The strengthening employee benefits market

April 2023

According to the 2019 ICAP survey on the "brain drain generation" of young Greeks living abroad, 26% of those leaving Greece have degrees (with 69% holding a Master's or PhD), and work in the fields of business, finance, IT, and engineering. Stronger and improved benefits plans can be an effective tool for retaining the best talent.

Although the Greek Social Security system provides benefits for all risks that are insurable, it generally offers low levels of benefits and services.

Since social security does not provide any lump-sum indemnity coverage and death-in-service pensions can be quite low, a group life insurance contract with a basic term offering coverage of one to four times annual income generally forms the basis for every employee benefit plan in Greece. It is possible to add a rider for accidental death and dismemberment (AD&D) coverage.

Social security only pays a small amount of pension in the event of Permanent & Total Disability (PTD). Typically, a lump sum payment equal to the basic term life benefit is paid out in three installments over the course of three years.

In most cases, the Short-Term Disability (STD) benefit is equal to 80% percent of the gross salary (including the amount received from social security).

The most common plan on the Greek insurance market is a Major Medical Benefits plan, covering both inpatient and outpatient care due to accident, sickness, or maternity. Private healthcare is favored because it is more up-to-date, better equipped, less crowded, and has shorter waiting lists than the public healthcare system.

The projected medical trend rate for 2023 equals 7.5% in Greece (Source: Global Insurer Survey Report. MMB Health Trends 2023). The use of Preferred Providers Organizations (PPO) for In and Out of Hospital Benefits is an effective strategy to control claim expenses and deal with inflation and rising medical cost.

The Greek pension system provides a generous income-independent first-pillar pension and a supplementary pension that is mandatory for employees. Since employer contributions became fully tax-deductible in 2014, companies now regularly offer their employees the option to voluntarily participate in a supplementary third-pillar pension system. Defined Contribution (DC) plans prevail.

The insurance sector has seen significant transformational changes recently, both internationally and in Greece. In 2022, a strong concentration in the Greek insurance market took place. Many Greek insurers reviewed their strategies in response to the unstable interest rate environment, changes in consumer behavior brought on by the pandemic, the recent resurgence of inflation, as well as geopolitical and climate changes.

ETHNIKI, the IGP Network Partner in Greece since 1968, was acquired in 2022 by CVC Capital Partners (www.cvc.com)¹ from the National Bank of Greece. Being a member of global organization, ETHNIKI combines a modern perspective with its traditional core competencies to retain its market leading position in the new era.

The growing Greek economy is expected to increase the penetration of private insurance in Greece. Historically and currently, total market premiums account for only 2.5% of GDP, compared to around 7% in the rest of Europe (Source: OECD Data, Insurance spending Total, % of GDP, 2000 – 2020).

The market appears to be at a tipping point, particularly in the Employee Benefits sector, where the speed of change and the volatility of current conditions highlight the need for immediate decisions.

With approximately 20% market share in group life and health insurance in 2022 (Source:  Association of Hellenic Insurance Companies), ETHNIKI is the largest insurer in Greece. Since it was founded over 130 years ago, ETHNIKI has led the way in the insurance sector and provides comprehensive insurance solutions to satisfy the more sophisticated demands and expectations of the current market:

• Long-standing competence, fast and customized service, reliability, dependability, high-quality products, and security offered to customers.
• Extensive PPO (Preferred Providers Organizations) Network – wide network of reputable diagnostic centers, medical professionals, and hospitals across the nation, including most of the largest private hospitals:
  • A discount of more than 50% off the provider's prices
  • Direct payment of covered expenses
  • No deductibles
  • Simplified procedures
  • High quality healthcare services
• Path to Digitization is being constantly expanding and accordingly the service to the customers is being further enhanced through two platforms:
  • Mythlike Platform:
    • Direct access to policy details including policy coverages, and member information
    • Download forms, get alerts about future premium payments, make online premium payments
    • Connect to the e-Omadika platform
  • e-Omadika Platform:
    • Member’s access to their group pension account
    • Digital submission of claims including doctor’s visits, diagnostic tests and medication
    • Easy management of outpatient benefits (monitoring consumption of eligible coverage amount, number of doctor’s visits and deductibles).

The combination of the PPOs, the agreed-upon pricing, and ETHNIKI's expertise and services ensures enduring relationships with its customers.

With the Impact Agenda, Manulife and IGP focus on sustainability: we are building a better business, to create a better world. We take pride in the fact that many of the IGP Network Partners share the same view and continue to receive industry recognition for their work.

In 2022, ETHNIKI won the Bronze prize in the "CR Index 2021-2022", awarded by the Corporate Responsibility Institute to businesses which continuously incorporate sustainable development into their business strategy. The CR Index is the first ESG (Environmental Social & Governance) Index in Greece that, starting in 2008, assesses a company’s performance in the areas of society, environment, employees, corporate governance, and the market, based on 100 international criteria that are now prerequisites for the most significant ESG indicators and standards.