Insurances

The projected market size (gross written premium) of the Insurances market in Estonia is expected to reach US$1.14bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$767.90m in 2024.
The average spending per capita in the Insurances market amounts to US$861.20 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 1.43%, resulting in a market volume of US$1.22bn by 2029.
In terms of global comparison, the United States is expected to generate the highest gross written premium in 2024, amounting to US$3.8tn.
Estonia's insurance market is rapidly evolving, with a growing emphasis on digitalization and innovative offerings to cater to the tech-savvy population.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

Estonia, a country known for its digital innovation and progressive policies, has seen significant developments in its Insurances market.

Customer preferences: Customers in Estonia are increasingly valuing convenience and efficiency when it comes to insurance services. This has led to a rise in demand for digital insurance solutions that offer quick and easy access to policies, claims processing, and customer support. Additionally, there is a growing interest in personalized insurance products that cater to individual needs and lifestyles.

Trends in the market: One notable trend in the Estonian insurance market is the increasing popularity of usage-based insurance. This type of insurance, which calculates premiums based on individual behavior and risk factors, is gaining traction among tech-savvy consumers who are open to sharing data in exchange for more tailored and potentially lower-cost coverage. Another trend is the integration of Insurtech solutions, such as AI-driven underwriting and blockchain-based claims processing, which are streamlining operations and improving the overall customer experience.

Local special circumstances: Estonia's small population and high internet penetration rate have created a conducive environment for the growth of online insurance sales. The country's tech-savvy population is comfortable with digital transactions, making it easier for insurance companies to reach and engage with customers through online channels. Additionally, Estonia's favorable regulatory environment and support for digital innovation have encouraged both traditional insurers and Insurtech startups to invest in the market.

Underlying macroeconomic factors: The stable economic growth and rising disposable incomes in Estonia have contributed to an increase in insurance penetration rates. As individuals and businesses have more financial means, they are more willing to invest in insurance products to protect their assets and mitigate risks. Moreover, the country's focus on financial literacy and risk management has raised awareness about the importance of insurance, further driving market growth.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.