There is quiet pressure on the insurance market to increase prices

January 1, 20153 min reading

This fresh overview from IIZI Kindlustusmaakler reveals that even though prices on the insurance market in Estonia are, for the most part, stable, motor third party liability insurance prices could be set to rise. Increases in travel insurance prices due to incidents of terrorism are also foreseeable. At the same time, Estonians have begun to insure their household property in greater numbers.

iStock_000084090749_Full (väike)

The increase in motor third party liability insurance prices can be avoided by comparing offers from insurance providers after each insurance period. This is confirmed by statistics from insurance brokers—when it is possible to compare offers, people conclude motor third party liability insurance transactions in at least the same price range as before. The situation with travel insurance is more complicated, with price increases coming directly from the complicated situation internationally.

According to Moonika Kaste, Product Manager for IIZI Travel and Accident Insurance, insurance companies have, in connection with the increasing frequency of terrorist acts, begun reviewing and amending the terms and conditions of travel insurance. According to her, the sets of rules are still in the process of being developed and therefore different companies may offer products that are very different, but which come with significant restrictions.

“When purchasing travel insurance with terrorism coverage we therefore recommend that you direct your attention to insurance cover involving travel interruption, baggage and medical assistance, and also review the insurance territory and recoverable amounts. When it comes to insurance it always pays to consult with an insurance specialist, to make sure that the insurance takes into consideration your travel plans and includes the necessary insurance cover,” added Kaste.

In the market overview, IIZI also notes that the volumes of household property insured by people have increased. “The increase in volume is not exponentially large at the moment, although there could be several reasons behind it. Also showing signs of an increase are the average premium payments per policy,” said Kaido Kepp, Head of the Partnership Department at IIZI. According to him, the increased rate of insuring household property is related to the fact that people are more aware of which objects or items can be insured and are making their selections more carefully than before.

He added that in comparison with other developed markets, household insurance in Estonia has ample room to grown in terms of volume.

The overview is available in full here:

Insurance is iizi!

IIZI Kindlustusmaakler AS is an Estonian capital based insurance intermediary undertaking and is also one of the first Internet based insurance service providers. Today we provide quality brokerage service to small as well as large clients through personal solutions and our Internet based self-service environment. IIZI Kindlustusmaakler AS has been operating on the market since 2000, and as the biggest broker today we hold a 31% market share in Estonia. Internationally IIZI is represented on the Latvian and Finnish markets. IIZI Group AS offers employment to more than 150 people.