Although it represents a relatively small insurance market, Greece is widely considered one of the most hazard-exposed countries in Europe. Its unique combination of high seismic activity, increasingly frequent weather-related events, and relatively low insurance penetration provides important lessons for insurers, regulators, and policymakers across the continent.
Unlike many European markets, where climate-related perils are the primary concern, Greek insurers have traditionally managed a broad spectrum of natural catastrophe risks. Greece faces the highest seismic risk in Europe due to its location at the convergence of major tectonic plates. As a result, earthquake risk has historically been a key driver of underwriting decisions, catastrophe modelling practices, and reinsurance strategies across the Greek insurance market.
At the same time, climate change appears to be contributing to an increase in the frequency and severity of weather-related catastrophes. Severe floods, prolonged heatwaves, wildfires, hailstorms and windstorms have become increasingly common over the past decade. Events such as Storm Daniel in 2023, one of the most destructive flood events ever recorded in Greece, highlighted that climate-related catastrophes may generate losses comparable to those associated with major earthquake events in affected regions. This was further illustrated by the severe wildfires that affected areas near Athens and other parts of Greece during t ise summer of 2026, underscoring the growing materiality of wildfire risk within the country’s natural catastrophe profile.
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