Authorization granted of the last days of December 2020 enabled the company starting operations, the Group report for January 2021 reads. Signing of home insurance contracts began on a small scale to test the information systems and processes. According to the report, the company signed insurance contracts with only 24 customers, for GWP totaling EUR 4,000. Development activities are continuing, to start servicing LHV Bank customers from April. According to the original plan announced by the Group, in the span of its first twelve months of activity, LHV Kindlustus will start offering, besides home insurance and extended warranty insurance in Euronics' stores, a larger range of insurances, covering most of all non-life insurance product range on the market.
"Preparations for launching the non-life insurance undertaking and entering the market with products suitable for customers have gone according to plan. Relying on the existing customers of LHV Pank and Euronics, our goal is to quickly start offering a clear alternative on a market largely occupied by foreign capital. LHV is going to bring a similar change to the insurance market as it has to banking," said Jaanus Seppa, CEO of LHV Kindlustus.
The management team of LHV Kindlustus includes: Jaanus SEPPA, CEO; Tarmo KOLL, Member of the Board. The Members of Supervisory Board of the the company include Madis TOOMSALU (Chairman), Erki KILU, Jaan KOPPEL and Veiko POOLGAS.
In December, the group started advertising for "purchase insurance", a relatively unknown type of insurance among Estonians. The purchase insurance policy does not need to be added or activated separately, as it is automatically included in the features of several bank cards. At LHV, purchase insurance is automatically included with the Youth Card, as well as the Gold and Platinum bank cards. To this end, there is no need to enter into a separate contract or even pay a monthly fee, as you simply have to pay for the purchases with the relevant card.
The cover offered by the "purchase insurance" applies to new durable goods with a purchase price between EUR 100 and EUR 5,000. Durable goods are generally considered to be objects with a normal useful life of more than three months, such as electronics, furniture or even clothes. It does not matter the goods are purchased online or from a physical shop. If they were paid for with a bank card that includes purchase insurance, the goods are protected against various unforeseen destruction and theft for a period of 180 days from the moment of purchase. As every other type of insurance, the purchase insurance has certain restrictions and requirements. Therefore, the purchase insurance does not cover, for example, items purchased second-hand or already damaged, motor vehicles and related accessories and wear-and-tear components, as well as animals or foodstuffs.
LHV is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus and LHV Kindlustus. LHV employs over 520 people. LHV's banking services are used by 264,000 clients, and pension funds managed by LHV have 180,000 active clients. LHV's UK branch offers banking infrastructure to 140 international financial services companies, via which LHV's payment services reach clients around the world.
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