Insurance Companies Face €5 Billion Capital Requirement Challenge

In order to remain sustainable, insurance companies in Greece may require an additional €5 billion in supervisory capital if immediate measures are not implemented. This was highlighted by Alexandros Sarriyorgiou, President of the Union of Greek Insurance Companies (UGIC), during the 25th Insurance & Reinsurance Meeting in Hydra on May 22, 2025. If premium increases continue to fail to cover rising costs, some insurers might have to limit their offerings, while others could exit the sector altogether. According to industry experts, the current market calculation points to a €5 billion shortfall, necessitating immediate financial intervention rather than waiting for portfolio maturity over the next decade. The ongoing rise in claim costs continues to burden the industry, prompting premium hikes but still falling short. Furthermore, the insurance tax adds extra strain on customers, who lack tax relief for their premiums and face a 15% insurance tax. Addressing healthcare cost drivers is crucial, including adopting Diagnosis Related Groups (DRGs) and increasing available beds in Attica through public-private partnerships with insurers. These measures aim to enhance competition and efficiency in healthcare delivery.