Estonian insurers wrote gross premiums worth EUR 344.8 million in 1H 2024, by 8.16% more y-o-y. At the same time, paid claims increased by 5.46%, to EUR 207.72 million. The market portfolio’s structure remained largely unchanged, with only very small alterations of some LoBs’ weight.

Life insurance saw a 2.5% increase in GWP, to EUR 42 million, while the non-life segment recorded an almost 9% GWP growth, to EUR 302.86 million. Motor insurance lines continued to hold the largest part of the non-life portfolio (48%). Property insurance LoBs account for a 22% share, but in 1H 2024 saw a slightly negative dynamic, with GWP decreasing by 0.5%, to EUR 76 million.

It is worth noting though that as far as the claim expenses are concerned, while on the life insurance side they decreased by 27%, on the non-life side they went up, on average, by about 15.7%.

Insurers compensated MTPL insurance losses in the amount of EUR 42 million, which is 13% more y-o-y. According to the statistics of the Estonian Traffic Fund (LKF), the number of MTPL insurance claims increased by 3%, reaching 17,000 cases. The Fund emphasized that the average amount of damage due to a traffic accident increased by 6% and is now EUR 2,328, a historic record in the Estonian traffic insurance. According to LKF board member Andres Piirsalu, the reasons for the increase in loss amounts are inflation and high traffic frequency, due to which the number of traffic accidents rises despite the economic recession. The average premium amount also increased from EUR 143 in 1H2023 to EUR 154 in 1H2024, the Fund added in its statement.

According to the recently approved amendments to the Road Insurance Law, the maximum compensation amount for a road accident increased to EUR 6.45 million from July 15. The insured amount related to personal injury will increase to EUR 6.45 million per insured event from EUR 5.6 million, while the insured amount for property damage, i.e. vehicles and other property, will increase to EUR 1.3 million per insured event from EUR 1.2 million.

From December 1, a compulsory road insurance contract must be concluded for all motor-driven land vehicles with a design speed exceeding 25 km/h or a design speed exceeding 14 km/h and weight of more than 25 kg, regardless of whether they are registered or not.

Among the Lobs with a smaller share in the market portfolio, health insurance saw the highest dynamic, GWP increasing by 26%, to almost EUR 10 million. According to the Estonian Insurance Association (EKsL), the number of companies that purchased employer's health insurance to cover medical expenses of their employees increased by 11% in 1H - 1400 employers have insured 60,000 employees, which is the highest result since the launch of this insurance product in 2018. However, insurers seem less inclined to cover their own liability as employers, the number of contracts for this type of coverage has remained unchanged for the last seven years.

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