The Insurance Industry in Cyprus

What important issues is the insurance industry facing today?

No matter where you look in the world, you will find that the insurance industry is one of the sectors most affected by political, technological and demographic developments. We often tend to refer to these issues in a theoretical context, but overlook that in the medium term there are very practical repercussions that require immediate planning.

Technological developments are advancing fast and everyone is talking about fintech, the broad concept that includes the offering of modern banking and financial services in an open-market mode, together with new technologies such as the Internet, mobile telephony, the cloud or open source software.

In this ever-changing environment, balances are changing. Companies, such as ours, which are big in Cyprus but small in the world, have an obligation to reposition and reinvent themselves by maintaining the relationship of trust they have built with their customers.

At the same time, automation or big data implementations mean that risk is minimized in many functions and therefore insuring will become unprofitable. We need to plan in advance and find what our vital, long-term profitable areas are, focus on modern products and services, and convincingly address new audiences that are becoming familiar with a different way of life, away from old habits.

In Cyprus, we have to deal with issues such as demographic aging, which causes a number of consequences for our industry, as well as with the supplementary private pensions which will be an essential reality for thousands of our fellow citizens in the near future. In the short term, the GHS creates a new insurance pillar, and we are following its impact on the market with great interest.

How has the ever-growing industry supervision shaped the industry?

First of all, we should mention that the creation of the Single Insurance Supervisory Authority by the Minister of Finance is an important step towards a more efficient industry operation. This was the insurance community’s long-standing demand. The new Authority has the tools to create a complete, comprehensive and long-term insurance framework that will benefit the customers and companies that respect our market’s operating rules.

At the same time, European directives will continue to be issued in an effort to homogenize and harmonize the single market. Adaptation is always a constant challenge for small European insurance companies as it requires more management resources and constant changes.

At EuroLife, we have succeeded in introducing a dynamic improvement program so that we are always one step ahead of upcoming developments. We intend to remain at the top for many more years to come, so everything points to a common goal.

Continuing education and the introduction of new standards is now part of our everyday work, since “everyday work” for us is a long process of transition to a new, more personalized and much more flexible model of operation.

How will the GHS affect the insurance industry and what changes are expected?

The GHS is a major change in our country’s insurance industry and we take it seriously into our plans. So far, private home insurance data are particularly positive, and the health sector is on a steadily rising course. For example, 2018 results show an increase of 12,6% in health premiums compared to 2017. This increase is certainly reflected in EuroLife’s results, which is not strange as we offer the medica health insurance plan.

No one yet knows how the GHS will develop in its final form, and who and how many doctors and hospitals will participate. Either way, no coverage will be offered until June 1, 2019, and even then, coverage will be limited to primary care. GHS inpatient coverage will start in June 2020.

Speaking of our own product, I believe that it will retain its competitive advantages in the future so as to become an attractive choice for individuals and businesses alike: full medical and hospital coverage, and options for the personal, specialist doctors and hospitals that customers want all over Cyprus. When every minute counts, medica offers quality, speed and comfort, and saves time during the hospitalization process without waiting lists. Clients also do not need to follow the GHS procedure which requires a referral from a personal physician.

In short, the private sector will offer flexibility, speed, quality and options. It will be up to every individual to choose the investment they want to make in their own future, for both their own health and for their family’s health.

We will always be there for them.