Insurance Litigation 2024 Comparisons

Statutory Regime

Insurance law consists of two key areas:

• contractual insurance law; and
• the rules regarding the supervision of insurance and reinsurance companies, as well as the distribution of their products.

The primary legislation governing contractual insurance law is Law 2496/1997, as supplemented by the general provisions of the Greek Civil Code, covering areas like contract formation, invalid contracts due to error, fraud or coercion, and the interruption of limitation periods, as well as Law 2251/1994 on consumer protection addressing unfair terms in insurance contracts and mechanisms for dispute resolution.

There is also special legislation governing specific areas such as marine and aviation insurance as well as compulsory insurance (eg, Law 489/1976 on motor vehicle third-party liability (MTPL) insurance).

When it comes to insurance companies’ supervision, Law 4364/2016 aligns Greek legislation with the EU’s Solvency II framework, being further supported by the European Commission’s regulations and decisions and the guidelines and decisions issued by the Bank of Greece (BoG), in its capacity as the competent authority, which usually follows European Insurance and Occupational Pensions Authority (EIOPA) Guidelines.

In terms of insurance product distribution, Law 4583/2018 implemented Directive (EU) 2016/97 on insurance distribution (IDD) into Greek law, as further supplemented by European Commission regulations, on distribution of insurance-based investment products, product oversight and governance and regulations on key information documents for insurance products.

Procedural Regime

Insurance disputes, such as claims involving insurance contracts, coverage disputes, and claims handling issues, are generally resolved in Greek civil courts.

Alternative Dispute Resolution (ADR) mechanisms like arbitration and mediation are available for resolving insurance disputes. Domestic arbitration is primarily governed by the Greek Code of Civil Procedure, while Law 5016/2023, adopting the UNCITRAL Model Law applies for international arbitration.

With respect to mediation, Law 4640/2019 has mandated an initial mediation session for civil and commercial disputes (including insurance claims) that fall under the jurisdiction of either multi-member courts of first instance or single-member courts of first instance, as long as the dispute’s value exceeds EUR30,000 in the latter case. Any lawsuits filed in violation of this requirement will be considered inadmissible.

There is no dedicated ombudsman for disputes between consumers and insurance companies. However, out-of-court settlements are facilitated by insurance intermediaries, experts, loss adjusters, and the Hellenic Consumers Ombudsman, which offers general consumer protection services, although it is not specifically focused on insurance-related issues.

Filing a Claim and Jurisdiction

Proceedings begin with the filing of a lawsuit, which must include the names and addresses of the parties (note that actions in rem are not permitted under Greek law), along with full details of the claim. The claimant is required to specify the exact amount being sought from the outset; a general range or a statement that the amount will be determined during the proceedings is not acceptable.

As far as Greek courts’ subject matter competence is concerned, a principal criterion for allocating disputes is the value of the contested claim, namely:

• single-member courts of first instance – handle claims up to EUR250,000; and
• multi-member courts of first instance – handle claims exceeding EUR250,000.

The determination of the value is exclusively based on the main claim (ancillary claims are not taken into account).

Subject matter competence of multi-member courts of first instance also extends to the overall spectre of civil disputes which may not be valued in money terms – ie, in cases where the validity and legality of insurance contracts term(s) and condition(s) is challenged (declaratory action).

There is no standardised claim form required for filing. The act of filing does not suspend the limitation period; the lawsuit must also be served on the defendant to prevent the time bar.

Service of Process

The lawsuit is served by a court bailiff hired by the claimant. If the defendant is based in Greece, service must occur within 30 days of filing. If the defendant is domiciled abroad or is of unknown residence, the service window is 60 days. Service for defendants in EU member states is done according to Regulation (EC) 1393/2007, while for non-EU defendants, the Hague Service Convention of 1965 applies.

Pre-Trial and Trial Process

Once the lawsuit is served, the key stages of the proceedings are as follows.

• Pleadings must be submitted within 90 or 120 days of the expiry of the deadline for the lawsuit’s service, depending on the case, with additional pleadings due within 15 days after this period. Once this deadline passes, the case file is closed. Claims arising after the expiration of the deadline for filing pleadings or proven in writing or by court affidavit of the opposing party, may be raised by adding them to the pleadings (supplementary pleadings) no later than 20 days before the scheduled court hearing.
• Within 15 days after the case file is closed, a judge is assigned, and a hearing is scheduled within 30 days. Witnesses are not examined during the hearing, and the case can proceed without the presence of the parties or their lawyers. Witnesses may later be called if the court deems it necessary after reviewing the case file.
• Judgments are typically issued within three to five months. In complex cases, the court may issue a preliminary judgment requesting additional evidence, such as expert testimony.

Appeal Process

Appeals can be made against any judgment without the need for permission. Appeals can be based on both factual or legal grounds and must be filed within 30 days of the judgment’s servicing (if the appellant is based in Greece), or within two years of the judgment’s publication, in the case that the judgment has not been served. If the appellant is domiciled abroad or is of unknown residence, the appeal must be filled within 60 days of the judgment’s servicing.

An application for annulment can be submitted to the Supreme Court, but only on questions of law. This application must also be filed within 30 days of the servicing of the Court of Appeal’s judgment (if the appellant is based in Greece), or within two years of the publication of the Court of Appeal’s judgment, in the case that the judgment has not been served. If the appellant is domiciled abroad or is of unknown residence, the application for annulment must be filed within 60 days of the judgment’s servicing.

General Rules on Limitation for Insurance Claims

As a general rule, claims arising out of an insurance contract are prescribed after the lapse of four years in the case of non-life insurance and five years in the case of personal insurance, starting from the end of the calendar year within which the claim arose. Third-party motor liability claims prescribe within five years of the date of the accident.

Although efforts are being made to promote ADR mechanisms, they are not widely adopted by disputing parties. Apart from marine insurance, resort to arbitration is rather limited. As already mentioned, while a mediation session is mandatory before filing a civil and commercial claim, including insurance claims, before the first instance courts, as per the relevant provisions of Law 4640/2019, the resolution of the disputes in the context of such mediation session is rare.

Insurance disputes across the European Union are governed by Brussels Ia Regulation (EU) 1215/2012. Under this Regulation, either insurers or the insured may be sued in the courts of the member state where they are domiciled/seated. If the insurer is not seated in any member state, it may be sued in the member state where it has other establishment (branch, agency, etc). Insureds may also sue insurers in the courts of the member state where the former are domiciled.

In case Regulation (EU) 1215/2012 is not applicable, the Greek Code of Civil Procedure provides that the sole criterion to be currently applied for the determination of the international jurisdiction of Greek courts depends on territorial competence. Under this criterion, all defendants, either insurers or insureds, having a domicile/seat in Greece, are primarily subject to the jurisdiction of Greek courts, whether Greeks or foreigners.

As far as choice of law is concerned, the Regulation (EU) 593/2008 (Rome 1) provides that, a cross-border contract shall be governed by the law chosen by the parties. To the extent that the insurance contract does not cover a “large risk” as defined therein, the parties may choose:

• the law of any member state where the risk is situated at the time of the conclusion of the contract; 
• the law of the country where the policyholder has their habitual residence;
• in the case of life insurance, the law of the member state of which the policyholder is a national;
• for insurance contracts covering risks limited to events occurring in one member state other than the member state where the risk is situated, the law of that member state; or
• where the policy holder of a contract falling under this paragraph pursues a commercial or industrial activity or a liberal profession and the insurance contract covers two or more risks which relate to those activities and are situated in different member states, the law of any of the member states concerned or the law of the country of habitual residence of the policy holder.

If the parties have not chosen an applicable law, the insurance contract shall be governed by the law of the country where the insurer has its habitual residence (in cases where the insurance contract covers a “large risk” as defined therein) or shall be governed by the law of the member state in which the risk is situated at the time of conclusion of the contract (in all other cases).

To the extent that the Regulation (EU) 593/2008 (Rome 1) is not applicable, insurance contracts are governed by Greek law, including the private international law rules provided by the Greek Civil Code.

Under the Greek Code of Civil Procedure, enforcement proceedings may be carried out only on the basis of an “executory title”. This term includes foreign judgments, declared as enforceable by competent Greek single-member courts of first instance, unless the ruling of the foreign judgment contradicts with fundamental principles of Greek legislation (public order) or Greek good morals. Hence, a foreign judgment, enforceable in foreign territory, may be declared enforceable in Greek territory and, thus, may be enforced by or against insurers within Greek jurisdiction. Such a declaration is followed by the local exequatur, granted by the same competent court.

However, the exequatur procedure has been abolished for the following cases:

• since 10 January 2015, under the “Brussels Ia” Regulation (EU) 1215/2012 for judgments rendered by the courts of the member states of the European Union, with regard to civil and commercial matters;
• since 12 December 2008, under the Regulation (EU) No 1896/2006 on the “European Order of Payment”; and
• since 21 January 2005, under the Council Regulation (EC) No 805/2004, on the “European Enforcement Order”.

In these cases, the judgments are automatically recognised across the EU and no separate recognition or exequatur procedure is required (in particular, only a shorter certificate issuance procedure is required).

Notwithstanding the above, the rule of declaration of enforcement of foreign judgments still applies under the Lugano Convention for third countries – ie, Switzerland, or under bilateral or multilateral international agreements with other countries (non-EU member states).

In principle, insurance disputes fall under the rules provided by the Greek Code of Civil Procedure for the so–called “regular procedure”. According to this procedure, the parties are obliged to submit pleadings and evidence within 90 or 120 days of the expiry of the deadline for the lawsuit’s service, depending on the case, with additional pleadings submitted and related evidence provided within 15 days after this period. When the hearing takes place, all pleadings have already been submitted and all evidence provided, and the parties or their lawyers usually have nothing further to add. Hence, the hearing may take place without the presence of the parties or their lawyers. Evidentiary proceedings, however, may be completed after the hearing of the case, as long as the court deems necessary to call witnesses for further examination or clarifications, or orders an inspection or an expert opinion.

The above rule does not apply to lawsuits concerning compensation for damage or injury, or death resulting from car accidents. These cases are brought before the single-member court of first instance regardless of the monetary value of the dispute’s object, and pleadings are submitted and evidence is provided during the first hearing.

In insurance disputes, in principle, the burden of proof lies with the plaintiff.

The general rule under Greek law is that almost all private law disputes are arbitrable. Only a few exemptions regarding labour disputes or disputes involving personal status apply. Hence, insurance and reinsurance contracts may include clauses according to which the parties are obliged to submit their dispute to an arbitral tribunal. In case such a dispute is brought before a court, the latter shall abstain from judgment and shall rule that the case should be submitted to an arbitral tribunal. Domestic arbitration is primarily governed by the Greek Code of Civil Procedure, while Law 5016/2023, adopting the UNCITRAL Model Law, applies for international arbitration.

Greece is party to the New York Convention. Under the Greek Code of Civil Procedure, the binding effects of a foreign arbitral award are automatically recognised as long as several conditions described therein (Article 903) are met. These conditions are considered to be more favourable in comparison to those introduced by the New York Convention. Enforcement of a foreign arbitral award is effected in Greece upon its declaration as enforceable by the Greek competent court of first instance. The foreign arbitral award may be executed after being vested with the local exequatur.

The use of arbitration for insurance dispute resolution is considerably rare in Greece, mainly because in practice, the parties usually choose not to include an arbitration clause in insurance contracts, with an exemption to marine insurance.

Domestic arbitration is private and is primarily governed by the Greek Code of Civil Procedure, while Law 5016/2023, adopting the UNCITRAL Model Law, applies for international arbitration.

Under Greek Code of Civil Procedure as well as under Law 5016/2023 the principal remedy for setting aside an arbitration award is the “action for annulment”. An additional remedy for declaring the non-existence of the award, covering some fundamental defects (ie, the non-existence of the arbitration agreement, the non-arbitrability of the dispute, etc), is provided only for domestic arbitration by the Greek Code of Civil Procedure and has a rather rare practical application. An action for annulment may be filed in three months’ time after the arbitration award has been served.

The Greek Courts of Appeal are competent for the annulment of an arbitration award which may be annulled for the grounds exhaustively described below:

• the arbitration agreement is null and void;
• the arbitration award has been pronounced at a time by which the arbitration agreement ceased to apply;
• the arbitrators who issued the arbitration award were appointed in violation of the arbitration agreement or of law, or were revoked by the parties, or finally disqualified;
• the arbitrators, while rendering the award, have exceeded the authority granted to them by the arbitration agreement or by the law;
• specific arbitration procedural rules provided under Greek Code of Civil Procedure (Article 886 paragraph 2, Article 891 & 892) have been violated (violation of principles of equality of the parties or of defence or of the rules governing the delivery of the award);
• the arbitration award contradicts with fundamental principles of Greek legislation (public order) or Greek good morals;
• the arbitration award is unintelligible or contains contradictory provisions; and
• the existence of grounds for the reopening of the decision as described in the Greek Code of Civil Procedure.

The actions for setting aside arbitral awards are very frequent in practice.

A review of the Court of Appeal’s decision in cassation is permissible, if such action is brought within three months after service of the decision. In such case, the hearing takes place before the Supreme Court (Areios Pagos).

In principle, the fundamental rule of freedom of contracts is applicable in Greece. However, Greek insurance law provides several rights to policyholders which, to the extent defined by law, cannot be limited by insurance contract terms.

Additionally, the fundamental rule of good faith as provided by the Greek Civil Code, as well as the principles of fairness and transparency as provided by the Greek Law 2251/1994 on consumer protection, should also be reflected in the drafting of an insurance contract.

Under Greek Law 2496/1997, the policyholder is obliged to release any information and declare any fact to the insurer that is objectively material for the assessment of the risk(s) the insurer might undertake under the insurance contract. For that purpose, the insurer, prior to the inception of the policy, may provide the policyholder with a questionnaire which the insurer should answer with sincerity. If it should prove that the policyholder gave wilfully untrue and misleading answers, the insurer, as soon as it has received the relevant notification, is entitled to unilaterally terminate the insurance contract within one month, while it reserves the right, (i) to dismiss any claim made by the insured even while the insurance contract was still in force, (ii) to seek compensation if the insurer incurs a loss due to the policyholder’s behaviour.

A notable challenge the industry faced was the adjustment of premiums for indefinite-term health insurance contracts, which has led to a considerable number of insurance disputes over the past year. Specifically, many policyholders have questioned the validity of the contract terms, arguing that the criteria for premium adjustments fail to meet the principles of fairness and transparency.

In Greece, if the disputing parties fail to reach a settlement, they give preference to court proceedings as regards the resolution of insurance coverage disputes. As far as ADR mechanisms are concerned, resolution of these disputes in the context of arbitration is rather limited and, in the context of mediation, extremely limited. The picture is not significantly different in respect of reinsurance contracts, although arbitration is more frequently adopted by the disputing parties.

Where the law views the insured party as consumer, the insured party, prior to any judicial action, may appeal to the Hellenic Consumers Ombudsman. The latter is an Independent Authority established by Law 3297/2004 and supervised by the Ministry of Development. It functions as an out-of-court body for consensual resolution of consumer disputes, although not specifically focused on insurance-related issues.

In general, insurance contracts in Greece may be enforced either by those who are parties to such contract or by those who are designated by the one party as “insured” under the insurance contract. Although the latter is considered a third party, it is, nevertheless, qualified to enforce it.

Further, where liability insurance is compulsory by law, Article 26 of Law 2496/1997 provides that any third party is entitled to bring a claim directly against the insurer up to the minimum amount of compulsory insurance – ie, in motor third-party liability cases.

The Greek Code of Civil Procedure (GCCP) also provides that any third party may bring a claim against the insurer on behalf of the policyholder, if the latter fails to bring their claim against the insurer.

The concept of good faith in contract law, rather than the concept of bad faith, is identified in several Greek law provisions. However, the bona fide fulfilment of performance as a fundamental clause is provided primarily under Article 288 of the Greek Civil Code. According to it, apart from the duties which the parties have specially provided for, other ancillary obligations may arise that shall be imposed by good faith during performance. By “good faith”, the Greek Civil Code means the sincerity and fairness required in transactions. Thus, an additional consideration of common usages is also provided under Article 288 of Greek Civil Code. A party that fails to fulfil its duties in good faith as described above is considered to have acted in bad faith and may be found by courts to be liable for breach of contract. Being a provision of compulsory law, Article 288 cannot be waived by the parties.

No penalties for late claims payment are imposed by legislation in Greece.

However, under Greek law, in case of late payment of claims, late interest is imposed. The rate for late interest may be provided by the insurance contract, otherwise the statutory late interest rate applies. In case of judicial proceedings, in addition to late interest, litigation interest is also payable. Litigation interest is an additional 2% rate on top of late interest calculated from the date the lawsuit was served on the defendant or an additional 3% on top of late interest calculated from the issuance of the competent court’s decision.

In Greece, a broker does not act on behalf of a policyholder when finalising an insurance contract; the policyholder provides the insurer all the requested information either directly or via an insurance broker, but the latter may be only authorised to forward this information or the application for an insurance contract signed by the policyholder to the insurer. The broker cannot be authorised to make representations or sign on behalf of the policyholder and, in general, the broker cannot bind the policyholder by their own juridical act.

Nevertheless, Article 2 paragraph 5 of Law 2496/1997 provides that in the event that the contents of the insurance policy differ from the contents of the application for insurance, the policyholder has the right to object in writing thereto within one month following the receipt of the insurance policy.

In Greece, insurance companies deal with underwriting or claims handling issues internally, through their competent departments. It is not common either to delegate underwriting or outsource claims handling to third parties.

Motor third-party liability claims are the primary type of claims in respect of which insurers fund the defence of insureds in Greece. On a smaller but significant scale, insurers also cover costs of defending claims arising from professional (eg, medical, managerial) malpractice, as well as product liability.

It is rather unlikely any changes will take place in the future regarding the coverage of costs incurred by the insureds.

In general, the cost of litigation in Greece remains considerably lower than the EU’s average cost of litigation. However, an increase in these costs has taken place since 2019, mainly due to mandatory mediation sessions in commercial cases (including insurance disputes, where applicable), as well as the extension of the court stamp duty to declaratory actions under Law 4640/2019. Further increases in litigation costs in the future cannot be excluded as, until now, legal fees have been remarkably low in Greece in comparison with the average EU legal fees.

In Greece, legal expenses coverage is usually included in insurance contracts, unless the parties agree otherwise. This may include judicial costs and legal fees, as well as judicial costs of the opposing party, in case the insured is the losing party in the dispute.

Greek law provides insurers with a right of action to recover sums from third parties causing an insured loss to an insured. This is the case when an insurer has already covered the insured’s claim under the insurance contract; to the extent such a claim is covered, this claim is automatically transferred by law from the insured to the insurer and the insurer is entitled to recover the respective sum paid from the responsible party. The transfer of such claim is not subject to the insurer’s or responsible party’s consent.

The insurer’s right of action for recovery as described above is provided by article 14 para. 1 of Law 2496/1997 on insurance contracts. The insurer is, by operation of law, subrogated to all substantive and procedural rights of the policyholder against a third party which is liable against it; therefore, the claim is filed by the insurer in its own name. In such case, the insured is subrogated by the insurer and, the responsible party shall hold against the insurer the same rights and obligations as held against the insured in the first place.

Several factors, including the COVID-19 pandemic, the war in Europe, and economic challenges, have influenced the volume and type of litigation in Greece, particularly in the insurance sector.

COVID-19 Pandemic

The pandemic led to a surge in insurance claims, particularly in health, life and business interruption policies. Many claims were disputed due to exclusions and coverage limits, leading to litigation.

War in Europe (Ukraine Conflict)

The war has triggered disputes over delayed contracts and insurance claims in sectors like shipping, trade and construction. In the meantime, rising energy prices and material shortages have also increased litigation in these areas, particularly over coverage for unanticipated losses.

Economic Conditions

Ongoing economic instability has led to more cases involving loan defaults and bankruptcy, with insurance disputes tied to financial distress. There has been a rise in litigation over unfair terms in insurance contracts, especially with respect to health insurance.

Natural Disasters

In recent years, Greece has experienced several natural disasters, including Storm Daniel. The expertise of the domestic insurance industry played a vital role in effectively managing the aftermath of these events. Specifically, insurance companies responded swiftly to Storm Daniel, processing claims that surpassed EUR300 million. Reinsurance acted as an essential risk mitigation tool, covering more than 75% of those claims. However, disputes have emerged regarding the interpretation of clauses, such as force majeure and exclusion of natural disasters from coverage.

In the next 12 months, several trends could influence litigation and insurance-related disputes in Greece, with both stabilising and new factors potentially driving change.

Economic Recovery and Inflation

If Greece’s economy continues to recover post-pandemic, there may be a slowdown in debt-related litigation as businesses and individuals regain financial stability. However, persistent inflation and rising energy costs may lead to further disputes over insurance claims tied to business interruption, supply chain disruptions, and operational losses.

Wars

The prolonged conflict in Ukraine, along with the ongoing war in Middle East, could continue to affect sectors like shipping, construction and energy. If the wars escalate or cause further economic instability, there may be an increase in insurance-related claims tied to property damage, trade disruptions or sanctions compliance.

Natural Disasters

As extreme weather events become more frequent due to climate change, a rise in claims related to property damage from incidents like wildfires, floods and earthquakes is expected.

Factors like COVID-19 and the war in Ukraine have led to significant coverage issues in Greece. During the pandemic, disputes arose over business interruption claims, especially in industries like tourism and hospitality, challenging whether policies covered losses due to government lockdowns. The war in Ukraine raised concerns around trade disruption and energy risks, pushing insurers to adjust terms for coverage related to geopolitical instability. These events have prompted both legal reforms and heightened scrutiny of policy language in Greece. The war in Ukraine has also impacted marine insurance, particularly with legal disputes over disrupted shipping routes in the Black Sea and war-risk exclusions. Although major rulings on war-related cases have not been issued, these events have prompted policy adjustments and heightened scrutiny of coverage terms.

The onset of the COVID-19 pandemic has had a profound impact on the realm of insurance agreements. One of the most notable changes in policy language has been the implementation of pandemic-related exclusions.

Moreover, the dual challenges posed by the COVID-19 pandemic and the geopolitical tensions resulting from the Russia-Ukraine conflict have shifted perspectives on cyber risks. Because of these events, there is a growing awareness in Europe regarding the technological transformations affecting daily life and business operations, such as remote working and the rise of e-commerce. This shift has heightened sensitivity to technology-related risks, particularly the increasing threat of cyber-attacks.

Additionally, the escalation of natural disasters has greatly influenced the insurance landscape, leading regulators to require businesses to secure coverage for such occurrences. This trend has spurred insurers to develop new products tailored to these risks, including parametric insurance solutions that offer innovative ways to address the challenges posed by climate change and other unforeseen events.

ESG considerations have gained significant importance for businesses including insurance companies, impacting everything from product development to investment strategies and brand positioning. Insurers face tough decisions about covering carbon-intensive businesses, especially as climate change increases natural catastrophe risks and the number of ESG-related litigation claims begins to grow. Underwriters are on the front lines, adjusting pricing and risk assessments for physical climate impacts and monitoring potential liability claims. They also begin to integrate ESG criteria into risk assessments, particularly in areas like environmental liability and corporate governance, affecting industries with high environmental risks such as shipping and energy.

However, research shows that, to date, relatively few insurers have embedded ESG into their underwriting, with less than half incorporating ESG scores and fewer offering incentives for sustainable practices. Insurers must adopt standardised, automated approaches using richer data and predictive models to improve risk evaluation and dynamic pricing. This transformation is part of a broader shift toward automating underwriting, personalising products, and modernising outdated systems, driven by the urgent need to address ESG risks and opportunities.

In Greece, the New Climate Greek Law (4936/2022) and the Corporate Sustainability Reporting Directive (CSRD) mandate timely consideration and action by management. The New Climate Greek Law aims to transition the country toward climate neutrality by 2050. Under this law, all insurance companies in Greece were required to submit a Carbon Footprint Report for the year 2022 by 31 October 2023. The CSRD broadens the range of companies required to provide mandatory non-financial disclosures. Companies must report on up to 113 non-financial key performance indicators (KPIs) and additional qualitative metrics, with publicly traded companies releasing their first sustainability reports within 2024.

To date, there has not been significant litigation arising from ESG in Greece. However, this situation is anticipated to evolve, as the implementation of EU-driven ESG disclosure regulations has resulted in investigations and legal actions in other regions of the EU.

Data protection laws, particularly the GDPR, are significantly impacting the underwriting and litigation of insurance risks in Greece. Insurers must ensure compliance with strict regulations regarding the collection and use of personal data, which can limit their ability to assess risks effectively. Failure to protect this data can result in significant penalties and increased litigation risks from both customers and regulatory authorities. Additionally, insurers are required to implement robust security measures and maintain transparency about data processing, affecting claims handling and procedures. Overall, data protection laws compel insurance companies to balance data-driven decision-making with strict adherence to privacy laws.

Greece has suffered vastly due to natural disasters in recent years. In this regard, new Law 5116/2024 has been enacted providing that large companies with annual gross revenues exceeding EUR2 million from the previous tax year must obtain insurance for specific natural disasters starting on 1 January 2025. The required coverage includes protection against forest fires, floods and earthquakes. Companies that fail to comply with this requirement risk incurring penalties, while those obligated to secure insurance will be ineligible for state aid for material damages to the insured assets caused by these disasters.

Artificial Intelligence (AI) is poised to be a significant catalyst for digital transformation across various sectors, including insurance. The growing adoption of AI systems throughout the insurance value chain presents both opportunities and risks that may influence insurance coverage and claims processes. In this context, the European Parliament and the European Council have enacted Regulation (EU) 2024/1689 (the “AI Act”), published in the EU Official Journal in July 2024. The AI Act complements existing regulations governing insurance in Europe, extending its reach to the use of new technologies like AI. As a result, the AI Act is expected to shape how insurers assess risks, manage claims and determine coverage, while ensuring that these practices align with regulatory standards.

The recent enactment of Law 5113/2024, implementing the (EU) Directive 2021/2118, has introduced significant interpretative challenges in insurance-related litigation. Specifically, its provisions regarding the Auxiliary Fund’s responsibility to compensate injured third parties conflict with existing legislation concerning the winding-up of insurance companies, likely leading to disputes. Additionally, while the amendment to the existing legislation on MTPL insurance aimed to align national law with the Directive, key issues remain unresolved, such as whether e-scooter owners or drivers are required to have MTPL insurance.