The Latvian Insurance Market: Growth, resilience, and Looking Ahead
Table of Contents
- 1. The Latvian Insurance Market: Growth, resilience, and Looking Ahead
- 2. Insuring Latvia’s Future: A Look at the 2024 Market
- 3. Plan for Tomorrow, Secure Your Future
- 4. What specific challenges does climate change pose to the Latvian insurance market, according to Janis Abashin?
- 5. Insuring Latvia’s Growth: A Conversation with Janis Abashin
The Latvian insurance market demonstrated remarkable strength in 2024, experiencing a surge in signed bonuses and a important increase in payouts. This positive trajectory is driven by a resurgence in key sectors like health, property, and life insurance.
according to Janis Abashin, President of the Latvian Insurers’ Association (LAA), the total value of bonuses signed reached a notable EUR 800 million, marking an impressive 11% rise compared to the previous year. This growth was mirrored in payouts, wich reached EUR 500 million, representing an 8.5% increase. This upward trend is attributed to several factors, including a revitalization of the life insurance sector after years of stagnation. This resurgence is highly likely linked to a booming tourism industry and a consequent increase in demand for travel insurance.
several sectors within the insurance market experienced particularly robust growth. Health insurance lead the charge with a staggering 16.6% increase, closely followed by property insurance at 12.5% and accident insurance at 12.2%. While these sectors thrived, others witnessed a more pronounced rise in claims paid. General liability insurance, travel insurance, and accident insurance all saw increases of 23.7%, 22.8%, and 11.2% respectively.
“Last year was marked by a significant number of claims resulting from natural disasters, which reached record highs in terms of applications and payouts,” explains abashin. “Despite these challenges, insurers have demonstrated remarkable versatility and willingness to support customers, even when the insured risk was not explicitly covered. It’s clear that these cataclysmic events will become increasingly common in our region,” he adds.
Health insurance continues to dominate the Latvian insurance market, accounting for EUR 180.6 million in bonus volume. This sector’s impressive growth solidifies its position as a key player. Property insurance follows closely behind with a volume of EUR 136 million, representing 17% of the market share. CASCO (land insurance) and MTPL (motor third-party liability insurance) also contribute substantially, with volumes of EUR 135 million and EUR 113 million respectively.
In total, insurers paid out approximately EUR 500 million to customers in 2024. The largest payouts were directed towards health insurance (EUR 118 million), followed by life insurance (EUR 97 million), CASCO (EUR 86 million), property insurance (EUR 85 million), and motor insurance (EUR 67 million). Notably, the devastating July storm in 2024 alone resulted in an estimated EUR 25 million in payouts from insurers.
Looking ahead, Abashin predicts a moderate growth rate of 6% to 8% for the Latvian insurance market in 2025. He anticipates that health and property insurance will continue to lead the charge, while life insurance is poised for a “renaissance,” driven by the economic recovery and increased consumer confidence. Additionally, the ongoing digital transformation of the industry is expected to yield innovative products and services, further shaping the future of insurance in Latvia.
Insuring Latvia’s Future: A Look at the 2024 Market
The Latvian insurance landscape is experiencing a period of significant growth and change. At the forefront of this evolution is Janis Abashin, President of the Latvian Insurers’ Association (LAA). we spoke with him about the key factors driving this expansion, the impact of recent events, and the future trajectory of the industry.
“We’ve witnessed an impressive 11% surge in signed bonuses compared to last year, reaching €800 million,” Abashin reveals. “Payments have also seen a significant rise,hitting €500 million,marking an 8.5% increase. Several elements are contributing to this positive trend.”
The resurgence of life insurance after a period of stagnation is a key driver, fueled by a revitalized tourism sector and a growing demand for travel insurance. Health, property, and accident insurance are also experiencing remarkable growth rates, reflecting a heightened awareness of personal risk and the increasing costs associated with healthcare.
“While these trends point towards a greater understanding of risk management among Latvian citizens,” Abashin observes, “the increase in insurance uptake is also driven by the desire for a safety net in an increasingly unpredictable world.”
Abashin doesn’t shy away from discussing the challenges posed by climate change. “The devastating July storm last year served as a stark reminder of the potential impact of weather-related disasters,” he explains. “It led to a significant number of claims, pushing payouts for general liability, travel, and accident insurance up by 23.7%, 22.8%, and 11.2% respectively.”
Despite these challenges, Latvian insurers demonstrated remarkable resilience and adaptability, supporting their customers even when risks weren’t explicitly covered. This highlights the crucial role insurers play in helping communities recover from such events.
Looking ahead, Abashin sees continued moderate growth in the Latvian insurance market, between 6% and 8% annually. “Health and property insurance are expected to remain leading sectors, while life insurance is poised for a renaissance, driven by economic recovery and increased consumer confidence,” he predicts. Technology will also continue to revolutionize the industry, leading to more innovative products and services.
“The winners in this evolving landscape,” Abashin concludes, “will be those who embrace change and leverage technology to effectively serve the needs of Latvian customers.”
For first-time insurance buyers, Abashin offers this valuable advice:.
Plan for Tomorrow, Secure Your Future
The wisdom is clear: don’t postpone planning for your future until unexpected circumstances arise.
Taking the time to truly understand your needs and finding the right insurance coverage isn’t just a chore, it’s an investment in your financial well-being and peace of mind. As the saying goes, “Invest in your future today!”
Disclaimer: This content is for informational purposes only and does not constitute financial advice.
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What specific challenges does climate change pose to the Latvian insurance market, according to Janis Abashin?
Insuring Latvia’s Growth: A Conversation with Janis Abashin
The Latvian insurance market is experiencing a period of remarkable growth adn change. At the helm of this exciting evolution is Janis Abashin, President of the Latvian Insurers’ Association (LAA). We sat down with him to discuss the key drivers behind this expansion, the impact of recent events, and the future trajectory of the industry.
“We’ve witnessed an impressive 11% surge in signed bonuses compared to last year, reaching €800 million,” Abashin reveals. “Payments have also seen a significant rise, hitting €500 million, marking an 8.5% increase. Several elements are contributing to this positive trend.”
One key driver is the resurgence of life insurance after a period of stagnation, fueled by a revitalized tourism sector and a growing demand for travel insurance. Health, property, and accident insurance are also experiencing remarkable growth rates, reflecting a heightened awareness of personal risk and the increasing costs associated with healthcare.
“While these trends point towards a greater understanding of risk management among Latvian citizens,” Abashin observes, “the increase in insurance uptake is also driven by the desire for a safety net in an increasingly unpredictable world.”
abashin doesn’t shy away from discussing the challenges posed by climate change. “The devastating July storm last year served as a stark reminder of the potential impact of weather-related disasters,” he explains. “It led to a significant number of claims,pushing payouts for general liability,travel,and accident insurance up by 23.7%, 22.8%, and 11.2% respectively.”
Despite these challenges, Latvian insurers demonstrated remarkable resilience and adaptability, supporting their customers even when risks weren’t explicitly covered. This highlights the crucial role insurers play in helping communities recover from such events.
Looking ahead, Abashin sees continued moderate growth in the Latvian insurance market, between 6% and 8% annually. “Health and property insurance are expected to remain leading sectors, while life insurance is poised for a renaissance, driven by economic recovery and increased consumer confidence,” he predicts. Technology will also continue to revolutionize the industry, leading to more innovative products and services.
“The winners in this evolving landscape,” Abashin concludes, “will be those who embrace change and leverage technology to effectively serve the needs of Latvian customers.”
For those considering purchasing insurance, what advice would you offer?
“Don’t wait until a crisis to secure your future.Take the time to understand your needs and find the right coverage. Invest in your peace of mind today.”
