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Reform Support

Supporting reforms to develop well-regulated, stable and competitive financial markets

Funding Programme
Technical Support Instrument (TSI)

Improvement of insurance conduct supervision in Greece

The European Commission supported the Bank of Greece in better understanding the causes of the limited insurance penetration in the national market, and in strengthening its conduct supervision activities. To this end, EIOPA and the Commission offered support for the enhancement of the conduct of business supervisory tools and methodologies, and for the identification of actions aimed at reducing the insurance protection gap. 


The Greek private insurance market comprises 35 insurance undertakings managing assets for about €19 billion and having insurance liabilities of more than €14.5 billion. Nevertheless, the total annual written premiums are about 2.5% of the Greek GDP, which is low if compared to other EU countries (about 7.5% of EU GDP). This small percentage reflects the fact that the Greek citizens and enterprises are underinsured with regard to almost all perils and adverse future events (incl. e.g. for earthquake or wildfire), except for compulsory motor third party liability insurance (MTPL). Aside from demand-driven factors, detrimental consumer practices might reinforce lack of trust among consumers, calling supervisory authorities to step-up their conduct of business supervision in line with the requirements set forth in the relevant EU regulatory provisions.

Support delivered

The Commission has collaborated with EIOPA to offer Greece support in the reform of its insurance conduct supervision and in identifying the causes of the insurance protection gap. The project lasted around 18 months, and it entailed the development of enhanced methodologies for the assessment of conduct of business risks within the insurance sector, the analysis of digital distribution trends in the concerned market, and an assessment of the causes of the insurance protection gap, complemented with recommendations on policy options to address them. The Commission and EIOPA also organized interactive training sessions and workshops with peer authorities on conduct of business supervisory methodologies, with a view to promote exchange of good practices and sharing of experiences. 

Results achieved

The project enabled Bank of Greece’s experts and supervisors to adequately and efficiently implement and deploy the necessary tools (e.g. supervisory frameworks, procedures, tools and methodologies) to identify and mitigate risks through the application of applicable standards in the area of insurance conduct supervision, and to adopt relevant policies aimed at reducing the natural catastrophes protection gap. By strengthening its regulatory environment as well as its supervisory capacity, Greece will contribute to ensuring a higher degree of protection for policyholders that in turn will result in a more efficient, resilient and stable financial sector.