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Greece introduces the mandatory supplementary pension insurance as well

01 October 2013 / 22:10:04  GRReporter
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"Since the welfare state has collapsed, in a society in which the market was in the shadow of the state "half-free" provision of pension and health care services to all without having the necessary reserves or capital, the Greek insurance market is now presented with an incredible chance to show dignity and fill that vacuum. This is the way in which the share of the insurance market in Greece’s GDP amounting to 2.3% today will reach 8 %, i.e. the European average," noted Sarrigeorgiou.

"As a market we must offer customers transparency, clear negotiations, products adapted to the economic reality, well-trained, selected and reliable insurers; we must train our customers because, although insurance seems to be a luxury product today, its absence may be disastrous for society," said the Chairman of the Association of Insurance Companies.

New institutional framework and reasonable action

The necessary prerequisite for the organization of pension funds will be the adoption of a new legislative framework , which will provide for the way of the establishment of the specialized companies, their regime of operation, the conditions under which they will manage their reserves, as well as for the control procedures by competent authorities so as to ensure their reasonable activity and to avoid blows that could lead to the collapse of entire systems.

Mechanism to guarantee private pensions

One of the issues that the government will have to tackle is the introduction of a mechanism to guarantee private pensions. Let us recall that Guarantee Fund "Life" is functioning for the insurance companies at present, which had to be involved in the consequences following the closure of two insurance companies, namely the "Aspis" group and VDV Leben International AEAZ.

Everything is ready

As to the timing of the restructuring of the pension system, sources claim that if the government decides to take swift actions, the market is ready to immediately respond to the new conditions by taking on the role that insurance companies in other major European countries have taken on.

 

Tags: Insurance marketPension fundsAssociation of Insurance Companies
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