(In) Solvency II: Greek insurers face major capital raising to meet Solvency II requirements

Fears that Greece’s government could default on its debts has brought unwanted attention to the country’s financial sector. But its insurers are – relatively – sanguine about this scenario occurring, and it is the increased capital requirements of Solvency II that could bring the industry to its knees. Theodora Tsentas reports

With the recent focus on the problems facing Greece's financial sector, it is not surprising to find the country's insurance sector is also facing difficulties. The shutting down of five insurers in September 2009 by the Private Insurance Supervisory Committee (PISC), which at that point regulated the industry, brought the total to 14 in recent years, jeopardising the savings of an estimated 1.2 million policyholders.

In June this year, the junk status rating of Greek bonds devalued the industry