Insurers want transitional period for surety capital directive
Insurers want transitional period for surety capital directive
4/9/2003 13:15
Greek insurance companies will be required to roughly double their minimum surety capital to 3 million euros, according to an EU directive which comes into force on January 1; the current levels are 1.6 million and 1.2 million euros for the life and general insurance segments respectively. The directive must be incorporated into national legislation by the end of the month. The measure is estimated to affect about one-third of existing Greek insurers. The Association of Insurance Companies of Greece has asked for the five-year transition period provided in the directive to be exhausted and for the minimum capital to be raised to 6 million euros for newly founded companies. Industry representatives said the lack of liquidity makes immediate compliance to the directive prohibitive.

Related news

NEWSLETTER