“The Hellenic Insurance Market is completely reliable and ready to meet the needs of the new era,” said Alexandros Sarrigeorgiou’s president of the Association of Insurance Companies, in an interview with RES-EIA, talking about their natural disasters, their impacts and impacts. insurance for them business.
The president of the UAE, on the occasion of the compulsory application of insurance for earthquakes, floods and forest fires, for businesses with a turnover of over 500,000 euros, from June 1, 2025, underlines, “the cost of prevention through insurance is incomparably less than the cost”.
As Mr Sarrigeorgiou recalls, the regulation is implemented since June 1, 2025 and provides for the compulsory insurance of all businesses with an annual turnover of more than 500,000 euros, for damage from natural disasters and in particular earthquakes, floods and forest fires. The obligation concerns any form of business that exceeds this financial limit, and are provided for administrative penalties and fines in the event of non -compliance. In addition, businesses that do not have such insurance coverage will be excluded from any form of state relief in the event of a natural disaster.
“The measure of compulsory business insurance, coupled with the ENFIA discount on homes insured for natural disasters, is part of a comprehensive prevention strategy that should concern us all – and in particular those who are not able to cover their own resources from their own resources. businessman.
According to data, although Greece has been recognized as one of the most exposed EU countries at natural dangers, in particular earthquakes and floods, however, a large proportion of small and medium -sized enterprises remains uninsured and exposed to dangers it cannot cover by itself.
“Today, less than 20% of homes are insured for natural disasters, while business insurance rates are also low – although the damage is disproportionately high,” Mr Sarrigeorgiou said.
Particularly for businesses located in high -risk areas that are having difficulty finding insurance coverage (the so -called “difficult dangers”), as Mr Sarrigeorgiou reveals, the UAE is in the process of processing a special shape, which can take such a risk.
“This is a venture that requires cooperation with the state, as the public and private sector must unite forces. We seek a practical, sustainable and just framework that will enhance the universal implementation of the measure and support entrepreneurship in the most vulnerable areas, ”as the UAE president explains.
In detail, Alexander Sarrigeorgiou’s interview with RES-EIA and journalist Evi Papadiafakis:
What is the picture today around the insurance of natural disasters? What risks do Greek companies face most and what is the response of the insurance market to date?
Natural disasters are now the new regularity and this is something we see around the world. Greece is no exception. Recent phenomena, such as “Janus” and “Daniel”, left huge disasters behind: only by “Daniel” the total damage amounted to about 2 – 2.5 billion euros. Of these, insurance companies compensated about 370 million euros, of which 340 million were for businesses.
A large proportion of small and medium -sized enterprises, however, remain uninsured, exposed to dangers that it cannot cover by itself. Today, less than 20% of homes are insured for natural disasters, while business insurance rates are also low – although the damage is disproportionately high.
Greece has been recognized as one of the most exposed EU countries at natural dangers, especially in earthquakes and floods. And what we all need to understand – state, businesses and citizens – is that the cost of prevention through insurance is incomparably less than the cost of rehabilitation.
Mr President, as of June 1, 2025, compulsory business insurance for natural disasters has entered into force. What exactly does the new setting predict? What is and what are the goals of the measure?
Insurance is a basic prerequisite for the durability and viability of the business, as coverage ensures that, after a major disaster, activity can be restored faster, jobs to be maintained and the business returns to normal. So we are talking about a way of protecting entrepreneurship and maintaining economic continuity.
In this spirit, the new regulation, which is implemented as of June 1, 2025, provides for the compulsory insurance of all businesses with an annual turnover of over 500,000 euros, for damage from natural disasters and in particular earthquakes, floods and forest fires. The obligation concerns any form of business that exceeds this financial limit, and are provided for administrative penalties and fines in the event of non -compliance. In addition, businesses that do not have such insurance coverage will be excluded from any form of state relief in the event of a natural disaster.
The message is that the protection of the business is not only a matter of legislation, but also the self -evident responsibility of every entrepreneur to the survival of their activity. The measure of compulsory business insurance, coupled with the ENFIA discount for homes insured for natural disasters, is part of a comprehensive prevention strategy that should concern us all – and especially those who are unable to cover a great deal of damage to their business or home from their own resources.
Is the Greek insurance market ready to respond to this new landscape? How much more are the insurance companies operating in Greece?
The Greek insurance market is completely reliable and ready to meet the needs of the new era. We have strong capital reserves – over 3.5 billion euros – and we have proven to be able to compensate quickly, fairly and with transparency.
In addition, insurance companies are also supported by the powerful reinsurance system, which carries part of the risks to large international reinsurance groups, thereby enhancing the ability to take more risks and absorption of major damage.
But beyond the chapters, we have something equally critical: know -how, systems and especially people, appropriately trained to evaluate damage, to approach the affected areas immediately and to manage the insured’s requirements. This organizational and operational competence is something that – and is perfectly reasonable – does not have the state.
In the case of “Daniel”, for example, the State did not have sufficient potential experts to immediately record damage. The insurance market, on the other hand, was there from the first moment, immediately activating the whole system.
However, it is not enough to be ready at the operational level. At the same time, there is a great national effort to inform – both businesses and citizens – on the dangers of natural disasters, state measures, the value of prevention and the essential role of insurance. People need to know what is at stake, what tools they have in their hands and how they can be protected.
To this end, the Association of Insurance Companies of Greece (UAE) has already taken a relevant initiative with information campaign through social media (Some), with the aim of raising awareness and activation of society towards a question that concerns us all – and in particular those who do not have the potential to do so.
It is also important to monitor the implementation of the new measures and to intervene where weaknesses are identified. The state must substantially support their implementation – not only with institutional interventions but also with targeted information. The shielding of society and the economy over natural disasters is not a luxury, it is a priority.
But there are also cases of businesses – the so -called “difficult risks” – that have difficulty finding insurance coverage. What is foreseen for them?
This is a completely real and serious issue that has been of concern to us from the first moment. There are businesses, mainly in high -risk areas, which are facing problems in finding coverage from the private insurance market. This is what we call “difficult risks”.
As a UAE we have already begun the solution process for these cases. We are in the process of processing a special shape that can take on such risks. This is a venture that requires cooperation with the state, as the public and private sector must unite forces. We strive for a practical, sustainable and fair framework that will enhance the universal implementation of the measure and support entrepreneurship in the most vulnerable areas.
UAE explains what businesses need to know about compulsory insurance against natural disasters that apply from 1.6.2025
The Association of Insurance Companies of Greece, on the occasion of the adoption of compulsory business insurance against natural disasters, has created a brief and simplified driver to inform businesses that has been posted on its website.
As of June 1, 2025, all businesses with an annual turnover of more than EUR 500,000 are required to have an insurance policy covering damage from natural disasters – forest fire, flood and earthquake – at least 70% of the value of their assets. The cover obligation concerns privately owned installations, equipment, raw materials, goods, means of production, business vehicles and stored products.
What do business should do:
- Contact their insurance company or their mediator to choose an appropriate insurance plan.
- If they already have a contract, to confirm that the coverage meet the requirements of the law.
- To consider whether the 70% coverage responds to the real needs of the business to avoid the risk of undercover.
The UAE driver is available in digital form and through the official social networks of the Union.
Source: RES – EIA