The volume of gross insurance premiums written by BTA Baltic Insurance Company AAS (hereinafter – BTA) in Latvia, as well as its branches in Lithuania and Estonia, in six months of 2017 were 82.2 million euros, growth by more than 17.8 million euros or 28%, compared to the first half of 2016.
The largest growth of the volume of premiums in Latvia in the first six months of 2017 was in CASCO and Health insurance, by 0.7 and 2.8 million euros respectively. The fastest growth in the volume of premiums was observed in Health insurance – by 45%, which is attributable to the increase in the number of customers.
The fastest growth in the Baltic States was in the auto insurance segment and Health insurance. In the auto insurance segment, particular growth was achieved in truck insurance. The growth of CASCO insurance premiums primarily is based on the Lithuanian market growth, where transit is on the rise, thus contributing to the growth of customer portfolio and the amount of premiums written, which has reached 8.9 million euros within these six months.
In the first half of 2017, BTA has considerably improved its customer service quality, with a particular focus on insurance claim case handling speed. The average claim case handling speed, compared to the first half of 2016, has increased by 50%. The number of fast-tracked claim cases, when insurance indemnity is disbursed within 1-3 days, has nearly tripled in Health insurance, accounting for 52% of cases in the first six months of 2017, whereas this proportion was just 22% in 2016. The proportion of claim cases, where insurance indemnity has been disbursed within 1-3 days, comprise 38% in other insurance types, while the ratio of indemnities disbursed within 4-7 days is 20%.
The total volume of incurred claims in the Baltic States within the first six months of 2017 has increased by more than 6.8 million euros or 18%. The fastest increase in indemnities was observed in Travel insurance (114%), which was due to a number of major road traffic accidents and in MTPL insurance, an increase by 4.5 million euros or 28%. The average indemnity paid in MTPL and CASCO insurance has increased by 17%, which can be explained by a rise in car repair prices, the increasing technical complexity of cars and increase in intangible costs – payment of indemnities for damages inflicted to person.
BTA Management Board Chairman Jānis Lucaus: ”Within six months, we have achieved a 28% growth in gross written insurance premiums, which is double, compared to the overall Baltic insurance market growth of 14%. We have outperformed the overall market growth pace of insurance premium volume increase in each of the Baltic States. The customer is what matters to us, and just because of that – to improve the customer service quality, we have launched our customer portal this year, which considerably improves the insurance policy and indemnity administration experience of our customers. We are a company with a mission to assist our customers in the insurance field, by offering better insurance product solutions, as well as furnishing our customers with comfortable and fast service. Responsibility is made simple when together with BTA, which is the cutting-edge insurance company in the Baltic States.”
BTA customers have already appreciated the versatile functionality of the customer portal, especially the ease of making Health insurance claims and the fast receipt of insurance indemnity – a Health insurance claim placed in the portal is compensated within two business days. J. Lucaus indicated that other customer service channels are also improved, parallel to the customer portal. Much effort has been put into the improvement of customer service speed at the Customer Support Service. For instance, the number of insurance claim cases, when decision regarding car repairs has been made during the telephone conversation with the customer, has increased by 17%, and the customer can take the car to the agreed upon car repair shop right after the conversation. Thus the indemnity receipt process is made fast and comfortable for the customer.
BTA has also improved the efficiency of its central office this year – since July 1 it is under one roof in the Place Eleven building at 11 Sporta Street. Relocation to new office premises has brought considerable benefits not only to customers, but to employees as well. Being under one roof considerably reduces the administrative costs, as all employees are located in one building, thus facilitating and accelerating the internal communication, which has a direct positive impact on customer service speed and quality. BTA staff also enjoy the new premises, the modern work places and the vital colours matching the new visual corporate identity.
BTA Baltic Insurance Company is a major insurance company in the Baltic States, offering the broadest range of non-life insurance services in Latvia, Lithuania and Estonia. The largest shareholder of BTA is Vienna Insurance Group AG, one of the leading insurers in Europe with 190 years of experience in the insurance field. More than 50 companies in 25 countries constitute the group, which employs 24,000 employees. Vienna Insurance Group AG is a clear leader in its core markets in Europe maintaining high rating of financial stability – Standard & Poor’s A+ (stable outlook), with a listing on the Vienna and the Prague Stock Exchange.
Marketing and Public Relations Department Director
BTA Baltic Insurance Company AAS