The strengthening employee benefits market

Updated June 2026 (original article: April 2023)

According to recent migration data by Eurostat, approximately 730,000 Greeks emigrated between 2010 and 2024, while more than 470,000 have since returned, reflecting a gradual shift from “brain drain” to “brain gain”. However, the retention of highly skilled professionals remains a key challenge for the Greek economy and employers alike.

Although the Greek Social Security system provides benefits for all risks that are insurable, it generally offers low levels of benefits and services.

Since social security does not provide any lump-sum indemnity coverage and death-in-service pensions can be quite low, a group life insurance contract with a basic term offering coverage of one to four times annual income generally forms the basis for every employee benefit plan in Greece. It is possible to add a rider for accidental death and dismemberment (AD&D) coverage.

Social security only pays a small amount of pension in the event of Permanent & Total Disability (PTD). Typically, a lump sum payment equal to the basic term life benefit is paid out in three installments over the course of three years.

In most cases, the Short-Term Disability (STD) benefit is equal to 80% percent of the gross salary (including the amount received from social security).

Major Medical plans remain the predominant employee health benefit solution in Greece, providing coverage for both inpatient and outpatient care. Private healthcare services continue to be highly valued by employees, driven by faster access to medical services, shorter waiting times, and perceived higher quality of care compared to the public healthcare system.

Medical inflation remains a key challenge for employers and insurers, placing increasing pressure on healthcare costs. In recent years, health insurance premiums have recorded notable increases, while global medical cost trends continue to remain elevated. As a result, cost-containment measures, including the use of Preferred Provider Organization (PPO) networks and negotiated provider agreements, play an increasingly important role in managing claims costs and supporting the long-term sustainability of employee benefits programs.

The projected medical trend rate for 2023 equals 7.5% in Greece (Source: Global Insurer Survey Report. MMB Health Trends 2023). The use of Preferred Providers Organizations (PPO) for In and Out of Hospital Benefits is an effective strategy to control claim expenses and deal with inflation and rising medical cost.

This is especially relevant in an environment where healthcare demand continues to grow, driven by demographic changes, advances in medical technology, and rising healthcare utilization.

The Greek pension system provides a generous income-independent first-pillar pension and a supplementary pension that is mandatory for employees. Since employer contributions became fully tax-deductible in 2014, companies now regularly offer their employees the option to voluntarily participate in a supplementary third-pillar pension system. Defined Contribution (DC) plans prevail.

The insurance sector has undergone significant transformation in recent years, both globally and in Greece. Market consolidation has accelerated through mergers and acquisitions, while insurers have adapted their strategies to changing consumer behavior, inflationary pressures, geopolitical developments, climate-related risks, and evolving regulatory requirements.

At the same time, the Greek insurance market continues to demonstrate steady growth. In 2024, gross written premiums accounted for 2.5% of Greece's GDP, up from 2.4% in 2023, reflecting a stronger increase in insurance activity than in overall economic output.

Against this backdrop, Ethniki Insurance is well positioned to capitalize on emerging opportunities. Since joining Piraeus, one of Greece's largest and most dynamic financial institutions, the company has further strengthened its ability to support customers through innovative solutions, extensive distribution capabilities, and long-term financial stability.