ERGO Insurance licensed to offer new type of insurance
The Financial Supervision Authority has issued an additional activity licence to the ERGO Kindlustuse AS insurer to provide auxiliary services insurance.
An auxiliary services insurance policy covers auxiliary services not covered by the primary insurance, such as travel insurance or motor own insurance. These include emergency services, transport of the insured to country of origin for medical reasons, legal advice in the case of an accident abroad etc.
Under the Insurance Activities Act, an insurer may be engaged only in types or subtypes of insurance for which they have an activity license issued by the Financial Supervision Authority.
There are currently eight non-life insurance companies with valid activity licences in Estonia and an additional four branches of foreign non-life insurance companies are registered with the Financial Supervision Authority. As of the end of December 2011, the market leader among non-life insurance companies in Estonia in terms of insurance premiums received is If P&C Insurance with 28% market share, followed by ERGO Kindlustus (18%) and Swedbank P&C Insurance (15%). The total market share held by branches of foreign insurers was 17% and the largest of them was the Estonian branch of Codan Forsikring A/S (7%).
By volume, the largest types of insurance in 2011 were motor own insurance (36% of all premiums received) and motor TPL insurance (28% of all premiums received).