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Wednesday 17.01.2018 | Name days: Tenis, Dravis
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Brokers: competition decline will continue increasing insurance prices

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe contract for the sale of Seesam Insurance shares to VIG Group marks continued decline of competition within Latvia’s insurance market, according to Professional Insurance Brokers Association (PIBA).

The association also notes that it is no secret that Interrisk, owned by VIG Group, will soon cease to exist as an independent unit and will instead join one of the largest insurance associations (also owned by VIG Group) – BTA Baltic.

Latvian Motor Insurers’ Bureau can continue talking about the losses OCTA industry in Latvia suffers every year, but the reality is that rapid price growth of OCTA commenced in 2017 shortly after major price rise period ended in Latvia. As a result of this period – VIG Group got its hands on three previously independent insurers. The merge between Balta and PZU concluded in the same period, comments PIBA chairperson Agris Auce.

He notes that, considering modest results of Seesam Insurance in Latvia and cautious growth, as well as the oligopolistic and closed nature of the Finnish insurance market, it is no surprise that Finnish insurers, not used to real competition, decided to leave this market.

PIBA representatives say that the departure of the Finnish group from the Baltic market will reduce the unhealthy influence of the Nordic insurance oligopoly on the Baltic market and attempts to combat brokers and thereby limit competition on the insurance market. «In general it is likely Latvian consumers will have to prepare for a gradual price rise. Insurance conditions will likely remain with a wide coverage for local consumers.»

«Because VIG Group owns three insurance companies in Latvia, and two more will be merged soon, it is unlikely Seesam Latvia will remain as an independent insurance organization,» the association emphasizes.

Ref: 225.109.109.4283


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  1. ZC says:

    What comes to sky rocketing prices of OCTA insurances, they should be much more related to driver but not certain brands of cars. Now it happens to be so that good drivers are sponsoring imbecile-drivers’s mistakes. Maybe also if catched of high over speed it would automatically affect to price of persons OCTA for next year as an example.

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