ESTONIA: Insurance companies start recovering from recession

10 November 2011 —
The business of life insurance companies in Estonia has been gravely affected by the economic recession and ongoing financial crisis.

In comparison with 2008, life insurers collected about 20% less in insurance premiums last year. Insurance indemnities have also fallen, by about a third.

Imre Madison, CEO of Mandatum Life Insurance, says that one reason why life insurance business is stagnating is the financial crisis that has scared private investors.

Also Mandatum Life Insurance's business itself has suffered as the company's market share in insurance premiums has fallen from 30% in 2010 to 12% this year.

According to Madison, life insurance companies are now expecting their business to improve, partly thanks to launching employer pension funds and re-launching state contributions to the second pillar pension funds.

The largest player on the life insurance market in Estonia is Swedbank Life Insurance that has about 41% of the market.

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ESTONIA: Insurance companies start recovering from recession