Ethniki Asfalistiki Rescinds Health Policy Change after Outcry

Sharp reactions by the government, the Bank of Greece (BoG) and primarily by policy-holders has led to an “about face” by the Ethniki Asfalistiki insurance company, one of the largest if not the largest in the country.

The company, once a subsidiary of National Bank of Greece (NBG) and currently in the process of attracting a new buyer, had recently issued a circular to its agents announcing unilateral changes in the way it will compensate tens of thousands of beneficiaries in four of its biggest and long-standing health and life insurance programs, the so-called “legacy policies”. One of the more criticized changes held that beneficiaries had to first pay for certain healthcare costs out-of-pocket before being subsequently reimbursed.

In a statement on Monday, the insurance company said it rescinding the circular.

Ethniki Asfalistiki reported losses of 82.9 million euros in 2023 in its health and life insurance sector, with losses dropping to 9.73 million euros last year, despite life and health coverage contracts valued at 620 million euros – up 17% yoy.

Sharp criticism in Greece of late has focused on attempts by insurance companies to create disincentives in order to force policyholders to convert their life and health insurance policies – estimated to total 275,000 in the country – into annually renewable policies.

In a statement, the company maintained that “taking into account the concerns expressed recently, we have decided to suspend implementation of this new model, while also awaiting a new health index from the national statistical office (EL.STAT)”.