As the risk of climate crisis grows, the insurance coverage It becomes more expensive and on a case -by -case basis, it is the conclusion of successive years of great natural disasters.
Before this year’s fires burning Greece, and especially after Daniel’s floods in 2023, large parts of the country are treated by the market as “red” zones, thereby increasing the difficulty of contracting insurance coverage of housing and businesses, which means that the account is “replaced”.
In the face of the rapid increase in the intensity of climate risk, the government has promoted steps to grow the base of the insured. In homes, the strongest motivation is the discount on ENFIA for anyone who secures his home against earthquake, fire and flood. The framework provides for a 20% reduction for real estate with taxable value up to EUR 500,000 and 10% for higher values, even if insurance is not 12 months (at least three months in the same year). To measure the discount, the insured capital must reflect the cost of reconstruction, with a minimum of “threshold” which, this year, remains on the transitional base of 900 euros per sq. M. According to the official instructions of AADE.
In addition, from June 1, 2025, businesses with gross revenue of more than 500,000 euros must be insured for a forest fire, flood and earthquake, at least 70% of their assets (buildings, equipment, stocks, business vehicles). Exceptions are only provided in cases of actual inability to cover, as they specialize in JMD, although logic remains the same: no insurance, there is no state assistance for damage.
Evidence shows that motivation policy is working, but on a low basis. At the end of March 2025 1,199,334 active residence contracts were recorded, with the rate of insurance coverage reaching only 18.2%, ie more than eight out of ten houses remain uninsured.
Although the rise to the number of contracts is real, the problem lies in their availability and their pricing for the most vulnerable zones in which they become more difficult.
The result is on the one hand, due to the climate crisis that states are pushing for expanded insurance coverage, but on the other, the same reason (the climate crisis) putting an embankment on the insurance.
Where is the problem being found?
Why is this happening? Because insurers invoice in terms of frequency and intense phenomena and reinsurance costs. When they are launched, there are not only insurance coverage denials for entire areas (eg Thessaly) but also greater exemptions, stricter terms and conditions of premiums. For owners this means either being insured in wider terms (in good case) or remain exposed to risk and lose the discount on ENFIA which requires a full contract.
To solve the impasse, at the level of Europe, the proposals that have fallen on the table relate to the creation of a European Natural Disaster Management Mechanism with public-private reinsurance of the high risks and an additional infrastructure fund. Given that only about 25% of natural disaster damage in the EU has been insured in recent decades, the target is double, and not to dry national markets from available coverage and not to launch public spending every time an extreme phenomenon is hit.