Insurance market stable in Latvia, say experts

Insurance companies have issued more than €276 million in gross premiums in Latvia during the first half of this year, which is 0.2% less than in the corresponding period of 2020, Latvian Television reported July 26.

Meanwhile, the amount of reimbursements paid increased by 0.2%, reaching almost €165 million, according to data from the Latvian Insurers Association. The most popular types of insurance are health insurance, life insurance, and KASKO.

The largest increase in the first half of this year, compared to the corresponding period last year, is for property insurance, while the biggest fall is for road transport civil liability insurance.

In the amount of reimbursements paid the biggest increase in the first half of this year is for property insurance. The rapid increase has been affected by the cost of insurance compensation – €5.8 million – for the burned Depo DIY store in Rezekne. The biggest drop has been observed in life insurance.

Latvian Insurers Association President Janis Abāšins explained the latest statistical figures with the economy recovering from the Covid-19 crisis slower than planned.

“If there was already more and better economic activity and a faster recovery from the Covid-19 crisis, then, of course, the insurance sector would change something more and certainly resume some growth in certain types of insurance more quickly,” Abāšins said.

Amid growing concerns about the spread of the Covid-19 virus Delta strain, there is increasing talk of tightening restrictions again in the autumn. In this situation, experts estimate that certain types of insurance would become even more demanded.

"We think property insurance and civil-liability insurance [increases] will continue because it really has a very important background. People's funds, according to banking statistics, accumulate. They want to protect their things, which are now even more threatened by this building inflation, as well as in cases of civil insurance, anyone is at risk living in apartments, let us say, for flooding their neighbors," explained Uldis Dzintars, member of the insurance company's “Balta” board.

There is also a growing interest in health insurance. According to Abāšins, this is due to years of insufficient state funding for healthcare.

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