By Vangelis Dourakis

“Brake” in the signing of new insurance contracts on the islands of Santorini, Anafi and Amorgos, where seismic activity is in exacerbation, domestic companies are put on: are now refusing to sign new contractsfollowing the “model” of California while planning not to renew and old which expire. As market agents point out “Insurance cover random dangers and not … almost certain damage.”

But even these companies that will decide to accept insurance contracts for natural disasters in these islands, as they all show, will adjust them and increase the relevant costs.

Expanded islanders – are in danger of being left without compensation

This practice of insurance companies also puts obstacles to those who want to either ensure the discount of ENFIA 20% with expansion of natural disasters, whether they are obliged to conclude contracts for the protection of their property, as required by law, for real estate worth more than EUR 500,000 or their businesses.

In particular, compulsorynot literally but in substance, is now the insurance for real estate worth more than 500,000 euros: If those who have such do not cover natural disasters, in the event of natural phenomena that will cause damage simply they are not compensated by the state. The property worth less than 500,000 euros on the other hand are given incentives for their insurance, as they will have a discount of 20%.

“Privileges” or liabilities in which it is not possible to respond to the residents of Santorini, Amorgos and Anafi, since insurance companies refuse to either sign new contracts or expand/ renew older.

And this is also true for businesses since July 2025, as long as their turnover exceeds 500,000 euros are obliged to be insured for natural disastersas They will no longer be compensated by the state.

In essence, after this development – that is, the refusal of insurance to produce new contracts in these areas – there are not a few who remain exposed to the provisions of the laws, without being responsible for what is happening.

“California model” and for… Santorini, Amorgos, Anafi

Domestic insurance companies, is it obvious that against the backdrop of intense seismic activity on its islands? Santorini, Anafi and Amorgos, follow the “model” of California: there, many insurance companies they interrupted coverage in areas of California or They risen abruptly premiums after the fires of 2017 and 2018, which led to huge losses for the industry.

Companies have occasionally commented that they are concerned about major financial losses due to the increasing risk of more frequent and serious fires.

It is indicative that State Farm, one of the largest private insurance companies in California, had stated that canceled 72,000 contracts In the state, about 40% of which covered houses.

Many of these cancellations were made at high risk, luxurious neighborhoods in Los Angeles, including Pacific Palisades, an area affected by recent fires.

The Allstate stopped issuing new insurance contracts For businesses and personal property in California in 2023.