BMI's Executive Summary

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At first glance, Estonia is an attractive proposition for multi-national insurers looking to expand their businesses in Central and Eastern Europe (CEE). The structure – and apparent risks – associated with the economy are relatively low. Penetration and density levels are low, but are rising fast. Both segments should easily achieve double-digit growth over the five years to 2012. Unlike many of the formerly communist countries in the region, neither the non-life nor the life segment is dominated by a former state-owned monopoly.

However, there are two problems. The first is actual and potential size. Unless it is a very rich offshore financial centre (which Estonia is not), any country with a static population of about 1.3mn people is unlikely to represent a potential bonanza to ambitious regional insurance companies. Indeed, the small size of the market – both now and in 2012 – is the main reason why Estonia does not compare more favourably with other markets in the region. It is worth noting, though, that the new Insurance Business Environment Rating that BMI has calculated for Estonia is higher than those of either Latvia or Lithuania.

The second problem is that the dominant players are already established. In the non-life segment, the local subsidiaries of Finland's Sampo and Germany's ERGO have a combined market share of around 60%. In the life segment, the names are Hansabank/Swedbank and SEB/Ãohispank, but the figures are about the same.

Contents of the Estonia Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Estonia Overview

Key Features Of This Report And Likely Future Changes

Chapter 2 - Latest News

Evolution Since The Mid-1990s

Table: Estonia Evolution of the Insurance Sector (in millions of currency specified)

Chapter 3 - Projections And Forecasts

Table: Estonia BMI Projections (in millions of currency specified)

Projections And Drivers Of Growth

Chapter 4 - Macroeconomic Outlook

Table: GDP, Population & Output

Chapter 5 - Country Update

Political Risk Excise Delay

Economic Risk External Gap Widens

Business Environment Institutional Strength

Chapter 6 - Analysis of Competitive Conditions

Country Overview Estonia Non-Life Segment

Table: Non-Life Segment Rankings of Markets

Table: Presence of Non-Life Cross-Border Insurers

Table: Selected Local Non-Life Insurers

Table: Life Segment Rankings of Markets

Table: Presence of Life Cross-Border Insurers

Table: Selected Local Life Insurers

Whos who in the Central and Eastern European region?

Chapter 7 - Regional Context

Table: Regional Context - Premiums

Table: Regional Context Total premiums

Chapter 8 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 9 - Appendix

Table: Latest estimates/ actual figures for 2005

Table: Latest estimates for 2010

Table: Latest estimates for 2005-2010

Competitive Landscape for Europe Insurance Reports: Sample of
    Companies Ranked

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A cross-border overview of key players and their insurance market share across Europe. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's European Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports