LATVIA: LAA: The insurance industry recovering from the downturn, but no growth

3 August 2021 — Marina MAGNAVAL
In the first half of 2021 the insurance market remained stable - although economic situation is very volatile, total GWP amount and paid claims remained at last year's level, as the Latvian Insurers' Association (LAA) reported last week.

Total GWP for the first six months reached EUR 276.6 million with the largest share generated by health insurance (EUR 64 million), which occupies 23.2% of the market and has grown by 9% y-o-y. LAA noted that due to the pandemic, health insurance is becoming more popular supported by people's concern for their health.

Life insurance, on the other hand, continues to fall slowly (EUR 58.7 million, -7%), as well as MTPL (EUR 39.5 million, -16%). MTPL volumes are affected by the decrease in policy prices, LAA explained. Travel insurance for the period amounted to EUR 3.7 million, which is 18% less y-o-y. However, this segment had quite opposite trends this year - in 1Q2021 the decline was 49% y-o-y (as the first quarter of 2020 was still supported by active travel), and in 2Q2021 it recorded significant growth - by 38%, as quite intensive travel resumed thanks to the introduction of vaccination certificates and the summer season.

Paid claims in the first half of 2021 amounted to EUR 164.6 million with the largest part generated by health insurance (EUR 38 million; +21%) and life insurance (EUR 37.6 million; - 20%). According to LAA, health insurance is generally experiencing an increase in customer interest in terms of both premiums and paid claims. However, the fastest increase in claims in the first six months was in the property insurance - by 38%.

The data of LAA includes data from 3 risk insurers operating in Latvia (Balta, Baltijas Apdrosinasanas Nams and BTA Baltic) and 5 branches of foreign risk insurers (Compensa, ERGO, Gjensidige, If Insurance, Swedbank P&C), as well as 2 life insurers (CBL Life & SEB Life and Pension Baltic) and 4 branches of foreign life insurers (Compensa Life, ERGO Life, Mandatum Life and Swedbank Life) in the territory of Latvia.

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