Over the past few years, the Life insurance market in Estonia has been steadily growing and evolving, reflecting the changing needs and preferences of consumers in the country.
Customer preferences: Estonian consumers are increasingly seeking life insurance products that offer not only financial security but also investment opportunities. They are looking for policies that provide a combination of protection and potential for wealth accumulation, aligning with a global trend towards more holistic and flexible insurance solutions.
Trends in the market: One notable trend in the Estonian Life insurance market is the rising popularity of unit-linked insurance products. These policies allow policyholders to invest in a range of assets such as stocks and bonds, providing the potential for higher returns compared to traditional life insurance products. This trend mirrors the growing demand for investment-linked products seen in other European markets.
Local special circumstances: Estonia's relatively small population and competitive insurance market have driven insurers to innovate and tailor their products to meet the specific needs of local consumers. Insurers in Estonia are focusing on providing personalized and digitally accessible insurance solutions to cater to the tech-savvy population. Additionally, the country's strong digital infrastructure has facilitated the growth of online insurance sales, making it easier for insurers to reach a wider audience.
Underlying macroeconomic factors: The steady economic growth and increasing disposable income levels in Estonia have contributed to the positive development of the Life insurance market. As consumers become more financially literate and aware of the importance of long-term financial planning, the demand for life insurance products is expected to continue to rise. Moreover, the low-interest-rate environment in Europe has prompted consumers to seek alternative investment options, further driving the demand for unit-linked insurance products in Estonia.
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.
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