LATVIA: Due to the pandemic, the demand for health and property insurance is growing

4 October 2021 — Marina MAGNAVAL
In the two quarters of this year, the largest type of insurance in Latvia in terms of sales volume was health insurance, which makes up 23% of the total GWP. The number of life insurance contracts has decreased, while property insurance has increased, the local press said.

The insurance markets in the Baltic region are similar, as many insurance companies operate in all three Baltic countries and offer customers similar products and services. Janis ABASINS, the head of the Insurers' Association, said that the biggest differences come from health insurance.

"In Latvia, health care has been poorly financed by the state for many years, so we have relatively developed health insurance, which has been developing only in recent years. Insurers work practically in all sectors, as they are not dependent only on tourism or air transport. So, some business volume was declining for us, but at the same time other business volume came along, because there was a demand for products that did not exist before. Let's say more specific travel insurance in relation to Covid-19, more specific health insurance", explained Janis ABASINS.

Uldis DZINTARS, a member of the board of the insurance company Balta, said that in the eight months of this year, health insurance has grown by 8%. Even though people go to doctors less often, the average cost of treatment has increased. According to him, non-life insurance has grown by only 2.6% this year, which is half as much as a year earlier. This being said, during the pandemic, the number of people insuring their property has increased by 11.9%. "People are doing various home improvement works this year because they work from home...The Covid-19 crisis has helped people to better understand the risks we face and to proactively try to address the risks, as this is certainly a very positive trend. If before we were more careless than people in Western Europe, now we are approaching in this respect", said Uldis DZINTARS.



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