Estonia, EU – Baltic States, Financial Services, Insurance, Transport

Andres Piirsalu, a member of the management board of the association, stated that in two months, Estonian insurance providers have been notified of 1,945 insured events that were caused by the volcanic ashes originating from Iceland. Nearly a third of these events are still being processed.

“The total loss caused by the volcanic ashes upon the Estonian insurance sector amounts by today to 10.4 million kroons and the amount is likely to grow somewhat higher,” he remarked.

On 4 per cent of the reported cases, the insurance indemnity has been refused.

Piirsalu estimated that the extensive and long-term flight bans caused by the Icelandic volcanic ashes was a completely new situation for the global insurance sector. “Foreign insurance companies also lack a uniform position on whether the travel interruption damages caused by the volcanic ashes should be compensated or not,” he explained.