The Estonia insurance market is a highly concentrated and competitive 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.
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
For more information on the Estonia insurance market, please click here: Estonia insurance market
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