ESTONIA: Insurance penetration reached 1.5% of GDP last year

20 April 2023 —
The growth drivers of the Estonian insurance market last year were employer's health insurance and private property insurance, including home insurance.

"Motor insurance and voluntary vehicle insurance make up almost half of the non-life insurance market, but their share is gradually decreasing. And life insurance decreased due to an outflow of pension funds", said Mart Jesse, chairman of the board of the Association of Estonian Insurance Companies (EKsL).

According to Jesse, employer's health insurance is gaining popularity very quickly, as benefits are mostly small, but there are many insurance cases. He believes that the market growth will continue in the coming years, because consumers' trust in insurers is high, and risk mitigation through insurance has become an integral part of people's everyday life, as Jesse explained.

In 2022, the average insurance premium per capita was EUR 462, of which EUR 347 were for non-life insurance and EUR 59 - for life insurance. Insurance penetration reached 1.5% of GDP last year.

If compare the market results 30 years ago - last year the Estonian insurance market totaled EUR 551 million, and in 1992 it was EEK 63 million, or nearly EUR 4 million, which indicates great achievement.