Latviski English По-русски
Wednesday 21.08.2019 | Name days: Linda, Janīna

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

Subsidies to controversial Riga transport company could increase by EUR 20 mln

Amid the criticism of the Riga municipal transport company Rīgas satiksme for its losses and their effect on the Latvian state budget, a plan has been voiced to increase its subsidies, now 120 million euros, by another 20 million euros, Latvian Radio reports.

Latvian Minister keeping adviser detained by corruption watchdog for now

Latvian Agriculture Minister Kaspars Gerhards will clarify the reason, why his advisor and the mayor of the city of Ogre, Egils Helmanis, has been detained by corruption investigators, to decide on keeping him in office.

Trump, Macron willing to readmit Russia to G7, despite Crimea annexation

The leaders of France and the United States have expressed their backing to readmitting Russia to the G7 conference of world powers in 2020, despite Ukraine’s Crimea still being held by Moscow, CNN reports.

Latvian excise tax income up by 8% in first half of 2018

The Latvian excise tax income in the first half of 2019 has been 521 million euros, –an increase by 39 million euros, or 8.1% – compared to the respective period last year, showed data by the Latvian State Revenue Service.

Latvian PM: Most of freely available 2020 budget funds already earmarked

Discussing the 2020 Latvian national budget, Latvian prime minister Krišjānis Kariņš pointed out that its fiscal space is limited by previous decisions and that the expected losses of the Riga transport company will not permit raising wages and pensions nationally.

Corruption watchdog detains Ogre city mayor Helmanis

The Latvian Corruption Prevention and Combating Bureau has on Wednesday detained the mayor of central Latvian city of Ogre, Egils Helmanis, according to LETA news agency.

New members to Freeport of Riga Authority elected, despite criticism

The Riga City Council elected to the Board of the Freeport of Riga Authority, mayor Oļegs Burovs and councilman Sandris Bergmanis, despite heavy criticism of the latter for incompetence and lack of vision.

Italy loses government, coalition of right-wing, anti-establishment parties collapses

Italy has lost its government with Prime Minister Giuseppe Conte announcing resignation after the right-wing League party pushed for no-confidence motion to its own government.

Kaljulaid opposed to Estonian minister after police chief scandal

Alleging that Estonian Interior Minister Mart Helme has violated the law by trying to sack top police chief, Estonian President Kersti Kaljulaid has stated that the minister has no place in the government.

Planned Latvian economic cases’ court conceptually backed by government

The plan by the Latvian Ministry of Justice to establish a court of economic cases has on Tuesday, August 20, been supported by the Latvian Cabinet of Ministers.

Riga deputy mayor posts go to Harmony and independent politician

In the Riga City Council, deputy mayors have been elected with one post going to Anna Vladova from Harmony and the other – to Vadims Baraņņiks from the group of independent councilmen.

Latvia charges energy company executives for attempted fraud

Two board members of Latvian power company SIA Rīgas enerģija have been charged in a criminal case for an attempt to acquire with deceit the rights to supply electricity as part of the mandatory procurement component programme.

Consumer protection: 34% of Latvians admit post-vacation financial difficulties

During vacation, 77% of Latvians spend more money than planned, but 34% admit having trouble making ends meet after vacation, according to a poll by the Latvian Consumer Protection Centre.

Firms like Riga transport company to be banned from working with losses, minister says

As the European Union’s statisticians have classified the Riga municipal transport company Rīgas satiksme in the debt of the national budget, it is planned in Latvia to prohibit such companies from working with losses, Latvian Finance Minister Jānis Reirs has told LNT 900 sekundes programme.

Minor dies in large fire in Latvia

An underage person has been found dead in a large fire in the Latvian region of Vidzeme, the Latvian Fire and Rescue Service has said. Person wascsaved from burning house in Liepāja.

UK aims to end free entry of EU citizens on October 31

UK to stop free migration from European Union member states to the country right after the likely no-deal Brexit on October 31, the British government has stated.

Riga city elects new mayor – Oļegs Burovs – and restores decade-old coalition

The Riga City Council has elected Oļegs Burovs as the new mayor, ending two months of political discussions and restoring the coalition that has ruled in the Latvian capital for ten years.

EU: Rīgas satiksme cuts Latvian budget fiscal room in 2020 by 72 mln EUR

The Riga city company Rīgas satiksme should, according to European Union criteria, be in included in the general government sector, thus it would cut the fiscal space of the 2020 Latvian state budget by 72 million euros, Finance Ministry stated.

Latvijas Krājbanka’s administrator recovered 542 thousand euros in July

The administrator of the insolvent Latvian bank Latvijas Krājbanka recovered 524 444 euros in July, which is by 75% more than a month earlier, according to the official gazette Latvijas Vēstnesis.

Latvian post-reform administrative centres to have 2 000 - 630 000 populations

After the planned administrative reform of Latvia, the population size of the administrative centres of the new municipalities is expected to vary from 2 000 to 632 000 people, according to a conceptual report by the Ministry of Environmental Protection and Regional Development.

A week of warm, but changing weather forecast for Latvia

Weather in Latvia this week is expected to be summer-like and warm, with rain expected on Thursday and Friday, according to the Latvian Environment, Geology and Meteorology Centre.

Kabul wedding terror attack committed by Islamic State, the group says

Responsibility for the terror attack in Afghanistan, where explosives killed 63 people. has been claimed by the Afghan branch of the Islamic State terrorist group.

British Gibraltar releases seized Iran oil tanker

An Iranian oil tanker detained by Gibraltar, part of the United Kingdom, has sailed away from port after being allowed to do so despite Washington’s call to detain it again.

BNN summary of the week: Latvia’s biggest budget; PNB Bank halts operations; Latvia sad with Latvia

Some positive news surfaced in Latvia this week – Prime Minister Krišjānis Kariņš announced that the country’s next budget will be the largest one yet and will exceed EUR 10 billion. In spite of this, however, financial difficulties have been observed – PNB Bank has ended up in a tight spot. The bank’s shortage of funds has forced Finance and Capital Market Commission to halt all of the bank’s financial operations.

Week in Lithuania: PM Skvernelis undergoes surgery, Nausėda meets Merkel, rebukes Latvia

Last week, President Gitanas Nausėda rejected the government’s candidate for EU judge, hints of big changes at Šiaulių Bankas ahead

Newest comments