Hansa Varakindlustus receives operating permit
On 31 May, the Board of Financial Supervision Authority passed a resolution issuing an operating permit to AS Hansa Varakindlustus for the insurance of land-based vehicles, fire insurance and insurance against natural disasters, as well as for other classes of non-life insurance. In handling the application for the operating permit, the Financial Supervision Authority assessed the submitted documents and data from all points of view and weighted, within it competence, all relevant considerations. Since Hansabank is the market leader among banks, and Hansa Kindlustusmaakler, which belongs to the Hansabank Group, has significant market share on the brokerage market and because the current clients of Hansa Kindlustusmaakler can become clients of the new insurance company, the Financial Supervision Authority also asked the opinion of the Competition Board during the handling of the application.
"In its further activities, the Financial Supervision Authority considers it necessary to ensure that the loan and leasing clients of Hansabank would still have the right to enter into contracts with insurance providers other than Hansa Varakindlustus," emphasized Raul Malmstein, Chairman of the Financial Supervision Authority.
Payments to non-life insurance companies increased 14% in 2005. The market leader is AS If Eesti kindlustus (39% of the market), followed by ERGO Kindlustus (26%), Seesam Rahvusvaheline Kindlustus (17%) and Salva Kindlustus (12%). About two thirds of the non-life insurance market, more precisely 67%, was made up last year of voluntary motor insurance or casco and traffic insurance.
Brokerage companies play an important part on the Estonian non-life insurance market. Last year the share of brokerages in premiums collected by insurance companies was 34%, while Hansa Kindlustusmaakler has 21 pct of the market and is market leader. An insurance broker is a person who by law acts as an independent representative of the insured person and who selects the best insurance offer for the client.