Legal Perspectives & Emerging Trends in Insurance (Law)

In the current socio-economic and regulatory environment, the insurance sector in Greece is undergoing significant legal, technological and market shifts. This article examines three major insurance areas: (a) compulsory motor vehicle insurance, (b) insurance connected to public works and construction projects and (c) broader legal trends and evolving insurance market dynamics. Our aim is to provide a clear, professionally written analysis for clients and partners who face insurance-related risks and contractual obligations.

Legal Framework in Greece

Regulatory Environment

Insurance and re-insurance in Greece are governed by both national law and EU-derived regulations. For instance, Law 4364/2016 implemented key provisions of the Solvency II Directive into Greek law.
Motor vehicle third-party liability insurance is mandatory under Law 489/1976 (as codified and amended) for owners or keepers of vehicles circulating on Greek roads. Moreover, the general contract law for insurance in Greece is reflected in Law 2496/1997 (Insurance Contracts), which regulates the relationship between insurer and insured. Insurance companies are supervised by the Bank of Greece (Τράπεζα Ελλάδος) for the non-life & life insurance market.

Insurance Contracts – Terms & Preconditions

The insured must receive the insurance policy, including General and Special Terms, and the contract must clearly define rights and obligations of both parties. For example, motor insurance policy terms in Greece set out the insured vehicle, scope of cover, exclusions, deductible, etc. If the insured fails to fulfil certain obligations (e.g., immediate notification of claim, providing correct information), the insurer may resist or reduce compensation. Recent case-law in Greece highlights that “excessive negligence” of the driver may lead to reduced or denied cover.

Focus on Key Insurance Segments

1. Motor Vehicle Insurance

Motor insurance in Greece remains a central area of mandatory cover. Under the Law 489/1976 (and amendments) any owner/keeper of a vehicle circulating on public roads is obliged to maintain third-party liability insurance.

Key practical points:

• The minimum cover must include at least civil liability to third parties (injury / death / property damage).

• Additional cover (comprehensive, fire & theft, natural disaster cover) may be taken voluntarily.

• For claims: third parties may pursue the insurer directly under certain conditions in Greece.
  Legal / contractual risks to be aware of:

• If the insured fails to notify the insurer promptly (often within a defined short period) the insurer may reduce or deny liability.

• If the vehicle was used outside the declared purpose, the driver lacked licence, or was under excessive influence/alcohol, cover may be void.

• Under-insurance or over-insurance issues: If the insured vehicle value is declared incorrectly the contract may be void or reduced.

For clients, it is essential to verify that the insurance policy meets statutory minimums, that the contract wording (in terms of territory, driver, vehicle usage) matches actual usage, and that the notification and claims procedures are properly observed.

2. Insurance for Public Works, Construction & Projects

In contracts for public works (construction of infrastructure, public buildings) insurance plays a dual role: risk allocation and compliance with procurement/contract law obligations.
Typical coverages include:

• Contractors’ all-risks / works insurance (covering damage to the works, materials, site equipment)

• Public liability insurance (third-party damage, injury)

• Professional/contractual liability (for design/construction defects)

• Delay in start-up / loss of profit (in large projects)

• Environmental liability insurance (as construction increasingly implicates environmental risks)

3. Insurance for Cybersecurity & IT Risks

In our increasingly digital environment, businesses across all sectors—including automotive, construction and public-works—face significant cyber and IT risks: data breaches, ransomware attacks, network intrusions, business interruption and regulatory penalties.

• The Greek cyber-insurance market is on a strong growth trajectory, with growth rates of about 25 % forecast in the coming years.

• Even so, many Greek organisations lag in cybersecurity readiness: for example, only about 52 % of businesses had adopted three or more cybersecurity measures in a recent study.

• Legally and contractually important factors include: clear definitions of what constitutes a “cyber‐incident” in the policy; coverage of regulatory fines (e.g., under General Data Protection Regulation) and business interruption; alignment of IT-risk exposure with policy terms; timely incident-notification and compliance with policy conditions.

• For clients involved in public works or large-scale projects, special attention should be given to the cyber risks associated with connected infrastructure (IoT devices, digital control systems), subcontractors’ IT exposures, and supply-chain cyber-liabilities. The insurance programme must align with both contractual obligations and the digital-risk profile of the project.

• Recommended legal strategy: perform a “cyber-insurance audit” at the contract-planning stage, review existing policies for adequacy and exclusions, ensure that cyber‐risk and insurance obligations (for you and subcontractors) are clearly drafted into project agreements, and monitor ongoing regulatory developments in cybersecurity law.

4. Life & Medical Insurance

Life and health insurance cover important personal and business risks—such as death, disability, serious illness, hospitalisation or outpatient treatment. Under Greek law, these products fall within a distinct regulatory framework: insurers must be authorised for life business, and contracts must respect the protections afforded to policy-holders.

• Ensure the policy clearly defines what is insured (e.g., death, disability, critical illness), who the beneficiaries are, any sub-limits, exclusions or co-payments.

• Disclosure obligations apply: non-disclosure of relevant medical information may lead to reduction or denial of the benefit.

• Recent legal/tax change: as from 1 January 2025 children under 18 are exempt from the 15 % Insurance Premium Tax on health plans in Greece.

• For corporate or group schemes, it is essential that the insurance aligns with the employment/benefit contract and relevant local regulation.

Emerging Trends & Legal Developments

Market Trends in the Greek Insurance Industry

• The Greek insurance market (life and non-life) is projected to grow at a moderate pace (CAGR ~ 4-5 %) in coming years.

• Motor insurance market: New products based on telematics, usage-based insurance (UBI) and data-driven underwriting are gaining traction globally and begin to influence Greece.

• For construction/works insurance: With larger infrastructure programmes (EU funding, green transition), risk profiles change (cyber risk in construction, supply-chain volatility, environmental risk) — thus insurers are adapting pricing and policy terms accordingly.

Recent Legal / Regulatory Developments

• Under recent amendments, Greek law now mandates that motor vehicle liability insurance must include certain risks of natural disasters (forest fire, flood) for vehicles registered in Greece.

• The enhancement of consumer protection in insurance contracts: more stringent disclosure obligations, clearer policy wording, rights of cancellation/withdrawal (cool-off periods) are coming into sharper focus.

• The digitalisation of insurance operations (underwriting, claims handling) brings new challenges for legal compliance (data protection, digital signature, remote contracting).

• In the public-works domain, procurement law developments (e.g., higher focus on sustainability, ESG criteria) are influencing insurance requirements (e.g., demand for environmental liability, business interruption cover).

Challenges & Recommendations

Key Challenges

• Increased frequency and severity of natural catastrophes (wildfires, floods) raise premiums and lead to potentially more restrictive policy terms.

• For motor insurance: pricing pressure (competition, regulatory caps) may lead to narrower cover or higher deductibles—insureds may end up under-protected.

• For construction/works: increasing complexity of projects (green infrastructure, digitalisation, modular construction) increases risk exposures (design defects, supply chain, systemic risk).

• Contractual mis-alignment: often the insurance included in contracts is insufficient, or the insured does not realise the extent of exclusions or indemnity obligations.

Professional Recommendations

• Conduct a full “insurance audit” before entering major contracts: alignment of contractual insurance clauses, policy wording and actual exposures.

• Ensure that policy wording is clear, consistent and addresses the actual use/operation (for motor: driver scope, territory, usage; for works: scope of works, subcontractors, delay cover, latent defects period).

• Verify insurer credentials and financial strength: ensure the insurer is authorised to operate in Greece and under the relevant class of business.

• Maintain a proactive claims-management strategy: early notification, document preservation, compliance with policy conditions. Delay or failure to notify can lead to denial.

• Monitor emerging risks: e.g., cyber risk in construction, climate-change related liability, usage-based motor insurance – and ensure insurance programmes evolve accordingly.

• Provide client training: particularly for non-insurance professionals (contractors, project owners) so they understand key insurance concepts (deductible, excess, exclusions, territorial limits, claims notification) and prevent unintentional gap exposure.

Συμπέρασμα

The role of legal advisory in the field of insurance is more critical than ever. With evolving regulatory requirements, technological transformation and shifting risk profiles, insureds and contractors must adopt a holistic approach to insurance risk-management. The Tsamichas Law Firm, with its expertise in insurance law stands ready to assist clients at every stage: from drafting and negotiating insurance clauses, reviewing and tailoring policy wording, to handling claims and disputes with insurers.

We invite you to contact our firm for tailored legal support on any matter relating to insurance coverage, contract design, claims strategy or regulatory compliance.