LATVIA: Latvians spend very modestly on life insurance

12 December 2023 — Marina MAGNAVAL

Life insurance premiums per capita in the Baltic States ranges from EUR 60 to EUR 104, which is several times less than the average in Europe, but is comparable to other Central European countries, the Latvian Insurers Association (LAA) reports.

According to the Association, in 2022 life insurance per person in Latvia was EUR 76, in Estonia – EUR 60 and in Lithuania – EUR 104. While Poland with EUR 78, the Czech Republic with EUR 187 and Hungary with EUR 177 were also close. Slovenia has a relatively higher amount – EUR 364.

At the same time, the European average is around EUR 1,100 of life insurance premiums per person. This high average is made up of countries such as Austria and the Netherlands, where the amount of life insurance premiums per capita is EUR 598 and EUR 696, respectively, as well as France with EUR 3,096, Spain with EUR 3,922, and Denmark with EUR 4,964.

"In Latvia, we struggle with the low savings culture and people's carelessness about their personal savings, and these data show that we are not alone - the situation is also similar in Estonia, Lithuania and other countries with a similar economic situation and historical experience", says Janis Abasins, the President of LAA.