Location map
author: OCHA/ ReliefWeb

- in eastern Europe, bordering the Baltic Sea;
- Neighbours: Lithuania, Estonia, Russia, Belarus.

- maritime climate with wet, moderate winters.

Macro indicators
* 2018 estimates
Pop. density*:29.9people/km2
GDP*:29.5EUR billion

European Union:
EU member, since 2004

Currency: Euro
Code: EUR
Since: 2014
- replaced Latvian lats (LVL)

Insurance market portfolio
* 2018 estimates
Overall Property*:12%
Overall Motor*:32%



LATVIA: Real estate intermediaries required to purchase civil liability insurance

Real estate intermediaries in Latvia will be required to purchase professional indemnity insurance, according to the regulations of the Cabinet of Ministers (CM), which entered into force on 2 October. The professional liability of real estate agents must be insured to cover damage caused to a third party as a result of the agent's acts or omissions.

LATVIA: Compensa VIG will pay more than EUR 1 million indemnities for Lido fire incident

On the evening of June 11, a high-risk fire broke out in the meat processing and production workshop of the company "Lido", located in Riga. The flames had affected a two-story production building - a hangar-type warehouse, an administrative room and a smoking workshop. During the fire, a total of 600 square meters of premises were damaged.

STATISTICS: LATVIA, 1Q2020: Life insurers ended Q1 on loss even tough the GWP volume expanded by more than 75%

Latvian insurers reported EUR -3.52 million net loss at the end of March vs. EUR 4.87 million net profit in Q12019, according to figures released by the Financial and Capital Market Commission (FKTK). Non-life insurers closed Q12020 with a net profit of EUR 7.85 million (vs. EUR 3.64 million a year ago), while the life insurers reported a negative result of EUR -11.37 million vs. a net profit of EUR 1.22 million at the end of March 2019.

LATVIA: FCMC might be morphed into a Central Bank division

At the end of May 2020, the Ministry of Finance (MoF) from Latvia has submitted to the Cabinet of Ministers an assessment prepared in co-operation with the Central Bank of Latvia and the Financial and Capital Market Commission (FCMC) regarding a possible merge between the Central Bank and FCMC, planned to start in 2022 - 2023.

LATVIA, COVID-19: FKTK announced it will ensure an individual and flexible approach in supervising the financial market participants

The Latvian Financial and Capital Market Commission (FKTK) announced in the light of the position expressed by the European Central Bank (ECB), the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), ensuring the supervision of financial sector participants will implement an individual and flexible approach, based on the assessment of actual situation and the effects of COVID-19 and making use of options provided by the regulatory framework.

STATISTICS: LATVIA, 3Q2019: Insurers' profits doubled to ~EUR 18 million

The Latvian insurance market totaled EUR 588.70 million at the end of September 2019, or 3.69% more y-o-y, according to data published by the Financial and Capital Market Commission (FKTK). At the same time, the insurance companies paid EUR 384.20 million in claims (28.81% more y-o-y).

LATVIA: the Board of the LAA re-elected

On November 1, 2019, the Latvian Association of Insurers (LAA) held a meeting during which two members of the Association management board were re-elected for a term of two years, as well as future priorities of LAA activities agreed, as LAA announced on its website.

LATVIA: The average MTPL indemnity rose by 29% in three years

According to The Motor Insurers' Bureau of Latvia (LTAB), for the first half of 2019, the average MTPL indemnity was EUR 1,068, about 29% higher than the average MTPL claim from the first half of year 2016 (1H2016: EUR 826).

LATVIA: new liability limits for drone insurance

On August 13th, the Government of Latvia approved the draft over "unmanned aircrafts and other aircrafts" regulation, according to which all drones that weight over 250 grams (~0.55 lbs) are required to carry a civil liability insurance.