Yannis Stournaras: Challenges for the Greek Insurance Market and for the Supervisors

Why It Matters

A resilient, well‑capitalised insurance market underpins Greece’s fiscal stability and enables the sector to fund climate‑adaptation and digital innovation, crucial for broader EU financial health.

Key Takeaways

• Greek insurers hold $24bn assets, SCR coverage at 173%
• Protection gap remains high despite tax incentives and mandatory coverage
• New Solvency II review and IRRD reshape supervision by 2027
• Digital transformation and DORA drive cyber‑risk resilience in insurers

Pulse Analysis

The Greek insurance market has emerged from the pandemic and the Ukraine‑driven energy crisis with a solid capital base, reporting roughly $24 billion in assets and a Solvency Capital Requirement coverage ratio of 173 percent. These figures signal strong balance‑sheet health, yet the sector still grapples with a pronounced protection gap, especially in natural‑catastrophe lines such as earthquakes, floods and wildfires. Policymakers have introduced tax incentives and mandatory coverage rules, but uninsured losses continue to strain households and public finances.

Regulatory evolution is set to reshape the operating landscape. The EU‑wide Solvency II review, expected to be transposed by January 2027, will introduce proportionality measures, sustainability incentives, and streamlined reporting for smaller firms. Simultaneously, the Insurance Recovery and Resolution Directive mandates recovery plans and enhances supervisory tools, bolstering policyholder protection. Together, these reforms aim to increase resilience while reducing administrative burdens, positioning Greek insurers to compete more effectively across Europe.

Digital transformation and climate risk management are now strategic imperatives. The DORA regulation, active since January 2025, forces insurers to adopt robust cyber‑risk frameworks and conduct regular resilience testing. Leveraging AI and big‑data analytics can improve underwriting, pricing and fraud detection, while ESG‑focused investments help channel premiums into green projects. By closing the protection gap and embracing technology, Greek insurers can not only safeguard the economy but also become pivotal drivers of sustainable growth in the post‑pandemic era.