ESTONIA: the employer's health insurance has more than doubled in 1H

16 September 2022 —
The Association of Estonian Insurance Companies (EKsL) and Turu-uuringute AS conducted a survey, according to which 46% of the population would like to join the employer's additional health insurance, mostly 31-40 year old people and non-Estonians, at the same time a quarter of the population has never heard of such insurance, EKsL said.

According to the Association, in the first half of this year, 1,470 employers purchased voluntary health insurance, insuring a total of 46,260 employees (vs 510 and 20,400 accordingly last year). Thus, the employer's health insurance has more than doubled in a year.

"Nearly a tenth of all the employees have this health insurance in addition to the national health insurance. The demand for it keeps growing and it has become an integral part of the employee welfare package among employers recruiting top specialists", said Andres PIIRSALU, a board member of EKsL.

In 1H2022, the employer's health insurance reached EUR 10.5 million, while in the same period last year it was only EUR 4.2 million. Paid claims totaled EUR 6 million during the period.

"Employers are exempt of the tax if the insurance premium does not exceed 400 euros per employee per year. Above this limit, a special discount tax applies. Considering the price increase, the limit of tax exemption is outdated, it would be reasonable to increase it. Since the employer's health insurance reduces the pressure on the Health Insurance Fund's budget, it would not only benefit employees and employers, but also the state budget", PIIRSALU added.

1003 people aged 18-64 responded to the online questionnaire of the survey "Insurance and attitudes towards insurance services" completed in March this year.