BTA: there is a growing concern about different extra risk inclusion into CASCO policies


In accordance with the information summarized by BTA Baltic Insurance Company AAS (hereinafter – BTA), a demand to include extra risks into CASCO policies has increased by 37% within the nine months of the present year, in comparison to the corresponding time period of the previous year. It testifies that car drivers appreciate the significance of voluntary insurance even more and put a greater emphasis on additional services, which are offered in the framework of CASCO policies.


Having summarized the information about the extra risks, chosen by the car drivers within the framework of CASCO policies, BTA came to a conclusion that within the nine months of the present year the largest growth of concern is related to a car rental opportunity for the time being, while the car, owned by the car driver, remains under repair – a demand to include such kind of risk into CASCO policy has quadrupled. It testifies that more and more persons attempt to protect themselves not merely from the unforeseen financial expense on the transport vehicle damage repair, but also from the inconveniences and everyday routine disturbances, which might occur provided that transport vehicle repair works might last for several days and a person is left without his car. It should be noted that in case this extra risk is chosen, clients are offered a corresponding grade car, which is maximum three years old.


In accordance with BTA information, car drivers’ concern to include transport vehicles’ maintenance risk, which suggests repair work expense defraying or other maintenance work defraying, into CASCO policies has increased significantly - by 73%. BTA observations testify that repair and other work performers do not always take full responsibility for the clients’ car damage repair, as well as service providers do not always insure their civil liability, which would provide indemnity for loss, caused to clients.


Ivo Danče, Director of Baltic Risks Underwriting Department of BTA Baltic Insurance Company: “Today, in the framework of CASCO policies, in comparison to the time period 10 years ago, a significantly broader risk coverage is offered in order to protect oneself from financial losses and inconveniences. If a previous CASCO policy provided protection against large financial expenses, related to car theft, grave car accidents, fires and other forces of nature, then a current CASCO policy’s role and significance has increased considerably, as well as even more massive opportunities of service or comfort service are offered, for example, one may purchase a CASCO policy without a deductible, to insure against cracks, to receive technical assistance on the road in different situations, having chosen corresponding insurance risks, one may obtain a car for rent for the time being while repair works are performed, to perform repair works in a car service of one’s choice and other opportunities. Development of CASCO service was promoted by both intense market competition, and the Insurers’ compliance to the ever-changing demands and daily needs of car owners. Nowadays, most people consider a car not a high-class good, but a daily necessity. When acquired habits of residents change and residents’ understanding of insurance significance grows, people care more and more about preventing the unforeseen accidents effect their daily life and cause inconvenience, that is why car drivers’ concern about extra risk inclusion into CASCO policies grows naturally. Today, CASCO service means not only car insurance against different kinds of damage, but largely – a guarantee of car drivers’ comfort maintenance”.


BTA information testifies that every year the proportion of CASCO policies, which include at least one extra risk, grows. In the nine month of the present year, 89% of all BTA CASCO clients chose to include one or several extra risks into policy risk coverage. Concluding from the total number of the policies sold, the most popular extra risks of the CASCO policies, which were chosen by BTA clients in the course of the nine month of the present year, are car key theft risk, hydro impact, and the opportunity to perform repair works in a car service of one’s choice and preference.


While CASCO service is developed and complemented with different service opportunities, the amount of paid CASCO indemnities has grown sufficiently within the years. If in 2005, BTA CASCO paid out insurance indemnities in the amount of 5.5 million euros, than last year BTA paid out already 9 million euros. In the nine months of the present year, BTA paid out CASCO insurance indemnities in the mount of more than 7 million euros. Taking into account that the most often BTA receives insurance claims regarding transport vehicles, damaged in the result of car accidents, naturally occurring, this year, BTA paid out the largest part of total CASCO insurance indemnity sum to clients for this particular risk. The next come BTA paid insurance indemnities for third party unlawful activity, car theft and damaged windshields. Taking into account the ever-growing concern of BTA clients about CASCO extra risk insurance, as well as the benefits, in case of an insurable event, the paid insurance indemnity sum increases considerably. BTA expects that in comparison to last year, BTA paid insurance indemnity sum for different CASCO extra risks shall double this year, reaching 15% from the total BTA paid insurance indemnity sum in the form of CASCO.


BTA is one of the largest indemnity payers in Baltics. Last year, in the Baltic States BTA disbursed insurance indemnities in the average amount of 398 thousand euros every business day, which makes it approximately 50 thousand euros every working hour.


About the company BTA


BTA Baltic Insurance Company AAS was established in 2014 as a result of reorganization of BTA Insurance Company SE, by splitting the company according to the geographic boundaries of business:  the Baltic States and the rest of Europe. "Vienna Insurance Group AG", which is one of the leading insurer in Europe, became the biggest shareholder of the company in August 2016. BTA obtained licence for provision of all types of non-life insurance services.



Additional information:
Agnese Grīnberga
Public relations manager
AAS BTA Baltic Insurance Company
E-mail agnese.grinberga@bta.lv
Tel. 67025661, mob. tel. 27828796