Latvia, LAA: In Q3 insurance market returned to growth after five consecutive quarters of decline

3 November 2021 — Andrei Victor
Latvian insurance industry has returned to growth in the third quarter of 2021 after five quarters of decreasing GWP, informed the Latvian Insurers' Association (LAA). LAA representatives mentioned that despite the local economy is still struggling with the consequences of the Covid-19 pandemic - the total amount of Q3 2021 GWP has increased by 2.9% compared to the previous year.

On insurance classes, health insurance segment has shown steady growth throughout the pandemic, while MTPL insurance reported a moderate increase. The decrease in MTPL can be explained by the fall in tariffs, while the double digit increase in property can be explained by the great potential offered by the local market, local experts estimating that ah the moment o only a quarter of all properties are insured.

"Latvia's economy is recovering from the crisis caused by the first waves of the pandemic faster than initially forecasted, and future forecasts are also positive. Insurance is a sector in which economic fluctuations are reflected with a time lag, therefore the return to growth in the third quarter of this year is a very gratifying indicator", said LAA President Janis ABASINS.

ABANSINS mentioned that the COVID 19 pandemic has changed not only the insurance market dimensions, but also its content: the demand and supply of insurance products: "For example, health insurance has strengthened its position in the market and in people's minds".

LAA figures indicates that at the end of September 2021 the local insurance industry totaled EUR 420.3 million, of which, the largest GWP shares were accounted by:

  • Life insurance - 96.2 million euros (22.9% of the market, + 1.8%)
  • Health insurance - 89.3 million euros (21.2% of the market, + 8.4%)
  • MoD - 67.7 million EUR (16.1% of the market, + 5.1%)
  • Property insurance - 62.8 million euros (14.9% of the market, + 12.2%)
  • MTPL - 59.6 million euros (14.2 % of the market, -13.6%)
At the "claims chapter", the largest shares were accounted by the following classes:

  • Health insurance - 58 million euros (22.8% of the market, + 15.4%)
  • Life insurance - 55 million euros (21.6% of the market, -13.9%)
  • CASCO - 47.6 million euros (18, 7% of the market, + 7.1%)
  • Property insurance - 43.5 million euros (17.1% of the market, + 21.2%)
  • Land transport CTA - 38.8 million euros (15.2% of the market, -7.2%)
It is worth mention, the LAA presented figures includes the aggregate date of 3 non-life local market players (Balta, Baltijas Apdrosinasanas Nams, BTA) and 5 EU branches of NL insurers (Compensa, ERGO, Gjensidige, If Insurance, Swedbank P&C), as well as 2 life local insurers (CBL Life and SEB Life and Pension Baltic) and 4 branches of foreign life insurers (Compensa Life, ERGO Life, Mandatum Life and Swedbank Life).

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