Estonia has a highly concentrated and competitive insurance industry,
although in volume terms it is very small and lags significantly behind
other European member states. The Estonian insurance industry
declined by 4.4% in 2011 over the previous year due to a significant
decrease in life insurance business, caused primarily by a slowdown in
demand for investment-related insurance products. The non-life segment,
however, remained relatively stable in 2011. Direct marketing is the key
distribution channel for life insurance products, while brokers are the
prime channel for non-life products.
Estonia’s small economy registered negative growth in 2008 and 2009 due to the global financial crisis. Consequently, the Estonian insurance industry also recorded negative growth in 2008. However, the economy posted strong growth of 3.4% in 2010 and 11.7% in 2011, and is projected to record over 6% annual growth over the forecast period. This is expected to have a positive influence on the insurance industry.
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Demand for unit-linked products fell significantly in 2011
Demand for unit-linked life insurance products fell by 18.9% in 2011 over the previous year, resulting in an overall decline in life insurance premiums in 2011. Life insurance also declined by around 9% in the first half of 2012 compared to the same period the previous year, led by declines in endowment and unit-linked products. A cautious approach towards investment activities in 2011 and the first half of 2012 led to a fall in demand for investment-related products such as unit-linked policies.
Share of land vehicle insurance declined due to falling vehicle sales
The share of land vehicle insurance (own damage insurance) in the non-life segment declined for three years from 2009. The decrease in 2009 was primarily due to a fall in vehicle sales, while in 2010 the decline was also propelled by reduced insurance tariffs, a trend which continued in 2011. However, the share of third-party motor liability insurance increased slightly in 2011, when insurers raised premiums in the second half of the year after incurring substantial losses in the first half.
Limited size of the Estonian insurance industry remains a key challenge
The surging economy propelled the growth of insurance industry during the review period, but the value of the overall domestic industry remains very low, limited by the small size of the economy. This discourages global insurers from entering Estonia. An increase in minimum capital requirements as part of Solvency II is also expected to have an adverse effect on smaller insurance companies.
Highly concentrated industry
The Estonian insurance industry is highly concentrated, with the top five life insurers representing 100% of the segment in terms of written premium in 2011. The leading five non-life companies accounted for 69% of their segment. The shares of the top two life insurers increased in 2011 over the previous year, while the share of the third-largest insurer, Mandatum, fell significantly by 11%. No significant fluctuations in the market shares of non-life companies were noted in 2011 with the exception of Codan, whose market share increased by 4%.
Table Of Contents
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Estonian Insurance Industry Overview
3.1 Insurance Industry
3.2 Key Industry Trends and Drivers
3.3 Challenges
3.4 Regulations
4 Life Insurance
4.1 Life Insurance Growth Prospects by Category
4.1.1 Individual life insurance
4.1.2 Individual general annuity insurance
4.1.3 Individual endowment insurance
4.1.4 Individual marriage and birth insurance
4.1.5 Individual term life insurance
4.1.6 Individual supplementary insurance
4.2 Life Insurance Growth Prospects by Product Type
4.2.1 Individual single-premium products
4.2.2 Individual non-single-premium products
5 Non-Life Insurance
5.1 Non-Life Insurance Growth Prospects by Category
5.2 Property Insurance
5.2.1 Fire and allied perils insurance
5.2.2 Engineering insurance
5.2.3 Agriculture insurance
5.2.4 Other property insurance
5.3 Motor Insurance
5.3.1 Motor hull insurance
5.3.2 Motor third-party insurance
5.4 General Third-Party Liability Insurance
5.5 Marine, Aviation and Transit Insurance
5.5.1 Marine insurance
5.5.2 Marine hull insurance
5.5.3 Marine third-party insurance
5.5.4 Transit insurance
6 Personal Accident and Health Insurance
6.1 Personal Accident and Health Insurance Growth Prospects by Category
6.1.1 Personal accident insurance
6.1.2 Travel insurance
6.1.3 Health insurance
6.1.4 Non-life health insurance
6.1.5 Life health insurance
7 Reinsurance
7.1 Reinsurance Market Size by Insurance Segment, 2008-2017
7.2 Reinsurance Segment Size by Type of Insurance, 2008-2017
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Estonia’s small economy registered negative growth in 2008 and 2009 due to the global financial crisis. Consequently, the Estonian insurance industry also recorded negative growth in 2008. However, the economy posted strong growth of 3.4% in 2010 and 11.7% in 2011, and is projected to record over 6% annual growth over the forecast period. This is expected to have a positive influence on the insurance industry.
Get a copy of this report @ http://www.rnrmarketresearch.com/the-insurance-industry-in-estonia-key-trends-and-opportunities-to-2017-market-report.html
Demand for unit-linked products fell significantly in 2011
Demand for unit-linked life insurance products fell by 18.9% in 2011 over the previous year, resulting in an overall decline in life insurance premiums in 2011. Life insurance also declined by around 9% in the first half of 2012 compared to the same period the previous year, led by declines in endowment and unit-linked products. A cautious approach towards investment activities in 2011 and the first half of 2012 led to a fall in demand for investment-related products such as unit-linked policies.
Share of land vehicle insurance declined due to falling vehicle sales
The share of land vehicle insurance (own damage insurance) in the non-life segment declined for three years from 2009. The decrease in 2009 was primarily due to a fall in vehicle sales, while in 2010 the decline was also propelled by reduced insurance tariffs, a trend which continued in 2011. However, the share of third-party motor liability insurance increased slightly in 2011, when insurers raised premiums in the second half of the year after incurring substantial losses in the first half.
Limited size of the Estonian insurance industry remains a key challenge
The surging economy propelled the growth of insurance industry during the review period, but the value of the overall domestic industry remains very low, limited by the small size of the economy. This discourages global insurers from entering Estonia. An increase in minimum capital requirements as part of Solvency II is also expected to have an adverse effect on smaller insurance companies.
Highly concentrated industry
The Estonian insurance industry is highly concentrated, with the top five life insurers representing 100% of the segment in terms of written premium in 2011. The leading five non-life companies accounted for 69% of their segment. The shares of the top two life insurers increased in 2011 over the previous year, while the share of the third-largest insurer, Mandatum, fell significantly by 11%. No significant fluctuations in the market shares of non-life companies were noted in 2011 with the exception of Codan, whose market share increased by 4%.
Table Of Contents
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Estonian Insurance Industry Overview
3.1 Insurance Industry
3.2 Key Industry Trends and Drivers
3.3 Challenges
3.4 Regulations
4 Life Insurance
4.1 Life Insurance Growth Prospects by Category
4.1.1 Individual life insurance
4.1.2 Individual general annuity insurance
4.1.3 Individual endowment insurance
4.1.4 Individual marriage and birth insurance
4.1.5 Individual term life insurance
4.1.6 Individual supplementary insurance
4.2 Life Insurance Growth Prospects by Product Type
4.2.1 Individual single-premium products
4.2.2 Individual non-single-premium products
5 Non-Life Insurance
5.1 Non-Life Insurance Growth Prospects by Category
5.2 Property Insurance
5.2.1 Fire and allied perils insurance
5.2.2 Engineering insurance
5.2.3 Agriculture insurance
5.2.4 Other property insurance
5.3 Motor Insurance
5.3.1 Motor hull insurance
5.3.2 Motor third-party insurance
5.4 General Third-Party Liability Insurance
5.5 Marine, Aviation and Transit Insurance
5.5.1 Marine insurance
5.5.2 Marine hull insurance
5.5.3 Marine third-party insurance
5.5.4 Transit insurance
6 Personal Accident and Health Insurance
6.1 Personal Accident and Health Insurance Growth Prospects by Category
6.1.1 Personal accident insurance
6.1.2 Travel insurance
6.1.3 Health insurance
6.1.4 Non-life health insurance
6.1.5 Life health insurance
7 Reinsurance
7.1 Reinsurance Market Size by Insurance Segment, 2008-2017
7.2 Reinsurance Segment Size by Type of Insurance, 2008-2017
Inquire for a discount on this report @ http://www.rnrmarketresearch.com/contacts/discount?rname=76364
