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Insurance payments total exceeds €600 million for the first time in Estonia

Storm damage in Tallinn on Sunday, October 8.
Storm damage in Tallinn on Sunday, October 8. Source: Ken Mürk/ERR

In 2023, the total amount of insurance premiums for life and general or non-life insurance contracts signed in Estonia was €638 million. Compared to 2022, when the total amount of payments was €551 million, there was a growth of 16 percent.

At the same time, insurance claim payouts totaled €439 million, growing by 15 percent on year.

Non-life insurance collected €554 million last year, and life insurance collected €84 million, as reported by the Estonian Insurance Association.

According to Andres Piirsalu, a member of the association's board, the number of clients and insurance contracts has grown across several insurance services, and inflation has raised prices, which is why the total amount of insurance premiums has increased.

Piirsalu noted that the data does not allow for an assessment of the profitability of the insurance sector.

"Although compensated damages are the largest cost component in insurance, there are additional costs such as operational expenses. Insurance providers also purchase reinsurance, the impact of which on operational results can be either positive or negative, depending on the period. The economic results of insurance providers are also affected by the profit or loss from investment activities," Piirsalu explained.

In 2023, insurance companies collected the most in voluntary vehicle insurance premiums, amounting to €179 million. This was followed by motor third-party liability insurance with €125 million and personal property insurance with €99 million.

The share of insurance premiums in GDP was preliminarily estimated at 1.6 percent last year.

Piirsalu mentioned that the fastest growth in non-life insurance was seen in motor third-party liability insurance.

"The amount of motor third-party liability insurance premiums increased by 21 percent over the year. Employer's health insurance, offered by both life and non-life insurers, has been the fastest-growing insurance service in Estonia for years, and 2023 was no exception. The total amount of employer's health insurance premiums in life and non-life insurance grew by 30 percent to €19 million," Piirsalu said.

"For some insurance services, such as personal property insurance, the coverage rate is already very high, reaching nearly 75 percent for home insurance. For other insurance services, such as life and pension insurance, there is still room for development," Piirsalu noted.

Last year, Estonia collected €467 in insurance premiums per capita, including €406 in non-life insurance and €61 in life insurance.

The Estonian Insurance Association (EKsL) is a professional association that unites all insurance providers operating in Estonia. It develops insurance and loss prevention, analyzes, and publishes insurance statistics. EKsL also organizes the resolution of insurance disputes through the insurance conciliation body.

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Editor: Marcus Turovski

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