kathimerini.gr
Greece Seeks Public-Private Insurance Partnership for Disaster Management
Greece's Deputy Prime Minister proposes a new public-private partnership for disaster risk management, following recent government initiatives to incentivize insurance, in response to the high cost of the "Daniel" storm and low national insurance coverage compared to other European nations.
- What immediate actions is the Greek government taking to improve disaster response and reduce the financial burden of natural disasters?
- Greece's Deputy Prime Minister, Kostas Hatzidakis, advocated for a new framework for collaboration between the state, insurance companies, and citizens to better manage climate change and natural disaster impacts. This follows government initiatives like a 20% reduction in ENFIA (property tax) for insured homes and near-mandatory insurance for properties over €500,000 and businesses with over €500,000 turnover.
- How does Greece's current approach to disaster insurance compare to that of another European country, and what are the key differences in outcomes?
- The proposed framework aims to address Greece's underinsurance problem, highlighted by the €2 billion cost of the "Daniel" storm, with insurance companies contributing only €370 million. This contrasts with Spain, where a public-private partnership enabled €2.3 billion in payouts for 169,000 claims in 5 months following severe floods; a 78% insurance coverage rate compared to Greece's 18%.
- What are the systemic long-term challenges that must be addressed in Greece to improve the effectiveness and sustainability of disaster insurance and risk management?
- The Greek government's focus on incentivizing insurance through tax breaks and near-mandatory policies reflects a shift towards a more proactive approach to disaster management. The success of the Spanish model, which combines public and private efforts, suggests potential for similar improvements in Greece, with long-term benefits in risk reduction and financial stability. However, issues of affordability and the low national savings rate (5 days' wages vs. 8 months in OECD countries) remain significant challenges.
Cognitive Concepts
Framing Bias
The article frames the issue primarily from the perspective of the Greek government and the insurance industry, highlighting their proposed solutions and initiatives. The headline (if there was one, which is not provided), subheadings, and introduction likely emphasized the government's actions and the need for a public-private partnership, potentially downplaying the criticisms or limitations of these approaches. The positive framing of government actions could sway public opinion without presenting a full picture of the situation.
Language Bias
The language used is generally neutral and factual in reporting the statements made by officials and representatives. However, phrases such as "οξύ δημογραφικό" (acute demographic problem) and the description of the cost of "Daniel" as "στοίχισε στο κράτος" (cost the state) imply a negative financial impact. This choice of words could subtly shape the reader's perception.
Bias by Omission
The article focuses heavily on the Greek government's initiatives and the perspectives of government officials and insurance industry representatives. Other perspectives, such as those of citizens directly affected by natural disasters or environmental advocacy groups, are absent. The lack of diverse voices limits a comprehensive understanding of the challenges and potential solutions.
False Dichotomy
The article presents a somewhat simplified view of the problem, focusing primarily on the need for increased insurance coverage as the solution to managing the impacts of climate change and natural disasters. While increased insurance is undoubtedly important, other equally crucial aspects like preventative measures, infrastructure improvements, and climate change mitigation strategies are largely absent, creating a false dichotomy.
Sustainable Development Goals
The article discusses government initiatives to improve the management of climate change impacts and natural disasters in Greece. These include tax incentives for insured properties, near-mandatory insurance for high-value properties against natural disasters, and exploration of further incentives to increase insurance coverage. These measures aim to mitigate financial losses from climate-related events and encourage preparedness, thus contributing positively to climate action goals. The comparison with the Spanish model further highlights successful public-private partnerships in disaster response and insurance coverage, offering a potential model for Greece to emulate.