The message that "in 2026 we are laying the foundations for the banking and insurance of the future, with the aim of being a strategic ally of life, protection and security for our customers", is sent by the CEO of ERB Cyprus Insurance Holdings and member of the Executive Committee of Eurobank, Takis Phidia.
In an interview with InBusinessNews as part of the IN Business Forecasting 2026 series, Phidia analyses the plans and development strategy for both Eurobank and the insurance companies ERB Cyprialife and ERB Asfalistiki.
Specifically for Eurobank, he states - among other things - that "as the largest bank in the country, our goal for 2026 is to remain thefirst choice of bank, offering comprehensive banking and insurance services that meet the modern needs of the market and our international clients."
Regarding the insurance sector, Phidia notes that "our companies ERB Cyprialife and ERB Asfalistiki are moving forward on three main pillars: leveraging synergies through operational integration, innovation and digital transformation for simplified processes, and investment in human resources and the sales network."
"With the new brand positioning and the strengthening of the bancassurance channel, we aspire to offer products and services that combine reliability, know-how and a human approach," he further underlines.
How do you think the Cypriot economy will perform in the new year and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
The Cypriot economy, in 2026, is expected to remain on a strong growth trajectory, reaching 3.5% and is predicted to be another year with one of the highest rates among Eurozone countries.
Growth is estimated to be supported by high value-added sectors, such as technological and professional services, the tourism sector, while it will also be fueled by strong domestic demand.
Unemployment is forecast to decline to close to 4.2%, inflation to be close to 2.2%, while we expect that significant fiscal surpluses will be maintained.
Regarding public debt, we believe that it will continue its steady downward trend.
However, challenges remain, such as geopolitical uncertainty in the wider region and the risk of escalating trade tensions or "tariff wars" between major economies, which may affect tourist flows, energy prices and Cyprus's foreign trade.
Additionally, addressing the impacts of climate change on the Cypriot economy is expected to be a significant challenge for the state and the banking sector in the coming years.
As a banking sector, our priority is to finance investments that diversify the productive base and strengthen the country's resilience.
How do you anticipate that your company's sector of activity will develop in 2026, what are the biggest trends/changes you expect to occur and what are the most significant challenges?
I will answer you about the two main areas of activity of the Eurobank Group, banking and insurance.
The banking sector is expected to continue its positive course in 2026. Strong financial results and upgrades from international rating agencies confirm the steady improvement and reliability of the Cypriot financial system.
However, despite the positive prospects, in 2026 the global economy, and consequently the Cypriot economy, is anticipated to face a series of challenges, as I mentioned in the previous question.
In addition to these, important challenges, especially for the banking sector, are also the containment of the phenomenon of cyberattacks, digital transformation and technological development, new digital banks (neo banks) that create new conditions by intensifying competition, the green transition and compliance with ESG criteria for sustainable development, reducing the environmental footprint and ensuring transparency and integrity in corporate governance.
At the same time, banks must adapt quickly and comply with European requirements and regulations, ensuring that they continue to function as a pillar of economic and social development.
Regarding the insurance sector, it is undergoing a period of dynamic transformation. Dominant trends are the digitalisation of services and processes with the addition of AI agents, personalized service and the demand for combined life, health, property and savings plans.
Insurance will also be increasingly linked to broader social protection and sustainable development. At the same time, challenges related to competition, regulatory framework, claims costs and risk management and growing risks are intensifying.
These are challenges that require foresight, innovation and organisational - operational efficiency.
The recent legal and accounting - and within 2026 operational - consolidation of our companies that formed ERB CYPRIALIFE and ERB ASFALISTIKI, members of the EUROBANK Group, allows us to respond to this demanding reality with enhanced capabilities: technological, commercial and human.
Our goal is to offer high-quality and reliable insurance solutions, tailored to the changing needs of our customers.
A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?
The possibility of mergers and acquisitions always remains open across the entire spectrum of businesses.
In this field and in a rapidly changing business environment, 2025 was marked in Cyprus by intense mobility in the financial and insurance sectors, where the regulatory - legislative framework, with its provisions, forces companies to consider the prospect of acquisitions/mergers.
An additional reason in this direction is the fierce competition that requires the creation of 'critical operational metrics' to enable a company to face challenges, ensure its survival and grow.
The top development of the year was, by all accounts, the creation of Eurobank, as a result of the merger of Hellenic Bank and Eurobank Cyprus, and the acquisition of CNP Cyprus Insurance Holdings, which ultimately created the insurance companies ERB CYPRIALIFE & ERB ASFALISTIKI.
The two new leading companies in the life & health sector and the general sector, respectively, move with the strength and confidence of the Eurobank Group, bringing a new era to the field of insurance in Cyprus.
Overall, these events constitute a milestone not only for the banking and insurance sectors, but also for the economy more broadly.
With assets of over €28 billion, Eurobank is today the largest financial institution in Cyprus.
Our goal is to realise our vision for sustainable development, technological progress and to emerge as a people-centered bank that returns value to the local community.
What can we expect in terms of your organisation's development and expansion plans and strategy in 2026? What moves do you intend to make in this direction?
As the largest bank in the country, our goal for 2026 is to remain the bank of first choice, offering comprehensive banking and insurance services that meet the modern needs of the market and our international clients.
Our strategy focuses on creating a relationship of trust through simplifying processes and upgrading the service experience.
With the new brand positioning, we aspire to offer products and services that combine reliability, expertise and a human approach.
Digital transformation is a central pillar. We are investing in artificial intelligence, data analytics and automated systems, with the aim of optimizing efficiency and providing a personalized customer experience.
An important step in this direction is the establishment of the Agentic AI and Digital Technologies Center in Cyprus, in collaboration with LTI Mindtree and Fairfax Digital Services, which will accelerate the development of advanced solutions for the European financial sector.
At the same time, we are strengthening the international interconnection of markets and investments through partnerships with institutions such as the Indian-Greece-Cyprus Business Council and the Indian Chamber of Commerce, as well as initiatives such as the promotion of the UPI payment system in Europe.
In the insurance sector, our companies ERB CYPRIALIFE and ERB ASFALISTIKI are moving forward with three key pillars: leveraging synergies through operational integration, innovation and digital transformation for simplified processes, and investment in human resources and the sales network.
With the new brand positioning and the strengthening of the bancassurance channel, we aspire to offer products and services that combine reliability, expertise and a human approach.
In 2026, we are laying the foundations for the banking and insurance of the future, aiming to be a strategic ally of life, protection and security for our customers.
The new year is seeing the implementation of the tax reform, taking place 22 years after the previous tax reform. How do you estimate that it will affect the Cypriot economy, businesses, and the attraction of foreign investments?
The new tax reform is necessary to modernise the tax framework and adapt it to the current reality of the Cypriot economy. It is being called upon to respond to challenges such as the green and digital transition, demographic changes and new European and international rules, while maintaining the country's fiscal stability and competitiveness.
As a banking and insurance sector, we believe that it is moving in the right direction and we support efforts to improve and upgrade the system.
The central goal is a fairer, simpler and more predictable tax framework, which broadens the tax base and enhances transparency, limiting tax evasion and distortions.
A positive element is the provision for targeted tax benefits for households, taking into account the family structure, as well as the strengthening of incentives for "green" investments, such as energy upgrading and the use of renewable energy sources.
A stable and modern tax environment, aligned with international standards, improves Cyprus' attractiveness for foreign investment and gives businesses greater certainty for their long-term planning.
(Source: InBusinessNews)
