Kindlustuse
Kindlustus is the Estonian term for insurance. It refers to a risk-management arrangement in which individuals or organizations transfer the financial burden of certain risks to an insurer in exchange for a premium. An insurance contract promises compensation for specified losses, subject to detailed terms, limits, and exclusions. Insurance covers a broad range of risks, including property, health, life, income, and liability. The core elements include risk assessment, underwriting, premium calculation, indemnity or compensation, and claims handling. Insurance is typically organized into lines or classes such as life, health, motor, home, travel, and liability, with reinsurance used by insurers to spread large risks.
How it operates. The insurer pools premiums from many policyholders to fund expected losses, expenses, and reserves.
Regulation. Insurance is highly regulated to protect consumers and maintain financial stability. In the European Union,
Estonia context. As an EU member, Estonia’s insurance market adheres to EU rules and is supervised by
Terminology. In Estonian, kindlustus is the generic term for insurance; kindlustuse is the genitive form used