Property insurers have been struggling to keep up with the dramatic fall in the prices of their property insurance policies.
A fall of as much as 10 per cent in insurance premiums in October was not enough to keep insurers afloat, and some analysts believe the insurers have lost out in the market.
The latest figures from Cyprus Insurance show the average premium has dropped to around €5,000, or around $6,000 in the capital.
The average price for a property insurance policy in Cyprus is now €7,000 or $8,500, according to the insurer’s latest report.
It says the fall in insurance prices is likely to continue.
“In the past few months, the decline in insurance rates has slowed, but we do expect a further decline in the coming months,” the Cyprus Insurance representative, Christos Tsiolis, told the Financial Post in an email.
“In this period, insurers have had to make up for lost market share in the country.”
The rise in insurance policies has not been the only reason for the decline.
The price of oil has also taken a major hit, according a report by Greek think tank Ipsos.
It said a large part of the fall was due to the fact that oil prices have declined by around 25 per cent this year compared to the same period last year.
According to the report, the rise in the price of petrol has contributed as well, but at a much slower rate.
However, analysts are not worried about the future of the industry.
“We have a lot of other factors that are driving the premium increase,” said the Cyprus insurance representative.
“We are seeing a huge decline in insurers, so that will only worsen the situation.”
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