LATVIA: Janis ABASINS: The Latvian insurance market has adapted to the pandemic conditions

26 January 2022 — Marina MAGNAVAL
The Latvian insurance market will continue to grow this year, with GWP growing by about 3-5%, according to Janis ABASINS, President of the Latvian Insurers Association and Chairman of the Board of the Latvian Motor Insurers' Bureau.

He pointed out that last year in general was a good one, as the market expanded by more than 5%, reports.

"Let's hope that 5% growth in the insurance market could continue this year. Previously, there were more optimistic forecasts of 5-7% growth, but it is possible that due to increasing energy costs, we should expect growth rather at 3%. However, development of the market will be a positive factor", explained ABASINS.

President of Latvian Insurers Association also noted that after the start of the pandemic, the insurance market was in the red area for five consecutive quarters, but 2021 figures show that the market has adapted to the pandemic conditions. Of course, there are types of insurance that have not yet returned to pre-pandemic levels, such as travel insurance, and besides the market is also affected by rising inflation.

"There has been an increase practically in all major types of insurance. The only major type, which is still showing a decline in 11 months of 2021, is MTPL", said ABASINS, adding that MTPL insurance decreased by 12% during the period. According to him, GWP increase in life insurance for 11 months of 2021 was 7% compared to the corresponding period of 2020, which is a good result. Health insurance, on the other hand, grew by 9%, indicating that companies are insuring their employees, even though health insurance has fallen sharply in some sectors. He added that property insurance had risen by 16% for 11 months of 2021. "Part of this increase is, of course, due to raising insurance premiums as construction costs go up", said ABASINS.

According to the President of Latvian Insurers Association, travel insurance grew by 23% in the 11 months of 2021, but it must be considered that in 2020 tourism slowed down significantly, so this increase does not show much. On the other hand, GWP increase in Motor Hull was 5.6% in the respective period, which is a stable up trend", he explained.

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