Cost of insurance in Cyprus on the rise  

November 21, 2019 at 9:52am
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The per capita insurance premium paid by a Cypriot in 2018 was over €1,000, according to the recently-released Annual Report 2018 of the Insurance Association of Cyprus.

Specifically, €440 went to health insurance and €605 to general insurance and this marks the highest per capita amount paid since 2008.

As for the average premium paid by a Cypriot last year, this was €1,045 and is the highest since 2010 when it was €1,022. For life insurance, the average premium in 2018 was €440 marking a significant increase from 2017 when it was €409 and €381 in 2016.

Retrospective data shows that the lowest average insurance cost stood at €875 in 2014. And that the insurance industry’s investment in the economy in relation to GDP is steadily going up.

The industry’s investment in the economy in 2018 stood at €2.54 billion compared to €2.52 billion and was the highest since 2010 when it had reached €2.65 billion. The industry’s investment in the economy in 2014 was €1.84 billion.

As a percentage of GDP, the industry’s investment accounted for 12.5% ​​in 2018 and 12.9% in 2017. The insurance industry’s lowest annual GDP Gross Domestic Product was recorded in 2011 when it went down to 9.6%. And the highest one was in 2009 with 13.7% of GDP.

The data also shows that the amount of premiums paid for deaths in 2018 was €45.74 million and concerned 714 contracts.

The highest premium, €21.45 million, was paid by Universal Life, the second highest – 6.82 million – by Eurolife, followed by CNP Cyprialife’s €5.96 million and Allianz’s €4.01 million.

A total of 2,388 contracts matured in 2018 and the total amount paid by insurance companies was €37.98 million. Universal Life paid the highest amount which was €13.04 million for 754 matured contracts. CNP Cyprialife had 866 matured contracts with their overall amount standing at €9.70 million.

Metlife paid €8.93m at the maturity of 347 contracts and Eurolife €4.26m for 294 matured ones. Contracts redeemed before their maturity in 2018 stood at 10,189 and the amount paid was €104 million.

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