The Latvian insurance market saw a 9.87% increase in GWP, in 2025, to almost EUR 1.35 billion, data provided by the National Bank of Latvia show. Along with the decreasing inflation, both GWP and paid claims growth pace slowed last year, as compared with 2024.

Out of the total GWP, insurers who are members in the Latvian Insurers Association (LAA) recorded a business increase by 4.5%, to EUR 808 million.

Except for mandatory MTPL and assistance insurance, all non-life insurance lines saw a double-digit growth in GWP. As such, total non-life GWP reached EUR 1.08 billion, up by 10.7% y-o-y. At the same time, paid claims only grew by 2.8%, mostly due to the “calmer” year in natural catastrophes terms, with the exception of agriculture, where heavy rainfall caused damage to crops.

On the life insurance side, the savings and annuity classes recorded a negative change in GWP. Overall, life insurance premiums went up by 6.7%, to EUR 269.7 million. Indemnities paid increased y-o-y by 4.37%, to EUR 190.7 million.

Customer-focused reforms gain traction

Several measures were introduced in 2025 to improve customer experience. Amendments to the Insurance Contract Law will require insurers, starting next year, to draft policy terms for individuals in plain language. All exclusions must be clearly listed, and policies must explicitly state both covered and uncovered risks.

At the same time, improvements to the ombudsman system aim to simplify complaint handling. These include shorter review times, the introduction of online settlements, and higher thresholds for eligible complaints.

According to Jānis Abāšins, President of the Latvian Insurers Association (LAA), these steps are designed to enhance transparency and accessibility for policyholders.

In 2025, the ombudsman received a record 86 complaints, reflecting growing consumer awareness. Of the 81 cases reviewed on their merits, nine were fully or partially upheld, 71 rejected, and one resolved through settlement



Access xprimm.com database and download the Latvian insurance market statistics.