Cyprus insurance market

The Cyprus insurance market reached EUR 1.41 billion in gross written premiums in 2025 (up 8.29% year-on-year). FY2024 GWP was approximately EUR 1.30 billion (+8.23%). The industry is one of the largest institutional investors in Cyprus.

The Insurance Companies Control Service (ICCS), a division of the Ministry of Finance headed by the Superintendent of Insurance. The ICCS supervises all licensed insurers, reinsurers and intermediaries under Law 38(I)/2016 (Solvency II) and Law 38(I)/2019 (IDD).

Motor third-party liability and employers' liability insurance are the primary compulsory classes. Professional indemnity insurance is mandatory for all licensed insurance intermediaries, and GESY-participating medical professionals must also hold compulsory professional indemnity cover.

Yes. EU/EEA insurers may operate in Cyprus under Freedom of Establishment (branch, section 158 of Law 38(I)/2016) or Freedom to Provide Services (no branch, section 161), after their home-state regulator notifies the Cyprus Superintendent of Insurance. Over 500 EU insurers are registered under the FOS route.

First, submit a written complaint to the insurer directly. If unsatisfied, escalate to the ICCS Superintendent of Insurance (+357 22 602 990). For financial disputes up to roughly €250,000, you may also approach the Financial Ombudsman within 12 months of the insurer's response, paying a €20 filing fee.

Not entirely. New composite insurance authorisations (life and non-life business under a single licence) are generally not permitted, and separate licences are normally required for life and non-life business. However, some long-established insurers, such as GRAWE Insurance Company (Cyprus) Ltd, continue to operate as composite insurers under earlier licensing arrangements.

Insurance agents (tied and independent) are the dominant channel (approx. 42%), followed by brokers (~25%), bancassurance (~20%), direct insurance (~10%), and a small but growing online/digital segment (~3%). Face-to-face distribution remains dominant.

The General Health System (GESY) is Cyprus's universal public healthcare scheme, launched in 2019-2020 and funded by compulsory contributions. Private health insurers now position themselves as supplementary to GESY, covering costs exceeding GESY tariffs, faster access, private rooms, and treatments not covered by the public scheme.

Class 7 schemes are second-pillar occupational pension products managed by life insurance companies, introduced in Cyprus in 2016. They resemble provident funds but offer broader benefits and tax-deductible employer contributions, making them an increasingly popular pension savings alternative.

Over 30 insurance undertakings are licensed and supervised by the ICCS. The 29 Insurance Association of Cyprus member companies account for approximately 98% of total annual gross written premiums. Additionally, over 500 EU insurers are registered to provide services under freedom of services.

The July 2025 wildfires near Malia destroyed or damaged over 700 buildings. Insurers paid roughly €20 million in claims, but many owners disputed compensation as too low, revealing that many properties were insured against outdated valuations, prompting calls to update coverage.