Latviski English По-русски
Wednesday 16.10.2019 | Name days: Daiga, Dinija

Volume of insurance claims paid in first six months reaches 196 million euros

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

In the first half-year of 2019, insurers in Latvia paid to their clients a total of EUR 195.6 million in the form of insurance claims, which is one-third below last year’s amount.

The biggest volume of claims paid and submitted was observed in property insurance. The number of signed bonuses was EUR 274.5 million in the first half-year of 2019. This is 7% more when compared to last year, according to data compiled by Latvian Association of Insurers.

The biggest form of insurance in the first half-year – with EUR 56.3 million in signed bonus amounts – is health insurance (8% increase when compared to the first half-year of 2018). Insurance claims in health insurance were paid in the amount of EUR 34.4 million, which is a 10% increase.

Life insurers take up 20% of the signed bonuses market. However, growth was only 6%. The reason for this was the tax reform, which had reduced companies’ desire to offer workers life insurance as part of motivation system. 18.6% of the market is held by MTPL (EUR 50.9 million), followed by CASCO (17.1% of the market and EUR 46.8 million paid), as well as property insurance (13.2% of the market and EUR 36.2 million paid).

A large number of claims was received in property insurance – 19% more when compared to the same period of 2018. «This is a very positive trend – when people take better care of their property by acquiring insurance. The rapidly growing volume of paid insurance claims for property insurance shows – it is worth it,» says LAA president Jānis Abāšins.

Over the half-year a total of EUR 50 million was paid in insurance claims, which is a 235% increase in comparison to the previous year.

The reason for the increase is associated with several major insurance claims paid in real estate sector. A notable increase of insurance claims (23%) in comparison to the previous year was also observed for life insurance, where EUR 39.1 million was paid to clients. Health insurance is third with EUR 34.4 million paid and 10% increase.

The Top 5 forms of insurance in Latvia insurance claim size-wise:

Health insurance – EUR 56.3 million (20.5% of the market, +8%);

Life insurance – EUR 54.8 million (20% of the market, +6%);

MTPL insurance EUR 50.9 million (18.6% of the market, -2%);

CASCO insurance – EUR 46.8 million (17.1% of the market, +8%);

Property insurance – EUR 36.2 million (13.2% of the market, +19%).

The Top 5 forms of insurance in Latvia based on paid insurance claims:

Property insurance – EUR 50 million (25.6% of the market, +235%);

Life insurance – EUR 39.1 million (20% of the market, +23%);

Health insurance – EUR 34.4 million (17.6% of the market, +10%);

MTPL – EUR 29.3 million (15% of the market, +5%);

CASCO – EUR 28.5 million (14.6% of the market, -2%)

Source of data: SKDS compiled data on operations of three risk insurance companies in Latvia (Balta, Baltic Insurance House and BTA Baltic) and six foreign risk insurance companies in Latvia (Compensa, ERGO, Gjensidige, If Insurance, Seesam, Swedbank P&C), as well as two life insurance companies (CBL Life and SEB Life Insurance) and four foreign life insurance companies in Latvia (Compensa Life, ERGO Life, Mandatum Life, Swedbank Life). Data from Motor Insurers’ Bureau of Latvia was used for MTPL insurance evaluation.

Leave a reply

Probing infections in Latvia, salmonella found in meat from Poland

As infection outbreaks in Latvia are under investigation, laboratory tests showed salmonella bacteria in Polish-origin poultry samples taken from SIA Gaļsaimnieks.

Germany to allow Huawei equipment on 5G networks

The Chinese tech giant Huawei will not be banned from the 5G mobile networks in Germany as Berlin stated it wants to create «a level playing field» for vendors.

OECD: Bribery prevention results in Latvia disproportionate to cross-border risks

Latvia’s results in fighting bribery are still disproportionate with the risks of cross-border bribery and money laundering the country is subjected to, says the Working Group on Bribery of the Organisation for Economic Co-operation and Development.

In pictures: Ukrainian President Zelenskiy in Latvia

Ukrainian President Volodymyr Zelenskiy and the Ukrainian first lady made an official visit to Latvia on Wednesday, October 16.

airBaltic not planning to cancel flights with Airbus A220

airBaltic does not plan to reduce its flights with the Airbus A220-300 plane, after Swiss International Air Lines decided to do this being concerned over the aircraft’s engine problems, according to a statement of the Latvian airline on social media.

PM Kariņš recommends spending confiscated EUR 29 mln as single investment

Latvian Prime Minister Krišjānis Kariņš has recommended the 29 million euros confiscated by the Riga Regional Court for being criminally-acquired to be spent on a one-off investment, according to an interview to LNT programme 900 sekundes.

Latvian security service develops terrorism financing prevention strategy

The Latvian State Security Service (VDD) has prepared its Strategy for the Prevention of Terrorism Financing 2019-2021 with its goal being improvements of the system of preventing such financing, developing Latvia’s abilities to fight such illegal attempts and to improve the country’s reputation in foreign financial markets.

Estonian President sends invitation to Russian President

Estonian head of state Kersti Kaljulaid has invited her Russian counterpart Vladimir Putin to visit the Baltic country during a gathering of Finno-Ugric peoples in 2020.

Riga transport company needs additional 2.9 million euros

Rīgas satiksme, the transport company of the Latvian capital, will request from the municipal budget an additional allocation of 2.9 million euros, said Rīgas satiksme’s council chairman in an interview with Latvijas radio.

Government decides: Latvia will have 39 municipalities

The Latvian government has backed the draft Law on Administrative Territories and Populated Places that sets forth cutting the number of municipalities in Latvia from 119 to 39.

Rail Baltica: In rebuilding of Riga Central Station deadlines and quality are key

In Rail Baltica, the new railway project, the rebuilding of the Riga Central Station is planned, where meeting deadlines and quality are key, said the head of Eiropas dzelzceļa līnijas, the company responsible for the project in Latvia, commenting on how the project could be affected by involved builders ReRe grupa being under the scrutiny of the Corruption Prevention and Combating Bureau and the Competition Council.

Deal or extension? Last day of Brexit talks on before decisive EU summit

The Brexit delegations from London and Brussels are on Wednesday, October 16, spending their last day of talks before a key European Union summit intended either to discuss a potential deal or to decide on an extension of the Brexit process.

Exclusive | Latvian MP: Top justice figures, Bičkovičs and Kalnmeiers, working like this in private sector, would be sacked long ago

The Moneyval report has told us not only that Latvia is unable to deal with financial crimes, but also that long court cases are under scrutiny. It is about the scale of money laundering – branding us a major power of money laundering. The expert committee also has questions: where are the guilty ones and where are the sentencing rulings? «The same Lembergs’ case; believe me, Moneyval is observing carefully, how it’s going forward,» MP Gatis Eglītis (NCP), the head of the Financial Sector Supervision Committee of Saeima Budget and Finance (Taxation), said in an interview with the BNN.

Latvian medical workers to hold unprecedented protests against funding cuts

Latvian Trade Union of Health and Social Care Workers has decided to hold protests it calls unprecedented against state budget plans that would result in reduced funding for health care, according to the LVSADA Council.

History repeating: Lemberg’s-linked medium recalls false news about Meroni

Once again, a medium linked to the criminally-accused Latvian politician Aivars Lembergs has been forced to admit its lies and to recall its unfounded claims directed at lawyer Rudolf Meroni. This time the recall has been published by Neatkarīgā Rīta Avīze daily.

Unity: Riga City Council tries to retain structure of despite liquidation

In the Riga City Council, opposition Unity faction fears a near-million increase of the municipality’s Public Relations Division could be coming in city budget effectively to transfer the structure of, the foundation up for liquidation.

Latvian minister: System wants its people as Prosecutor General, top court chairman

«There is information that the system prepares its heirs and wishes to appoint people close to it,» discussing reforms in the Latvian justice system, including the changing of the chairman of the Supreme Court and the Prosecutor General, has said the Latvian Justice Minister speaking to Latvijas Televīzija programme Rīta Panorāma.

Latvian coalition reaches deal to support changed administrative reform

Latvian government parties have agreed to support the country’s major administrative and territorial reform expanding the initial plan of cutting the number of municipalities in Latvia from 119 to 36.

Spain’s conviction of Catalan separatists sparks mass protests and clashes

The imprisonment of Catalan politicians and activists has sparked mass protests in the Spanish autonomous region leading to violent clashes with police and disruption of civil aviation. A total of 108 flights were cancelled on Monday

U.S. imposes sanctions on Turkey over incursion in Syria

U.S. President Donald Trump has stated he has issued an executive order to impose sanctions on Turkey’s officials and customs tariffs on steel imports from the country, which is continuing its military attack on Syria.

On safe side: Estonian tech minister changes Huawei to iPhone

Estonian Foreign Trade and Information Technology Minister, Kert Kingo, has changed her Huawei smartphone after criticism about alleged security issues with the device of the Chinese brand.

Ukraine's Zelensky to visit Latvia this week

Ukrainian President Volodymyr Zelenskiy will make a state visit to Latvia this week, the Chancery of the Latvian President informed.

Orbán’s party defeated in Budapest election

In the Hungarian municipal election, a rare win has been reached by opposition parties as they joined forces and overcame Budapest mayor István Tarlós from the ruling Fidesz party, led by Prime Minister Viktor Orbán.

Latvian city trio could retain special status after reform, minister says

As the massive Latvian administrative reform is to be discussed in government, its advocate, the Regional Development Minister, has suggested Liepāja, Rēzekne and Daugavpils could retain their special status thus increasing the number of prospective municipalities to 39.

Latvian budget to receive 20 million euros ruled to be criminally acquired

The Riga Regional Court has ruled that arrested 29 million euros have been acquired illegally and that they have to be transferred from a bank to the Latvian state budget, announced the Latvian Office of the Prosecutor General.