Axco Insurance Information Services Ltd has released its new country report dealing with life and healthcare for Cyprus. The report highlights that as a consequence of the economic crisis, the Cypriote insurance market is still suffering.
Premiums in the life market (excluding personal accident and healthcare) fell by 10.67% in 2013. Equally, the bail out of Cyprus's two main banks agreed on 25 March 2013 had a significant effect on their insurance interests. The closure of Laiki Bank and its absorption into Bank of Cyprus resulted in Laiki’s 49% stake in the largest life insurer, CNP Cyprialife, also being transferred to Bank of Cyprus. As Bank of Cyprus was already the 100% owner of EuroLife, then the second largest life insurer, this has created a considerable concentration of the market, as well as a conflict of interest and disputes with the French insurance group CNP which is the majority shareholder of CNP Cyprialife.
Other disruption comes as the licence of Liberty Life to underwrite life assurance business was withdrawn in 2013 and its portfolio is in run-off. The company is now licensed to write only accident and healthcare insurance. Minerva has also ceased to write life business, but is still active in non-life classes.
Tim Yeates, Business Development Director at Axco comments on the region: ‘Cyprus in undoubtedly still struggling in the shadow of the economic crisis. Potential good news comes with the development of a comprehensive national health system which was made a condition of the EU bail out. This was a target for 2015, but recent reports have suggested that it is more likely to happen in 2016. Indeed, as a direct consequence of the failings of the current subsidised public health system, where waiting lists are long and fees were increased for most consultations and hospital visits in August 2013, private medical insurance has experienced an increase in demand, even during the economic crisis.”
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