27/07/2007 11:01
The Insurance Companies Association of Cyprus demands more involvement of the insurance companies in the deliberations for the viability of the Social Securities Fund. In her interview to StockWatch, General Manager of the Association, Stefi Drakou stated that the state must introduce a wider legislative framework, which will encourage private insurance. “The state must give incentives to encourage the saving of additional money of that given for pensions. This framework must also strengthen transparency and the supervision of the investments that the insurance companies make. Today, they reach £1.13 billion”, Mrs. Drakou said.
In 2006, the total turnover of the insurance sector stood at £363 million and reached 4.3% of GDP. The life sector grew by 4% and the general sector by 9%.
Mrs. Drakou believes that health and pension sectors will grow more in the future.
The improvement of the sizes in the sector and the open borders after the island’s accession in the EU pave the way for the inflow of additional foreign investments and mergers. “It is likely to see mergers since the aim is to create even bigger units”, she noted.
Mrs. Drakou also referred to the harmonizing draft laws on insurance sector, with special emphasis on the EU directive Solvency II, which will boost solvency with the launch of a common insurance legislative framework. She also stressed the need for a settlement of the interest rate of the court decisions, which currently stands at 9%, double than that of the market.
In 2006, the total turnover of the insurance sector stood at £363 million and reached 4.3% of GDP. The life sector grew by 4% and the general sector by 9%.
Mrs. Drakou believes that health and pension sectors will grow more in the future.
The improvement of the sizes in the sector and the open borders after the island’s accession in the EU pave the way for the inflow of additional foreign investments and mergers. “It is likely to see mergers since the aim is to create even bigger units”, she noted.
Mrs. Drakou also referred to the harmonizing draft laws on insurance sector, with special emphasis on the EU directive Solvency II, which will boost solvency with the launch of a common insurance legislative framework. She also stressed the need for a settlement of the interest rate of the court decisions, which currently stands at 9%, double than that of the market.
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