The hidden cost of fires: how Greece is losing millions and illusions of protection

[In Time]

Fires in Greece they cause damage not only to nature, but also to the economy: compensation to fire victims in one summer exceeded 8.8 million euros. Despite the increase in the number of insured homes, “protection hole” remains huge – only 17% of buildings have insurance coverage.

Fires and the economy: when not only the forest burns

The summer fires in Greece once again showed how costly natural disasters are. According to the study Union of Insurance Companies of Greece (ΕΑΕΕ)the amount of compensation for damage caused in 2025 was 8.85 million euros. Total recorded 229 insured eventsof which 205 relate to real estate and 24 to cars.

Most affected residential buildings — they accounted for 61.5% of applications and 39% of all payments. In second place – solar panels (14.1%), followed by commercial (13.2%) and industrial facilities (6.8%), but it was enterprises that received almost a quarter of all compensation.

The greatest damage was recorded on days August 12–13when several large outbreaks broke out at once – in Patras, Kato-Achaia and Chios.

Five years of losses: a climate timeline

From 2021 to 2025, the total amount of payments for fires reached 113.3 million euros. The most catastrophic was 2023 – almost 49 million. The main regions with the most expensive consequences: Atika, Dodecanese, Magnesia And Patras. Despite a slight decrease in damage in 2025, experts warn that the growth trend continues.

Insurance is rare

According to ΕΑΕΕ, only 17% buildings in Greece they have insurance that includes natural risks. A year earlier this figure was 15%. At the same time, the number of policies with full protection is from earthquakes, fires and floods — increased from 52% to 65%.

The growth is due to the government stimulus – discount on EΝФΙΑ for insured owners. But, as the Union notes, “the defense gap remains huge“

A problem for all of Europe

No insurance – not just a Greek problem. According to Financial Timesover the past 42 years only 25% loss from natural disasters in EU were covered by insurance. At the same time, the frequency and cost of disasters are growing, threatening the sustainability of the European economy.

Chapter European Insurance and Pensions Authority warned: risks are becoming systemic, and insurance companies are bearing an increasing burden. In the United States, there is already a phenomenon of insurers leaving dangerous regions – companies simply refuse to insure houses located near forested areas. This is not yet the case in Greece, but experts including Kostas Synolakispredict rising insurance premiums and future financial turmoil.

“We have not yet experienced a disaster on the scale of Los Angeles,” says Synolakis. “But the heat, drought and fires are getting worse. It’s just a matter of time before the climate takes its toll.”

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