Law 5193/2025 has introduced significant amendments to law 4364/2016 (the Solvency II Law), in connection with the liquidation of insurance undertakings in Greece.
The changes aim to improve efficiency, transparency, and regulatory supervision in the liquidation process. Key updates include stricter qualification standards for liquidators, the introduction of electronic auctions, and new procedures for dealing with failed asset sales.
Key Amendments at a glance:
1. Qualification criteria for liquidators
The supervisory authority is now empowered to define the qualifications required for insurance liquidators. These criteria will be set out in a forthcoming decision of the supervisory authority, to be published in the Government Gazette, providing clarity on the standards applicable to appointed liquidators.
2. Revision of liquidation expenses
The maximum allowable liquidation expenses which are determined in the decision initiating the process can now be revised by the supervisory authority. Liquidators seeking an adjustment must submit a formal request, supported by recommendations from relevant funds (the Auxiliary Fund of Law 489/1976, the Private Life Insurance Guarantee Fund of Law 3867/2010 or both).
Requests can only be submitted three years after previous approval.
3. Introduction of electronic auctions
In a notable procedural shift, electronic auctions will now be available for the sale of real estate assets during liquidation. The liquidator will decide in each case whether such an option will be utilised or whether the existing sealed bid system will apply.
4. Procedure for failed auctions
Aligning with the principles applied under the Code of Civil Procedure, new steps have been introduced to handle failed auctions. If no bids are received, the auction will be repeated with the same bid price on a date not later than six (6) months from the first auction date. If the auction fails a second time, a third attempt will follow within thirty (30) days from the second auction at a price reduced to 80% of the initial amount. Should the third auction fail as well, a fourth auction will be held at a bid price further reduced to 65% of the original bid, again in a time-period of thirty (30) days as of the last auction.
5. Direct sales
If all attempts fail, a direct sale can be initiated by the liquidator, subject to supervisory authority’s approval. In such cases, the supervisory authority may issue a decision specifying the terms, conditions and criteria that will govern the sale process.
6. Conclusion of insurance liquidation
The liquidation process will be considered concluded once the supervisory authority issues a formal decision. Upon issuance, the liquidator’s powers and duties automatically cease.
The above amendments came into effect on April 11th, 2025.
Why the above matters
For the insured public, liquidators and insurance companies these changes could entail a more structured, efficient, and regulated approach to liquidation. The introduction of electronic auctions and the clear process for failed auctions provides more flexibility, allowing blocked liquidation assets to quicker return to economic life.