Based on the IOBE research on the economic & social footprint of Private Insurance in Greece in 2022
The study carried out by the Foundation for Economic and Industrial Research (IOBE) highlights the important contribution of the insurance sector to the Greek economy and society, a contribution that is highlighted with special emphasis every year on 11.11, a day that has been instituted as “Insurance Day”.
According to the conclusions of the study on Economic & Social Footprint of Private Insurance in Greece in 2022the sector offers substantial support to the Greek economy and society, provides protection to individuals, businesses and organizations and contributes catalytically to entrepreneurship, economic development and social stability.
Based on the results of the study, Private Insurance in Greece:
It protects businesses and citizens
Greek insurance companies form a safety net for businesses and citizens and pay significant compensations every year to policyholders, households and businesses. The total compensation and benefits of the insurance companies in Greece is estimated at €2.2 billion per year.
A typical example is the recent catastrophic events (forest fires July – August 2023 & bad weather “Daniel”), for which the compensation estimate totals over €420 million.
It creates added value for the economy and boosts employment
The total contribution of the private insurance sector to the Greek economy in 2022, beyond compensation, is estimated at €2.5 billion.
For every €1 of added value in the private insurance sector, a total of €3 is created in the Greek economy.
At the same time, the total contribution of the value chain of the insurance industry to employment is estimated at 49.7 thousand jobs. Each direct job in the private insurance sector supports another 5.7 jobs in the Greek economy.
It invests in the economy and contributes to public revenues
The investments of the insurance companies operating in Greece amount to €17.4 billion. In terms of public revenues, the total contribution of the sector is estimated at €1.12 billion, constituting 2% of the state’s tax revenues.
It has solvency and high reliability.
Insurance companies have almost twice as much capital as required by law, have one of the highest solvency ratios in Europe (184.6%)* and are supervised by the Bank of Greece, based on the strict European Solvency II rules.
The President of EAEE Mr. Alexandros Sarrigeorgiou stated in this regard: “On this year’s Insurance Day, we honor the insurance market and the professionals who work in it and highlight the important contribution of the Greek insurance market to society and the economy, as reflected in the IOBE study. Every day, we fulfill our mission, compensating our policyholders with €6 million. We contribute to the country’s GDP and public revenues while at the same time being a major investor and employer. We offer a lot and we can offer much more through cooperation with the State.”
THE General Director of IOBE Mr. Nikos Vettas stated: “The purpose of the study prepared by IOBE is to examine the contribution of the insurance sector to the economy and society, mainly in terms of contribution to GDP, employment and public revenues. This footprint is multifaceted and intense and overall the activity of the sector is of critical importance for the Greek economy and more broadly for the country. Given the high contribution of private insurance, but also its low level of penetration compared to the most developed European countries, the scope for strengthening the sector’s contribution to the development of the Greek economy is huge.”
*according to the Report of the Bank of Greece
Read the study HERE and the related infographic HERE
Tags: Insurance Day contribution private insurance sector Greece important multifaceted
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