06/10/2003 12:06
Chairman of the Insurance Companies Association, Philios Zachariades told “StockWatch” on Monday that only 35% of the Cypriot households are insured against fire, earthquakes and tornados despite the low cost of insurance premiums in this sector.
Mr. Zachariades was invited to comment on the recent decision of the Council of Ministers, according to which “the government will cease allocating financial aid to persons and companies that are hit by disasters that could have been covered by insurance companies”.
Turnover of £27mln
The annual turnover of the insurance industry from the coverage against fire and other relevant hazards amounts to £27 million, which represents 21% of the total £125 million concerning the General Sector.
Mr. Zachariades estimates that the premiums in this sector will increase from 1.5 per thousand to 2 per thousand, while this increase was deemed necessary due to the international increase in reinsurance paid by the insurance companies, the flood in Nicosia on May 31 and the tornado that hit the island recently. “This increase is small compared to the protection offered”, Mr. Zachariades added. It is noted that the average insurance for a Cypriot household amounts to £150 per year.
Govt’s decisions to hit lower classes
Independent Consultant on insurance issues, Manolis Kyriakou said that the increase in premiums was expected. “There is an upward trend, which is attributable to the increase in the cost of the insurance companies”, he said, expressing his wariness on the recent Council of Ministers’ decision to offer conditional compensations for hazards. “This decision will hit the lower classes, which cannot afford an insurance coverage”.
“Compulsory insurance”
MFS Managing Director, Labros Christofi, noted that the Council’s decision to terminate the financial aid is important, but needs a legislative regulation, such as the compulsory insurance against hazards.
Mr. Zachariades was invited to comment on the recent decision of the Council of Ministers, according to which “the government will cease allocating financial aid to persons and companies that are hit by disasters that could have been covered by insurance companies”.
Turnover of £27mln
The annual turnover of the insurance industry from the coverage against fire and other relevant hazards amounts to £27 million, which represents 21% of the total £125 million concerning the General Sector.
Mr. Zachariades estimates that the premiums in this sector will increase from 1.5 per thousand to 2 per thousand, while this increase was deemed necessary due to the international increase in reinsurance paid by the insurance companies, the flood in Nicosia on May 31 and the tornado that hit the island recently. “This increase is small compared to the protection offered”, Mr. Zachariades added. It is noted that the average insurance for a Cypriot household amounts to £150 per year.
Govt’s decisions to hit lower classes
Independent Consultant on insurance issues, Manolis Kyriakou said that the increase in premiums was expected. “There is an upward trend, which is attributable to the increase in the cost of the insurance companies”, he said, expressing his wariness on the recent Council of Ministers’ decision to offer conditional compensations for hazards. “This decision will hit the lower classes, which cannot afford an insurance coverage”.
“Compulsory insurance”
MFS Managing Director, Labros Christofi, noted that the Council’s decision to terminate the financial aid is important, but needs a legislative regulation, such as the compulsory insurance against hazards.
Related Articles
