Estonia Insurance Information

CIA link to demographic/economic data on Estonia

General Estonia Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Personal Liability insurance for notaries, auditors, bailiffs and patent attorneys;
  3. Aviation liability;
  4. Waste management companies are obligated to provide some form of financial security to cover damage caused by mishaps in the handling of hazardous waste.
  5. Workers’ Compensation.
• Non-Admitted Insurance:
  
• Policy Wordings & Rates / Tariffs Controlled:
  None.
• Policy Language:
  Estonian but English and Finnish used as well. No restrictions on language exist.
• Types of Insurance Restricted to Government Institutions:
  
• Policy Currency:
  Estonian kroon (EEK) but US$ and Euros are acceptable.
• Currency Restrictions / Exchange Controls:
  Kroon is freely convertible.
• Policy Period:
  Annual normal.
• Cancellation Provisions:
  30 days prior to renewal.
• Premium Taxes, etc. paid by Insured:
  None. The insurers pay a 8% levy to ETIF (guarantee fund).
• Insurance Companies:
  Insurers and reinsurers wanting to conduct business in Estonia must be licenses.
• Brokers:
  Brokers are becoming increasingly important with regard to non-life business. The larger industrial and commercial risks use brokers and represent a significant share of the market. The most common sales channel for non-life is through the company agents. Insurers also use gasoline stations, car dealers, travel agents, security companies, real estate agents and post offices.
• Brokerage Commissions:
  
• Broker of Record Letters:
  
• Reinsurance:
  There are no reinsurance companies in Estonia. As there is no state reinsurer there are no obligatory cessions.
• Local Natural Hazards:
  Earthquake is not a risk in Estonia. Windstorm and hail occur occasionally. Flooding is not considered to have a catastrophic effect and is not usually purchased.
• Other Information:
  There are no captives or risk retention groups in Estonia.

Property Insurance

• Fire:
  Coverage available generally follows international standards. Basic coverage is FLEXA and can be extended to cover water damage, burglary, windstorm, glass, and malicious damage.
• All Risk:
  All risk coverage also available.
• Coinsurance:
  Not usual.
• Blanket Insurance:
  
• Business Interruption:
  Available and follows international standards. One estimate suggests 20% - 25% of property insureds have BI coverage.
• Replacement Cost:
  
• Discount for fire protection equipment / systems:

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  

General / Public Liability

• Available Wordings:
  
• Comments:
  Products Liability is available in Estonia. Demand is low but increasing as a result of increasing exports to the EU, but the USA and Canada are generally excluded.

Automobile / Motor

• Compulsory Limits:
  The bodily injury limit per person is EEK 5.5mn and EEK 1.6mn for property damage. Basic MTPL is unlimited.
• Comments:
  The total motor insurance accounts for about 65% of the non-life income (2002). The statutory third party limits change annually and are being increased to eventually reach EU levels. There are three types of coverage:
  1. casco – this includes accidental damage, natural perils, fire and malicious damage
  2. supercasco – this includes accidental damage, natural perils, fire, malicious damage and theft
  3. additional coverage – this can be bought in addition to casco or supercasco and includes personal accident for driver and luggage (theft or damage), windscreen, vehicle recovery and additional expenses as a result of an insured injury.

Workers’ Compensation

• Comments:
  Worker’s Compensation is administered by the Government. Employer’s Liability is available but many companies choose to protect themselves by purchasing a group Personal Accident coverage.

Marine

• Available Wordings:
  

Marine

Hull and Cargo are very small markets. It is not compulsory to insure imports or exports locally.

Crime

• Available Coverages:
  Burglary is a problem in some parts of Estonia, particularly in urban areas.