There has been much speculation as to whether insurers’ exposure to Greece should be cause for concern. Federico Faccio at rating agency Fitch gives his take on the risks for insurers and how they built up in the first place.
While much of the recent media attention has been concentrated on the exposures the banks have to Greece, insurers too have been pondering how severe their own exposures might be if the crisis in the country—and across the wider eurozone—should worsen.
But how did they get to this position in the first place?
“These exposures began to build back in the early 2000s, when the eurozone was created,” says Federico Faccio, a senior director in the insurance group at Fitch.
Fitch, Europe, Greece, Solvency II, Sovereign Debt, Eurozone