LATVIA: Baltic Insurance Conference: the most significant challenges in the coming years are related to data and digitization

30 April 2024 — Marina MAGNAVAL
The most significant challenges of the insurance industry in the field of regulation and development in the coming years are related to data and digitization.

Implementation of the open data concept, strengthening of data security, effective use of the artificial intelligence, as well as addressing customers via new channels - these were the most important conclusions at the international conference "Insurance and reinsurance in the Baltics", which took place on April 25 in Riga.

At the conference the participants highlighted three main areas regarding the regulation of the insurance industry at the EU level - open data and data security in digitization, investment management and improvement of risk underwriting based on various factors.

Among other things it was noted that life insurance in Latvia and in the other two Baltic states, Lithuania, and Estonia, currently plays a smaller role than on average in the European Union, especially in the old member states. Therefore, the participants were trying to find an answer to the question - how to promote life insurance, as in the Baltic States, according to the insurers’ experience, people tend to protect property not health and life.

The third major topic was the impact of climate change and natural disasters on insurance. Losses caused by natural disasters are increasing every year - in Europe, the average increase is 5-7% per year. This is very serious and means that in the near future covering losses may become very challenging for insurers, so the Baltic States might also have to think about state involvement, as is the case in other European countries.

The conference "Insurance and reinsurance in the Baltics" is the most important industry event on the Baltic scale, it is a traditional meeting place for insurers, reinsurers, bankers, brokers, and other financial institutions from the Baltic and European countries. This year the conference was held for the 19th time and gathered over 200 participants from more than 10 countries.