Financial Services, Insurance, Latvia, Legislation, Transport

International Internet Magazine. Baltic States news & analytics Monday, 26.08.2019, 03:56

Loss from mandatory insurance in Latvia shrinks to EUR 120,000 in Q1

BC, Riga, 09.05.2018.Print version
Latvian insurance companies’ aggregate loss from mandatory motor third party liability (MTPL) insurance was EUR 120,000 in the first quarter of 2018, down from EUR 4.054 million in the same period last year, writes LETA, according to information released by the Motor Insurers’ Bureau of Latvia (LTAB).

LTAB chairman Janis Abasins said that despite a significant increase in indemnities paid in mandatory MTPL insurance, as well as inflation and other factors, this was the smallest first-quarter loss from mandatory MTPL insurance recorded in recent years.


“The first-quarter loss of this year was the smallest since 2009 when MTPL insurers were last seen operating without losses. To a great extent this is thanks to a hike of insurance premiums, which has allowed the insurers to cover not only the increased indemnity costs but also the price hikes caused by inflation,” Abasins said.


Although in comparison with the first quarter of 2017 the number of road accident claims dropped by nearly 10% in the first three months of this year, the total value of claims grew by more than 10%, while the average indemnity rose from EUR 762 in the first quarter of 2017 to EUR 830 in the first quarter of this year.


In Latvia, mandatory MTPL insurance is provided by ten non-life insurance companies.







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