Demand for Property Insurance Rises During Pandemic / Article

Insurance markets are similar in the Baltic States as many insurance companies operate in all three countries and offer similar products and services to their customers. The head of the Association of Insurers, Jānis Abāšins, said the biggest differences are in the area of ​​health insurance.

“Health care has been poorly funded by the state for many years, so we have relatively well developed health insurance. [system], which has only started to develop in Lithuania and Estonia in recent years. Insurance as an industry is unique in that it works with virtually all industries. Therefore, as insurers, we do not depend solely on tourism or air transport.

“As a result, some business went down, but at the same time another increased because there was a demand for products that did not exist before. Let’s say, more specific travel insurance for Covid-19, more specific health insurance “, explained Abāšins.

Uldis Dzintars, a member of the board of directors of the “Balta” insurance company, said health insurance increased by 8% in the eight months of this year.

“But in health insurance, the changes are less important than in travel insurance. Customers pay a higher price. But if we look at the rewards, they have doubled this year and now almost one in ten cases is refunded – Covid-19 coverage due to trip cancellation, ”Dzintars said.

He said that overall, non-life insurance grew only 2.6% this year, less than a year earlier. But during the pandemic, the number of people insuring their property increased by 11.9%.

“People are doing various home improvement jobs this year because they work from home and understand the value of their property. The Covid-19 crisis has helped people better understand the risks we face and proactively try to eliminate the effects of the risks, so this is certainly a very positive trend. If before we were more careless than the peoples of Western Europe, then we are getting there now, ”said the representative of Balta.

Last week an international conference on insurance in the Baltic was held. He also discussed the challenges for the future of the sector. Abāšins, head of the Association of Latvian Insurers, said the industry will think much more about sustainability and “green” investments in the future.

“The life insurer must show his client that these funds are ‘green’. Estonians have coal-like refractory stone for them. Gradually, this firestone must be replaced by something greener. We are lucky in this regard, we are already quite green in extracting electricity with our HES. But there is certainly something to think about. The financial sector – both banks and insurers – will be one of the European instruments through which this process of sustainability and green thinking will certainly take place, ”said Abāšins.

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