How ERGO Baltics is rethinking insurance in a digitally driven Baltic region

“We run three countries as one unit”

Jonas Piela: The Baltic states – Lithuania, Latvia and Estonia – are in north-eastern Europe on the Baltic Sea. Despite their relatively small size, they are digital pioneers, with highly advanced government infrastructure, largely paperless administrative processes, innovative technologies. How do you run a leading insurer in this environment, across three countries, three languages and an almost paperless ecosystem?

My guest is Ursula Clara Deschka, CEO of ERGO Baltics, who more than most shows how international transformation, a high full‑time employment ratio and radical process simplification work in practice. Welcome to the podcast, Ursula.

Ursula Clara Deschka: Hello Jonas, it’s great to be here.

Jonas: My pleasure. Say a few words about ERGO Baltics – and am I even pronouncing it correctly?

Ursula: Yes, absolutely. It’s called ERGO Baltics. We are one of the leading insurance groups in the Baltics; in our three countries we are among the top three insurers. And we’re also the strongest brand, because we are the only insurer that operates under a single brand – namely ERGO. We manage these three markets as one unit. Of course, we take into account what customers in the individual countries need and what regulation requires, but as a rule we steer the market as a single entity.

Three countries, three languages – and no “Baltics” from the inside

Jonas: What does the organisational and professional day‑to‑day look like when you run a business across three countries? I imagine that’s not exactly easy.

Ursula: Seen from the outside, especially from Western Europe, people often say “the Baltics”, as if it were a homogeneous region with one language and one culture. I like to compare it to a company that brings together Germany, France and Italy. That’s how you can picture ERGO Baltics: all in the EU, with similar regulation in place, but three different countries, cultures and languages.

So the goal cannot be to do everything in exactly the same way for all three countries. We have to decide carefully: where can we harmonise and create a common basis – and where do we have to differentiate because of customer needs, distribution requirements, legislation or even the labour market.

A good example is customer communication. If you have a strategic message – for us it’s the core ERGO claim “Simple, because it matters” – you spend a long time figuring out how to translate it into three languages in a way that not only the words are understood, but the underlying message really resonates. This is very exciting – and all the more so for me as a foreigner, because I rely on people’s reactions to understand whether the language and the messages actually work.

How much “overhead” do three cultures create?

Jonas: Compared with Germany, where many things are fairly homogeneous – how much extra effort do three countries, languages and cultures create? Do people tend to overestimate that or underestimate it?

Ursula: The obvious approach would be to have three insurers for three countries. We’re already a step ahead and say: we keep the foundation the same, because we have similar general conditions and geographic proximity. At the same time, we look very carefully at what differs in detail.

Our distribution channels, for example, are very different in the three countries. We have separate legal and compliance teams for each country. HR also needs its own teams in every country – they have to speak the language and be able to talk with employees about things like employment contracts.

Jonas: And what do you share centrally – IT?

Ursula: Not only. Even in Legal, there is a Baltics part and then country‑specific parts. In HR it’s the same: strategy or employer branding can be shaped across the entire Baltic region, while implementation is mixed – both central and local.

Five languages – and English as the common foundation

Jonas: You have three countries with three different languages. Do you speak all three or do you work in English? How does that work – especially when you first arrived there?

Ursula: Each country has its own language, and the languages are very different. I like to use the example of how you say “insurance” in the local languages:

•       Estonian: “kindlustus”

•       Latvian: “apdrošināšana”

•       Lithuanian: “draudimas”

These three words are as different from each other as the languages themselves. Our common working language is therefore English.

Because of history, especially in Latvia there are also customers who speak only Russian. In total, we operate with five languages in three small countries.

That has consequences:

1. There is a risk of misunderstandings, as none of us are native speakers of English, so technical or emotional nuances can be lost.
2. Communication is slower: you have to explain more and coordinate much more precisely to make sure everyone truly shares the same understanding.
3. Complex information has to be translated into the local languages so that every single employee really understands it. That takes time and can lead to different levels of information.

On the other hand, it forces us to communicate very clearly. We really have to boil complex issues down to the essentials, communicate more consciously and listen more. I can’t simply assume that the message has landed – I have to check in and ask. And we have to foster a culture in which employees also ask for clarification. This attitude would actually be useful everywhere, not just in the Baltics.

An office with a single printer

Jonas: You’re almost paperless, embedded in these highly digital Baltic states. How does that work in everyday life – and what does that mean in concrete terms?

Ursula: I like to start with the office. In Estonia we are almost paperless. One problem is sitting right in front of you: I still like paper and sometimes write down my thoughts by hand.

About 300 people work in our Tallinn office. There is exactly one printer. The only person I have ever seen at that printer is myself. Our customers do not receive letters from us. They get their documents in their digital mailbox – that is the standard process.

In Estonia, the state is truly 100 per cent digital: tax returns, registration of a change of address, divorce, birth, death – everything runs digitally via a central digital identity. That creates a different culture of trust. In Germany, people strongly trust in paper: if I have something in my hand, it has value. In Estonia – and largely in Latvia and Lithuania as well – the rule is: if I can view it digitally, I can trust it.

But digitalisation doesn’t mean that 100 per cent of contracts are concluded purely online via the website.

Digital infrastructure and transparency in motor insurance

Jonas: Explain how this kind of digital infrastructure works in the insurance sector in concrete terms.

Ursula: There’s a vehicle register, which is linked to the insurance register, and this is in turn connected to our systems. Customers can access this state ecosystem at any time and check things like: Where am I insured? Where is the other party in my accident insured? What would my policy cost at this exact moment?

Premiums in the motor segment are adjusted every minute, and these changes are visible immediately. Something like that only works with an end‑to‑end digital infrastructure.

Jonas: Is that something like a state‑run Check24?

Ursula: It’s not a comparison site with commissions. From there, customers are redirected to the insurers’ websites and conclude their contracts directly. It simply serves transparency – and this transparency is something that people are used to. They expect it from insurers too.

Jonas: And is that your main distribution channel?

Ursula: In motor, yes: most customers compare there and then take out their cover with us. In life insurance, it looks different: a lot happens via call centres, we have local agencies and brokers – so sales channels as you would know them from Germany.

When everything is digital: price, brand and claims experience

Jonas: This transparency sounds like strong price competition. Is price your main differentiator?

Ursula: In highly standardised motor third‑party liability, price naturally plays a big role. But we can still differentiate through:

• the experience in the event of a claim – that’s where it’s decided whether customers are satisfied with their insurer,
• and the brand: trust in a brand and the associations people have with it.

With increasing digitalisation, brand becomes even more important. When customers no longer go only via Google, but via other search systems or AI‑based assistants, brands become signals that these systems surface. Customers then explicitly look for brands they trust.

Meetings without pens – but with culture

Jonas: You’re the only one in the office with pen and paper. Do the others sit in meetings with laptops or tablets and take their notes there?

Ursula: Yes, as a rule everyone sits there with laptops, iPads or even just their phone and takes notes digitally. But in the end, it’s not about paper versus screen; it’s about the culture of collaboration.

What matters is: do we come together, focus on the topic and are we really present – mentally and physically? I can doodle on paper just as you can on your iPad. Likewise, I can hide behind a laptop and answer emails. That’s a question of meeting culture, not of the medium.

97 per cent full‑time – and why it works

Jonas: You have an extremely high full‑time ratio. Is that because everyone absolutely wants to work for you? Or do you simply not offer part-time contracts? Or is it society‑driven?

Ursula: It is primarily a social phenomenon. In the Baltic states, very few people work part-time overall; there is a culture of full-time work. The proportions of men and women are almost identical.

Jonas: How do you compensate for that, especially for parents?

Ursula: By being very flexible with working hours. It’s about availability, not presence at any price. What’s typical is: one parent takes the children to school or kindergarten in the morning, the other picks them up in the afternoon and is there for the children later in the day, and then works again in the evening.

As a result, the late afternoon is a bad time for meetings – that’s pick‑up time. Once that’s the norm, it’s easy to take into account in daily practice: you simply don’t schedule critical meetings at 4 p.m., and you know that some parents are more reachable later in the evening or early in the morning.

In the end, it has to be about results, not about availability. Around 97 per cent of people in our company work full‑time – and that works if we think intelligently and humanely about working hours.

A highly dynamic labour market – and what that means for loyalty

Jonas: You mentioned the dynamic labour market earlier. What does that mean in concrete terms?

Ursula: In the Baltics, average staff turnover is around 20 per cent per year – meaning that, on average everyone changes jobs every five years. And not just within the sector, but across industries. This, too, is a cultural issue: people simply want to gain as much experience as possible; they are keen to develop both professionally and personally, which is why there is a high turnover rate.

In the financial industry, it’s roughly 18 per cent. We ourselves are at 12 to 13 per cent turnover – still high compared with Germany, but relatively low for the local market.

That means, firstly that we constantly have knowledge draining away, because people leave the company who have gained and contributed experience. Secondly, it’s a permanent source of new ideas and perspectives.

This is a very exciting field for a company to operate in, as you have to ensure every day that staff want to stay with the company. The issue of culture is extremely important in this regard, as staff can very easily decide to leave.

Ultimately, most changes are initiated by the staff themselves. Labour law is similar to the EU, but notice periods are much shorter: depending on the country, between two and four weeks – even for people who have been with the company for 30 years. This applies symmetrically for employees and employers.

Jonas: That also reduces the fear of not finding a new job. If many people move, there are many vacancies too.

Ursula: Exactly. High mobility and short notice periods create dynamism. For us as an employer, this has pros and cons:

•       Advantage: If we find a suitable person, they’re usually available within four weeks at most.

•       Challenge: We need processes to secure knowledge and cushion handovers when several people leave at the same time.

Of course, you can’t simply copy the German model into the Baltics – and vice versa. Systems work in context. What I find exciting: it shows that high flexibility and digitalisation can work extremely well – if the culture and framework conditions fit.

Jonas: Does this mobility lead to lower loyalty?

Ursula: On the contrary. I experience loyalty in the Baltics as extremely high. Precisely because people could decide to leave at any time, those who stay are very consciously here. They don’t stay because of long notice periods or pension systems, but because they like the company.

We feel that in engagement. Our task as leaders is to create a culture in which people say: “For this company, this vision and my role in it I’m happy to stay.” We were recently recognised as a Top Employer in all three countries and thus contributed to ERGO’s overall award. Culture is a central topic for us.

Best practices in our own organisation – and beyond

Jonas: You’re a fan of best practices – what does that mean in concrete terms for you?

Ursula: On the one hand, we work very closely together internationally at ERGO, and on the other, I see our own organisation as a learning field. We can try things out locally, check whether they work, and understand whether something only fits locally or can be scaled.

A concrete example it the claims process in group health insurance.

In Latvia, around two‑thirds of employees have group health insurance – a standardised product. There we introduced a claims process in which only about two hours pass from submitting the claim to the payout.

We consciously started in Latvia because that’s where the greatest experience with this product lies. Now we’re examining how we can transfer this process to the somewhat differently structured products in Estonia and Lithuania. It’s not about copying it 1:1, but about learning and adapting.

Everything that is successful for us in the Baltics already works in three countries. That makes it particularly interesting for other ERGO markets worldwide. We have an intensive exchange, including in the context of ERGO’s internationalisation strategy.

Growth through acquisition – and three key lessons

Jonas: Speaking of growth: you’ve just acquired a competitor. Tell us briefly about that.

Ursula: On 1 January, we bought ADB Gjensidige and significantly increased our market share – from around 13 to roughly 20 per cent. This transformation phase has so far been the most exciting period of my professional life. Many people tell you beforehand what a merger means. Experiencing it yourself is something else entirely.

I have three key lessons:

1. Clearly communicate the vision
   It is essential to have a clear vision and to convey it: why are we doing this? Where do we want to go? Where is value created? Where will we be in five years? That has to be tangible for all of our 1,800 employees.
2. Create structure and responsibility
   Beneath the vision, you need clear governance: responsibilities and decision‑making paths. Decisions must then be taken locally – in countries, divisions, teams. Otherwise you lose too much time during the transformation and people don’t know whether they’re still on the right track.
3. Actively manage culture and communication
   This is a topic that is almost always underestimated. I thought I wouldn’t underestimate it – and still realised how much daily work it involves. Bringing two cultures together is not something that “just happens on the side”. You need active processes for this.

We set up a change management programme based on the ADKAR model:

•       Awareness

•       Desire

•       Knowledge

•       Ability

•       Reinforcement

In workshops, employees experience the phases of a change. For each individual – regardless of level, whether they’ve been in the company for two weeks or 30 years – it’s about:

•       Do you understand why we are doing the merger?

•       Do you want to be part of this change?

•       Do you have the necessary knowledge and skills?

•       Can you actively support the change?

“Doing more than you think is necessary”

Jonas: If someone tells you beforehand: “You’re underestimating culture and communication”, you can react by consciously doing more than you think is necessary. Do you see it that way too?

Ursula: Absolutely. You should communicate more than you initially think is necessary. Explain more, address issues more often, create more clarity: what is the next step? Where are we in the process? And keep reaffirming the vision: this is our goal, it remains, we are continuing on this path.

Up to the point where people can articulate the vision themselves – that is, in my view, the moment when it is truly anchored. People then want to tell it themselves.

Every change has emotional aspects: fear of loss, even if it’s “only” about a familiar system you’ve worked with for ten years. That’s why it’s important to talk a lot – and to do so in a positive, clear and honest way.

Jonas: I really enjoyed the conversation with you – the joy and energy you bring across come through very strongly. Thank you very much for being here.

Ursula: Thank you so much.