Estonia: MTPL market closed 2021 on profit, after ten consecutive years of losses

14 February 2022 — Andrei Victor
According to LKF (the Estonian Traffic Insurance Fund), during 2021 the number of traffic accidents increased by a fifth, while the average traffic damage was EUR 1,960. Thus, last year occurred 35,900, of which 33,200 of them in Estonia and 2,700 cases were caused by Estonian vehicles abroad.

According to Andres PIIRSALU, Member of the Management Board of LKF, the number of accidents increased due to heavier traffic and harsh winters. "At the beginning of corona crisis, the frequency of traffic accidents decreased, but las year it was again comparable to the pre-crisis period".

"Due to the economic recovery, the number of vehicles in traffic increased. In addition, the snowy winter brought difficult weather conditions, and all these resulted in a large number of traffic events", explained PIIRSALU, adding that during December there were reported 3,890 traffic accidents, which is a record number for the last 10 years.

At the end of December 2021, there were 804,000 vehicles covered by MTPL insurance, 33,800 more vs. 2020. In 2021, the annual average MTPL premium was EUR 102, representing a decrease of 9% y-o-y.

Last year, the MTPL insurance market totaled EUR 84.2 million, representing a decrease of 5% y-o-y, informed LKF, while the profit of the MTPL insurance market was EUR 5.7 million: "Estonian MTPL insurance market became unprofitable at the end of 2011. It is remarkable that at the end of 2021, the local MTPL insurance segment will be profitable again", commented PIIRSALU.

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