Estonia: the crisis is in banking, but not in the insurance sphere
Torbjörn Magnusson, chairman of Estonia’s largest insurer If P&C Insurance Holding Ltd considers insurance as stable business, which present crisis will not affect.
According to the words of member of board ERGO Marek Zacek, economic recession equally influences all spheres, including insurance. First of all, it is reflected in reduction of insurance portfolio growth, after all people buy less real estate, cars and so forth
On the other hand, recession causes growth of insurance swindle. Also because of problems with the insurance companies’ liquidity the pressure upon cost of services of the companies can increase, that, in turn, can lead to problems with insurance payments.
Torbjörn Magnusson considers, that insurance business will continue to grow. According to his words absorption will not take place; however, merges are quite possible.
If now approximately 25 % of inhabitants of Estonia do not have any insurance police, the next years this figure, most likely, will be reduced. Magnusson is sure, that in 20 years in Estonia all houses and apartments will be insured.