PZU's Estonian branch: Coronavirus related travel insurance claims growing fast

31 March 2020 — Daniela GHETU
Estonian PZU Kindlustus, part of the PZU Group, has already paid out some EUR 100,000 in travel insurance claims related to the coronavirus outbreak, the local press reports. The company representatives said the number of claims has lately exceeded 50 per day in several occasions.

According to The Baltic Times journal, travel insurance claims have tripled in recent weeks leading to significantly higher claims expenses on this line of business, a trend that is expected to continue for a while given that there are still many pending applications and new claims are filed every day. Most of the claims are related to travel cancellation issues, while medical treatment, liability insurance or lost and/or damaged baggage account for a very little share in the total. Company representatives have mentioned the situation of several customers that have difficulties returning home and need the insurers' assistance, especially because many foreign hotels have raised prices to a significantly higher level than usual for those who have not yet been able to return home.

PZU Kindlustus is the Estonian Branch of the Lithuanian insurance company AB Lietuvos draudimas, which is a part of the international PZU Group and uses the PZU trademark in Estonia. The company ranks among the biggest insurers in Estonia, both in GWP and paid claims terms. Lietuvos draudimas is the market leader on the Lithuanian market, with GWP worth EUR 203 million in 2019, accounting for an about 30% market share.