Summary of 2020 of SEB Elu- ja Pensionikindlustus

The Estonian life insurance market is in a slight decline – in 2020, 24,086 new life insurance agreements were concluded (26,964 in 2019). Based on the statistics of the Estonian branch of SEB Life and Pension Baltic SE, 33.7% of all new life insurance agreements, i.e. 8,106 new agreements, were concluded at SEB. This is a decline of 22.6% compared to 2019. The amount of additional covers also declined by 23.1%.

Most insurance agreements are still concluded to cover risks related to loan obligations: last year, the Estonian branch of SEB Life and Pension Baltic SE concluded 5,720 loan protection agreements (7,704 in 2019).

We have consistently improved the service quality, raised awareness among clients, and increased their satisfaction. Thanks to this, our clients are given the most suitable and easily understandable solution, which can also be seen from the general market statistics: namely, only 3.1% of the insurance agreements of SEB were terminated prematurely, which is one of the lowest indicators on the Estonian insurance market (almost 2 times lower than the market average (5.9%).

Insurance indemnities

In 2020, 818 insured events took place with people insured by us. We disbursed indemnities for these events in the total amount of more than 1.3 million euros. We disbursed most indemnities for temporary incapacity for work caused by accidents, but the largest amounts were disbursed upon the death of the insured person.

We refused to disburse indemnities in 5% of all cases. The main reason for refusal was the fact that no insured event complying with the terms and conditions had taken place.

Pension savings and disbursement agreements

As at 31 December 2020, 148,439 clients were saving money in the second-pillar pension funds of SEB and 33,423 clients were also investing in their future via our third-pillar pension funds and life insurance savings solutions. We have made an effort to help our clients trust our investment choices and see saving for pension as a long-term contribution where, in addition to the short-term result, the suitable investment strategy and the final result complying with the chosen risk level are important.

Accounting for additional profit of agreements

As at the end of 2020, SEB had 26,065 long-term savings agreements, of which 16,799 were related to accounting for additional profit. Regarding the additional profit of 2020, SEB Life and Pension Baltic SE decided the following.

• For agreements with non-reducible profits, additional profit will not be accounted for, as the low-interest environment persists and the long-term profit forecast is not very promising.
• For agreements with reducible additional profits, additional profit will not be accounted for.
• For agreements with guaranteed additional profits, we will ensure the agreed additional profits.
• For pension agreements (second pillar disbursement agreements), additional profit will not be accounted for. In 2020, the economic result of pension agreements was –311,575.29 euros and no profit was generated. Therefore, the 50% of the pension agreement profit of the financial year will not be distributed to the policyholders of pension agreements, as stipulated in the product terms and conditions, and no additional profits will be assigned.

Information related to accounting for additional profit will be sent to clients individually.

If you have any questions, please call our insurance line at 665 8020 or write to us at kindlustusleping@seb.ee.