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International Internet Magazine. Baltic States news & analytics Thursday, 17.01.2019, 09:14

MTPL insurance brought EUR 12.4 mln loss to Latvian insurance companies in 2017

BC, Riga, 07.02.2018.Print version
Latvian insurance companies incurred a loss of EUR 12.4 million from mandatory motor third party liability (MTPL) insurance in 2017, which is roughly 5% more than in 2016, writes LETA, according to the Motor Insurers' Bureau of Latvia (LTAB).

"Even despite an increase in premiums and a nearly 10% reduction of insurers' expenses last year, the industry has continued to operate with losses, which last year reached EUR 12.4 million," said LTAB chairman Janis Abasins.


He indicated that the insurers have been suffering losses because of rising inflation in various segments, additional costs related to an increase in indemnities paid for intangible losses, payments made to the Guarantee Fund, etc.


According to LTAB data, insurers raised MTPL insurance premiums by EUR 3.7 million or 8% year-on-year to EUR 49.87 million in 2017, whereas the amount paid out in indemnities last year grew by nearly EUR 5.6 million or 13% to EUR 48.45 million.


The average size of an indemnity grew by 6.1% against 2016 to EUR 994 in 2017.


In 2016, the Latvian insurers' loss from MTPL insurance totaled EUR 11.786 million.


The MTPL insurance system was introduced in Latvia in 1997.

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