Financial Services, Insurance, Latvia

Meanwhile indemnities paid in the reporting period grew 10% year-on-year to EUR 217 million. It has been the biggest amount of indemnities paid in Latvia in the past five years, growing by EUR 60 million since 2011, and exceeding EUR 200 million for the first time, the association said. The biggest rise in indemnities was recorded in property insurance – by 19.9%, mainly because of devastating fires.

The biggest amount of indemnities was paid under health insurance – EUR 50.1 million, which is by 16.8% more than in 2014. Premium subscription in this segment rose by 10% to EUR 67.2 million.

The biggest rise in premium subscription was recorded in third party liability insurance – by 13%, not only because of demand for such insurance in some jobs, but also because residents and companies are more aware of risks in relation to damages caused to third parties.

The biggest share or 24.2% of the market in 2015 was taken by life insurance with EUR 90.2 million subscribed in premiums, up 9.7% from 2014. Claims paid under life insurance are also growing – to EUR 44.7 million.

The third largest amount of premiums was subscribed in health insurance – 18% of the market, growing by 10% from 2014, followed by motor own damage (MOD) insurance with 17.9% of the market, growing 6.8%, and mandatory motor third party liability (MTPL) insurance with 15.2%, growing 5.7% year-on-year. Property insurance had 13.7% of the market, with premiums rising 3.2%.

The largest amount of indemnities last year was paid out in health insurance (23% of the market), MOD insurance (21.7%), life insurance (20.6%), MTPL insurance (19%), and property insurance (11%).

„Last year had been positive because premium subscription rose 7% and indemnities paid event 10%, which is good news for users of insurance services,” said the association’s president Janis Abasins.

The data include information from five Latvian non-life insurance companies and five Latvian branches of foreign non-life insurance companies as well as two Latvian life insurance companies and four Latvian branches of foreign life insurance companies about their operations in Latvia.

The Latvian Insurers Association has 16 members, covering 99% of the Latvian market.