More than 7 out of 10 members of the Greek Economists Group support the introduction in our country of compulsory home insurance against natural disasters (eg earthquakes, fires, floods). The February issue was triggered by the massive earthquake that hit Turkey and Syria at the beginning of the previous month, with tragic consequences in terms of human casualties and material destruction.

Given the high seismicity that also characterizes Greece, as well as the frequency with which catastrophic events such as fires and floods have occurred in recent years, the data presented by Evgenia Tsorgzi in the K issue of February 14 are impressive. which only 16% of all homes are insured. The same article indicates that compulsory building insurance is applied in France, Germany, Belgium, the Netherlands, Portugal, Spain and Romania.

A total of 26 Greek economists responded to the Group’s February question. Of these, 73% believe that home disaster insurance should be mandatory in our country, while 19% disagree. 8% of respondents stopped between two options.

In their comments, posted in their entirety on the website of the Center for Humanitarian Studies, members of the Hellenic Panel of Economists note, on the one hand, that without insurance, the cost of disaster damage falls entirely on the shoulders of taxpayers, even in cases where the affected buildings are located in a high-risk area. or manufactured in violation of the relevant safety and prevention specifications. In this direction, the insurance obligation may also lead to increased compliance with these specifications. On the other hand, it is indicated that the condition for the implementation of the obligation to real repayment is the provision of benefits, possibly fiscal ones, which will reduce the cost of insurance, especially given the current economic situation, but also the parallel adoption of strict rules for reinsurance of insurance companies and protecting them from possible bankruptcy in case of large losses, as well as to protect policyholders from “fine print” practices.

Also of interest is the opinion expressed by professor and member of the Group Nikos Economides, who distinguishes between fire insurance, which, in his opinion, should be mandatory, from earthquake and flood insurance, since, on the one hand, earthquake insurance is very expensive, and with on the other hand, in the case of especially large disasters, insurance companies may go bankrupt and not compensate for the damage.

* Mr. Giorgos Archondas is a member of the Scientific Council of the Center for Humanitarian Studies and the head of the Hellenic Group of Economists.

The Greek Economists Group is an initiative of the Center for Humanitarian Studies that aims to record and report on the views of leading Greek economists on critical economic policy issues. The panel is attended by 75 economists from 59 universities and institutions in 11 countries. For a detailed list of participants, their responses to monthly questions and explanatory comments, as well as answers to frequently asked questions about the Panel, please visit the Center for Humanitarian Studies website kefim.org.