Greece Insurance Report Q4 2017
BMI View: Despite facing significant economic challenges, we expect Greece's insurance market to see agradual recovery over the forecast period to 2021, in line with the wider strengthening of the Greekeconomy as well as consumer and business confidence. We expect most areas of the market to strengthen asunemployment begins to fall, leading to a gentle uptick in household spending. We believe this environmentwill create opportunities for local insurers after several years of stagnant growth, with opportunities fornew business within basic lines such as motor vehicle and property insurance. Meanwhile, the government'songoing austerity programme and the stripping back of state welfare provision will create longer-termopportunities in discretionary lines such as life and health insurance, though these markets are currently ata low level of development compared with other EU nations.
Key Updates And Forecasts
In June 2017, the National Bank of Greece (NBG) completed the sale of its majority holding in insurancesubsidiary Ethniki Insurance. The deal, which has been under discussion for several months, saw NGBdivest 75% of its holding in Ethniki to Dutch-US consortium Calamos-Exin for a reported EUR718mn.NGB's decision is part of the Bank's strategy to dispose of non-core assets and focus on domestic bankingoperations in line with the conditions set for it by creditors.
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