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Wednesday 21.08.2019 | Name days: Linda, Janīna
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Volume of insurance claims paid in first six months reaches 196 million euros

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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.


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