The insurance industry is a key pillar of support for society and the economy of any place. Its contribution is undeniably multi-layered and substantial as every year it pays around 450 million euros in claims and employs more than five thousand people, contributing significantly to the GDP.
In Cyprus, the Insurance Sector constitutes 4% of the GDP with economic activities that extend beyond the payment of claims, to benefits for insured persons and investments, all of which which support growth.
At the same time, it is a pioneering industry in the sense that the Insurance Sector is one that, in its very nature, must always be one step ahead and have the appropriate mechanisms to absorb shocks that may "shake-up" individuals, businesses and the economy in general.
Although insurance awareness in Cyprus has been on the rise in recent years, it remains below the European average since it is limited to around 1,000 euros per year per person. It is mainly for this reason that, in the context of its contribution to society and the economy, the insurance industry must intensify its efforts to strengthen the public's insurance perception and awareness through specific actions, that at their core should have the promotion of the real value of insurance .
In this effort, the state itself should help by considering, among other things, the increase of incentives.
For us, here at Trust, the greatest responsibility and contribution of the insurance sector to society is the feeling of security of the citizen, no matter what.
This footprint, of citizen's sense of security, is multifaceted and important. The insurance market has repeatedly proven that it stands by the insured with ever greater reliability by emphasizing innovation, more simplified procedures, excellent services but above all, the friendly and human touch.
Through the constant contribution of our industry to society, we have managed year after year to increase the feeling of security, a good act much needed for a better quality of life.
2023 was a landmark year for the insurance industry, which based on the results of 9 months, recorded a 9% increase in premiums, maintaining the growth trajectory its currently on, despite the adverse socio-economic environment formed by covid and post-covid, as a result of inflationary pressures caused by the war in Ukraine but also the uncertainty caused by the heated events in the Middle East. Such growth rates show that, beyond adjusting for inflation, the Insurance Industry manages to grow, thus proving its resilience as well as its outlook.
Given that the forecasts for 2024 are auspicious for the Cypriot economy, with a projected growth of 2.6%, it is extremely difficult for the Insurance sector not to follow a similar course. Therefore, the Insurance Industry will continue to grow, perhaps at lower rates than in 2023, but the important thing is that the growth rates are greater than the corresponding GDP, which shows that the Insurance Industry in Cyprus is moving alongside and on the same levels of developed countries of Europe.
But it must be emphasized that, in such a lively and constantly evolving field, challenges are an integral part of the daily life of this particular sector. New automated underwriting processes, the introduction of AI in processes that even include claims settlement, constantly changing regulations and regulatory frameworks, IFRS 17, adoption of even more ESG criteria, the integration of online work and communications while cyber security is now a major threat, are just some of the issues that need an effective response within the next year. Challenges that TRUST declares it is ready to face thanks to its solid foundations, but also its "always think ahead...always be prepared" culture. Quick adaptability and a customer centric approach is Trust's brightest beacon.
Trust is already moving into a digital future by further strengthening its infrastructure. For us, digital strategy is an important part of our ongoing development. After all, every challenge is also an opportunity.
In any case, the catalytic role of the state and the competent supervisory authority should not be underestimated in order to ensure that the regulatory framework is respected and that the business field is distributed on equal terms.
Article in digital form, collector's edition of Phileleftheros "CYPRUS IN 2024! YEAR OF CHALLENGES" available free on philenews.com
