The Greek and Portuguese surety markets are in the midst of major changes, spurred by regulatory changes, advances in technology, and changing economic environments. These developments are redefining how companies and public institutions manage risk and financial guarantees.

Greece: Adopting Insurance-Based Surety Solutions

Traditionally, Greek companies have depended largely on bank guarantees. In recent times, though, there has been a significant move towards insurance-based surety bonds. This change was triggered by legislative reforms, particularly the amendment of Article 15 of Law 4412/2016, which enabled public sector organizations to accept insurance company guarantees.

NAK Katsiberis, in cooperation with INTERAMERICAN (subsidiary of the ACHMEA Group), was the first to introduce surety bonds into Greece in 2017. Their initiative has not only developed the market but also impacted institutional adoption of insurance-backed guarantees. The benefits of these bonds are the lack of collateral requirements, variable durations, and cost-saving, which makes them a competitive option for businesses looking for liquidity and risk management.

In spite of all these advancements, the Greek surety industry is still at its development stages. Insurance-based surety bond adoption is on the rise, but banks still control the industry. Ongoing education and consciousness are necessary in order to fully incorporate these products into the general financial system.

Market Segmentation

By Bond Type

·       Contract Surety Bond

·       Commercial Security Bond

·       Fidelity Surety Bond

·       Court Surety Bond

By End User

·       Individuals

·       Enterprises

Key Players

·       Atradius NV

·       Zurich Insurance Group AG

·       COFACE SA

·       Allianz SE

·       Chubb Ltd

·       Generali Group

·       Mapfre SA

·       AZUAGA SEGUROS

·       CESCE

·       Groupama Group

Geography

·       Greece

·       Portgal

Portugal: Blending Technology and Regulation into Surety Practices

Portugal's insurance market is distinguished by a strong regulatory system and an active strategy towards technologicalization. The Insurance Distribution Directive (IDD) has been successfully transposed into domestic law, establishing an orderly environment for insurance intermediaries.

The Portuguese market has experienced a boom in insurtech innovations, with insurers applying artificial intelligence and telematics to drive underwriting, pricing, and claims settlements. Such initiatives as Portugal Finlab encourage cooperation between regulators and innovators, paving the way for the introduction of technology-driven financial products.

In the surety business, insurers such as Allianz Trade provide a wide range of bonds, including advance payment, performance, and maintenance bonds. These solutions are available across different industries, offering financial protection and compliance guarantee. The use of digital platforms simplifies the application and issuance process, making it more accessible to businesses.

In addition, Portugal's emphasis on sustainability and risk management can be seen through its practice of insurance. The sector is consistently integrating environmental, social, and governance (ESG) factors into investment choices, consistent with the broader EU goals for a green economy.

Conclusion

The Greek and Portuguese surety markets are changing, each driven by distinct regulatory, technological, and economic influences. Greece is slowly adopting insurance-based surety bonds in place of traditional bank guarantees, while Portugal is combining sophisticated technologies and regulatory structures to improve its insurance products.

For companies working in these nations, knowledge of the intricacies of each marketplace is essential. In Greece, the increasing use of insurance-backed guarantees offers fresh opportunities for financial flexibility. In Portugal, digitalization and sustainability provide a cutting-edge approach to risk management.

As both markets continue to develop, stakeholders will need to remain informed and flexible, using the changing landscape to maximize their financial strategies and remain compliant in a more complex economic landscape.