Myrto Hambaki is the Head of Financial Affairs & Life Branch at the Hellenic Association of Insurance Companies. The document discusses the challenges facing the Greek economy and insurance sector, including continuous deficits, rising public debt, tax evasion, and entering the EMU without adequate preparation. This has led to issues like unemployment rising to 30%, decreasing competitiveness, unpredictable consumer behavior and spending, and a drastic decrease in purchasing power. For insurance companies, there have been increases in cancellations, claims, fraud, and need for capital injections. The document argues that opportunities exist in covering social security gaps, enhancing consumer trust, and redefining products, but companies must realize, accept, and adapt to the challenges through re

1. Myrto Hambaki
Head of Financial Affairs & Life Branch
Hellenic Association of Insurance Companies

2. Crisis Scene Investigation

3. The DNA of the Greek economy
Continuous deficits
Continuous deficits
Rising of public debt
Rising of public debt
No expenditure
No expenditure Tax evasion and no
Tax evasion and no
control measures
control measures measures to contain itit
measures to contain
Entering the EMU without
Entering the EMU without
adequate preparation
adequate preparation
Continuous decrease
Continuous decrease
of competitiveness
of competitiveness

4. Consumer behavior investigation
Unemployment will keep The income
rising and by the end of 2012 available for
will reach 30 % spending is
unpredictable
Many families
live
absolutely on
their savings
Consumer
Per capita income Confidence
for the country was extremely
19,400 Euros and it low
keeps decreasing Consumer behavior
within 2012 is becoming
unpredictable
Spending pattern Drastical
of consumer decrease in
income has purchasing
changed power

5. Company status assessment
Real estate values
Increase in
cancellations and
surrenders.
Increase in claims
Increase in insurance
fraud
Changes in
distribution
Assets Liability mismatches Threats and emerging
channels
and liquidity management risks
environment (internet)
Pricing adjustments Continuous changes in Inability for long term
legislation planning
Needs for capital
injections Increased bureaucracy Solvency II ahead....

6. Following the leads
Opportunities
Cover the systemic gaps – In Social Security (health &
pensions)
Cover real needs with realistic pricing
Enhance consumer trust Remember that "risk" is
the essence of insurance
(risk management,
diversification, forecasting)

7. Putting together the pieces of evidence
Realize, accept and adapt
Redefine leadership
Reastablish mission and goals
Reinvent the vision
Rethink the communication with the customers
Redefine products and their value proposition
Recreate comparative advantages
Restructure the company
Rebuilt alliances
Recapitalize

8. Case under development
IIS IIS
R S S
|| C R
SS C
RO SS
C RO S
OT C OS S
DO NN OT
E || D O CR OS
CR
CEN E
S CEN
IIS IIS S
S S

9. Thank you
Myrto Hambaki
Contact Details
Tel. : +30 210 3334 123
Mob. : +30 697 2774 080
Email : hambaki@eaee.gr
Web : www.Greekconomics.gr