LATVIA: ISA: price and insurance contract terms are the most important factors in choosing insurers

16 January 2024 — Marina MAGNAVAL
The two most important factors for Latvians when choosing an insurance company are the price and the insurance contract terms, according to the insurance industry study conducted by the research center SKDS in November 2023, the Latvian Insurers Association (LAA) reports.

The study shows that 82% of the survey participants recognized the price as an important factor, 62% recognized the terms of the contract as an important factor. The LAA noted that in the last two years, the importance of both the price and the contract terms has slightly increased in the selection of an insurance company.

"Remembering last year's jump in inflation, which empties citizens' wallets much faster, price as the most important factor is not surprising", says Janis Abasins, the President of LAA. "However, the fact that the contract terms are the second most important factor, and its significance is increasing a little is very positive - this means that people read contracts and think about what service they choose", he added.

The reputation of the insurance company is important to 55% of respondents when deciding to purchase a policy. Loyalty goes next as 36% of respondents stated that an important factor is that they have been customers of the same insurance company for a long time. The recommendation of a broker or other intermediary is an important decision-making factor for 23% of survey participants.