Estonia Insurance Report Q2 2016
BMI View: We hold a positive outlook for the Estonian insurance industry as a whole. The insuranceindustry in Estonia is characterised by a small but fairly rapidly evolving market, marked by increasingcompetition and the domination of motor vehicle and property insurance lines. In the vastly more importantnon-life segment, the economic recovery and initiatives by the insurers themselves should underpin highsingle-digit growth in premiums in most sub-sectors in 2016. In the main category, the motor vehicleinsurance line, volumes are set to grow, driven by growing incomes and expansion of the national vehiclefleet. We are now expecting double-digit annual growth rates for motor vehicle insurance. In the lifesegment, a campaign to educate households and companies, led by the major multi-national companies thatare present in Estonia, should ensure that premiums will rise quite quickly from a low base over the mediumto long term.
Key Updates And Forecasts
We expect life premiums to jump by 3.7% in EUR terms to reach EUR92.5mn in 2016.
Non-life premiums will grow at a faster rate, jumping by 11.8% in EUR terms and 8.8% in US dollarterms in 2016. We forecast total non-life premiums underwritten in 2016 will reach EUR469mn,translating into USD502mn.
The motor vehicle insurance line will be the clear outperformer in 2016. Growing by an estimated 14.2%in local currency terms, we forecast premiums to reach EUR280mn. In US dollar terms, growth willamount to an estimated 11.1%, with premiums topping USD299mn.
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