ELSTAT: Around 1.0 million homes insured in Greece

Around 1.0 million homes are insured in Greece out of a total 6.4 million homes (2011 census), Hellenic Association of Insurance Companies said in a report.

The report said that for the above contracts, total sums insured for fire (building and content) and for miscellaneous financial losses was 249 billion euros, of which 112 billion was for home insurance and 137 billion for other risks.

For all of the above contracts, 10.5 thousand claims were filed and 23.6 million euros were paid in claims, while outstanding claims amounted at 40.0 million. Claims figures refer to the estimate for the first year (2016) that the policy came into force. Given that not all insurance policies had expired by the end of 2016, the number of claims reported and total claims amounts as well will evolve, a fact which should be taken into account in estimating the final claims’ cost.

Based on the statistical study of the claims’ evolution over the last five years, it appears that, on average, the claims increase by the end of the second year at a rate of 1.92 compared to the previous year. Subsequent processing of the 2016 data will reassess the final claims cost. The survey on the claims’ causes showed that in most cases it had been: thefts, weather and fire. Average claim (according to the first year’s estimation) reached 6,049 euros (2,128 for homes, 9,929 for other risks). The figure is likely to be differentiated on the basis of more available information.

According to the claims evolution study, total claims for the year can be estimated satisfactorily after 3-4 years from the policy’s issuance date.

Property insurance is a very important branch of the Greek insurance market in which 34 insurance companies operated in 2016 in the form of the Société Anonyme or the Branch of a foreign company.

Premium production per distribution channel was as follows: bancassurance accounted for 42.6 pct, independent insurance intermediaries (brokers, agents) accounted for 41.5 pct, tied agency 10.5 pct, and direct sales 5.4 pct.