LATVIA: LAA: The war in Ukraine has forced 24% of Latvians to think about savings for the future

17 May 2022 —
The war in Ukraine has made many Latvians think about their own and their family's financial safety and take measures to improve it - a quarter or 24% of Latvians have started to create savings, insure their lives or take legal action to settle their liabilities, according to the Latvian Insurers' Association (LAA) and the sociological research agency Norstat.

"Worries about the future are often on the agenda of people after critical and difficult situations as the war in Ukraine, but before that the Covid-19 pandemic obviously forced many Latvians to stop and realize that tomorrow may be completely different for themselves and their families", says Janis ABASINS, LAA President. "In this situation, we insurers should tell customers more about the benefits of accumulative life insurance because it is in fact a" three in one "life insurance indemnity, financial savings for the future, as well as settlement of legal obligations, because a life insurance contract can specify the beneficiary, who will not have to go the long way to receive money", he explained.

Of those Latvians who have changed their perception of importance of the family's future stability due to the war in Ukraine, 10% have admitted to saving in cash, another 6% have started to save in cash, 5% have purchased life insurance and 3% have taken legal action as settlement of obligations by concluding powers of attorney, inheritance, marriage contracts, etc. On the other hand, 68% of respondents have admitted that their saving habits have not changed due to the events of recent months.

The survey also showed how people's concerns about their own and their family's future have been affected by the Covid-19 pandemic. In the 2022 survey, 70% of respondents said that the pandemic had not changed their saving habits, which is 14% more than in 2021, when the impact of the pandemic on saving was rejected by 56% of respondents. However, the pandemic has led 19% of respondents to think more about creating a financial cushion and 3% - to buy life insurance.