LATVIA: Insurance companies paid out EUR 18.5 million to farmers in 8 months this year

6 November 2023 — Marina MAGNAVAL
At the end of the harvest season, the Latvian Insurers' Association (LAA) collected data on agricultural insurance - Latvian insurers paid out EUR 18.5 million to farmers in 8 months this year, which is 30% more y-o-y. On the other hand, in the last two years, the amount has even doubled, the Latvian Insurers Association (LAA) reports.

In the first 8 months of 2023, seed and plantation insurance premiums amounted to EUR 1.5 million (including state support). At that EUR 15.5 million were paid out, which is a very rapid y-o-y increase (+71%). Of that amount, EUR 6.5 million was paid for the damages caused by the August storm. GWP in livestock insurance reached EUR 5.1 million, paid claims – EUR 3 million.

"There is a marked seasonality in agricultural insurance - farmers pay most of the premiums in early spring and late fall, and the fall premiums have not yet been paid. On the other hand, most of the paid claims during the year have already been calculated. However, even despite this time gap, we can say quite safely that this year the insurers are incurring significant losses from crop insurance. Farmers, on the other hand, have experienced that insurance is a real and useful financial risk management tool", says Janis Abasins, president of LAA.