The impact of climate change is increasingly being felt in Latvia, causing significant losses to the agricultural sector. However, as data of the Latvian Insurers Association (LAA) shows, insurance coverage in this sector is volatile and usually increases after natural disasters, the LAA said.

“We can talk about significant development of the insurance sector in agriculture since 2020, when the number of insured farmers exceeded 750. This number changes slightly from year to year, but overall, farmers are increasingly aware of possible losses and are more often choosing insurance as a safety cushion against unpredictable weather conditions that can affect the harvest and, consequently, income”, commented Jānis Abāšins, President of the LAA.

According to the LAA, in 2024, 813 farmers purchased crop insurance. Their premiums amounted to EUR 12.01 million, however, a total of EUR 12.33 million were paid out in claims, which also includes other risks than just damage caused by natural disasters.