How much insurance companies pay in compensation for the natural disasters in Thessaly, Evros and Rhodes

September 11, 2023
Written by E.Tsiliopoulos

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How much insurance companies pay in compensation for the natural disasters in Thessaly, Evros and Rhodes

Greek insurance companies may be asked to pay compensation between 300 million and 500 million euros, for the floods and fires that have hit Greece recently. However, the greatest damage concerns the floods in the Thessalian plain, but a full picture of the situation cannot yet be made as access to the affected areas is not possible.

Large supermarkets in Larissa, photovoltaics in the Thessalian plain, hotels in Pelion, other industrial and commercial enterprises, cooperatives have been affected, as well as residences, agricultural machinery and cars. However, the damages do not only concern the facilities, but also business interruption (BI) in hundreds of businesses, damages that raise the cost of compensation.

As insurance market circles note, it is very difficult to calculate when businesses will start operating again.

The same circles estimate that insurance companies will be pressured by reinsurers for increases in reinsurance premiums for the next year which means an increase in premiums.

It is noted that the vast majority of homes in Greece are uninsured, only 15% of homes are estimated to be insured for natural disasters. However, businesses show greater insurability, while many of them also have business interruption insurance.

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