Financial Services, Good for Business, Insurance, Latvia

Health insurance led other insurance segments by the amount of premiums raised in 2019. Premiums in health insurance rose 11% y-o-y to EUR 128.338 mln in 2019, making up 22.1% of the market.

Mandatory motor third party liability (MTPL) insurance emerged as the second most popular type of insurance, with EUR 104.036 mln grossed in premiums in 2019 at a 2.3% drop y-o-y (18.7% of the market). Health insurance followed with EUR 94.986 mln, up 6.8% (17.1%), motor own damage (MOD) insurance with EUR 91.246 mln, up 3.9 % (16.4 %), and property insurance with EUR 77.647 mln, up 18.1%  y-o-y (14% of the market).

The largest amount paid out in indemnities – EUR 80.323 mln - was recorded in life insurance. Indemnities paid in this segment rose 17% y-o-y, making up 21.9 % of the market. Property insurance followed with EUR 76.066 mln paid in indemnities, up 2.6 times (20.8 % of the market), health insurance – EUR 69.61 mln, growing 14.5% (19 % of the market), MOD insurance with EUR 58.901 mln, up 3.3% (16.1%), and MTPL insurance with EUR 57.284 mln, down 0.9% (15.7 %).

"Life and health insurance traditionally show a dynamic growth, but the main feature of 2019 is the steep rise in property insurance both in premium subscription and indemnities. It proves that customers evaluqate the role of insurance and take care of their properties. The sector is also undergoing qualitative change - remote service channels and IT systems are developing," said the association's president Janis Abasins.

The insurance statistics are based on the data provided by three Latvian non-life insurance companies and six 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 operating in Latvia.