Insurance laws Greece
Greece's insurance sector operates within a robust legal and regulatory framework, aligning with European Union directives to ensure financial stability, consumer protection, and market transparency. Here's an overview of the key legislation and regulatory bodies:
🏛️ Key Insurance Legislation
1. Law 4364/2016 – Transposition of Solvency II
Law 4364/2016 transposes EU Directive 2009/138/EC (Solvency II) into Greek legislation, establishing a comprehensive regulatory framework for insurance and reinsurance undertakings This law governs aspects such as
Authorization and Supervision: Outlines the requirements for obtaining and maintaining authorization to operate as an insurer or reinsurer in Greece
Prudential Requirements: Sets standards for capital adequacy, risk management, and governance to ensure the financial soundness of insurance entities
Market Conduct:Regulates the conduct of insurance business to protect policyholders and maintain market integrity
Cross-Border Operations: Defines the conditions under which insurance undertakings from other EU Member States can operate in Greece, either through a branch or under the freedom to provide services
2. Law 4583/2018 – Insurance Distribution Directive (IDD)
Law 4583/2018 transposes EU Directive 2016/97 (IDD) into Greek law, regulating the distribution of insurance products Key provisions include
Intermediary Requirements: Sets standards for insurance intermediaries, including brokers and agents, to ensure they act in the best interests of policyholders
Product Oversight:Requires insurers and distributors to establish product oversight and governance arrangements to ensure that insurance products meet the needs of the target market
Disclosure Obligations:Mandates clear and transparent information to be provided to consumers regarding insurance products
3. Law 5116/2024 – Mandatory Insurance Against Natural Disasters
Law 5116/2024 introduces mandatory private insurance against natural disasters for certain entities
Businesses: Companies with annual gross revenue exceeding €500,000 must insure at least 70% of their assets against risks such as forest fires, floods, and earthquakes
Private Vehicles: For the first time, private-use vehicles are required to have insurance covering natural disasters, based on the vehicle's market value Non-compliance with these requirements may result in fines and exclusion from government aid related to natural disaster damages
🏦 Regulatory Authority
Bank of Greece – Insurance Supervision
The Bank of Greece is the primary supervisory authority for the private insurance market, responsible fo:
Prudential Supervision Overseeing the financial stability and solvency of insurance and reinsurance undertakings operating in Greec.
Market Conduct Ensuring that insurance entities adhere to legal and regulatory requirements, protecting policyholders' interest.
Cross-Border Oversight Monitoring the activities of foreign insurance undertakings operating in Greece under EU single market provision. The Bank of Greece's Directorate of Occupational and Private Insurance Supervision (OPISD) carries out these responsibilitie.
📄 Accessing Legislation and Regulatory Information
For detailed information on insurance laws and regulations in Greece, you can visit the following resourcs:
*Laws of Greece: Official publication of Greek legislatin.
*Bank of Greece – Private Insurance Supervision: Provides information on supervisory practices and regulatory framewok.
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