and the economy ended the year with a recession of -0.2%. Later it slightly recovered, and in 2017, the GDP was at 1.4% and non-life insurance saw growth as it is linked with the economy. In Greece, motor insurance holds the highest share in non-life, so it is expected to increase during the forecast period. Since 2016 (MTPL) motor third-party liability claims cost slightly reduced from EUR 1,695 to EUR 1,400 in 2018, and this is expected to recover in the coming years.

Insurance Penetration is Low and is an Opportunity to Expand Business

The Greek economy has been in recession since 2010 and has the lowest level of insurance penetration in the European Union. Nevertheless, there are pockets of growth and optimism. The financial crisis in Greece was a big opportunity for businesses to disrupt the existing insurance business model. In Greece, insurance penetration is low, and it turns out to be an opportunity for insurers to expand their businesses and increase their market shares.

Competitive Landscape

The report covers the major players operating in the property and casualty insurance market in Greece. The market is fragmented, due to low penetration in the insurance market and many other factors.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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