At the end of 2020, six insurance companies were operating in Latvia, as well as 11 branches of non-life insurance companies of Member States provided insurance services.
In 2020, EUR 549 million euro were written in premiums by the insurance market participants in Latvia, which was 1.8% down compared to the previous year. At the same time, EUR 341.8 million were paid in insurance claims, which was 6.6% less than in the previous year.
In the non-life insurance sector, EUR 410.3 million were written in premiums in Latvia in Latvia (including EUR 11.6 million were written by a branch of foreign insurer which ceased its activity in Q3 2020), the amount of premiums decreased by 4.9% compared to the previous year. The largest decrease in premiums was observed in assistance (travel) insurance – by 44.6% and motor third party liability (MTPL) insurance – by 17%, while the amount of health insurance and property insurance premiums slightly increased by 4.2% and 3%, respectively.
In the life insurance sector, EUR 138.7 million were written in premiums in Latvia in 2020, with premiums increasing by 8.4% compared to 2019. This was mainly due to the steady increase (59%) in annuity insurance premiums written in 2020. Meanwhile, the amount of premiums written for other endowment life insurance products declined by 12.9%.
The amount of insurance premiums written against gross domestic product accounted for 1.9% in Latvia in 2020, while in 2019 it was 1.8%. Whereas on average in Europe in 2019, the proportion was 7.1%. On the other hand, the difference was even clearer comparing how much euro each resident of the country spent on insurance on average: it was EUR 288 in 2020 and EUR 291 in 2019 in Latvia, while on average in Europe – EUR 2085 in 2019. These premiums included also the resident savings paid in life insurance contracts, and the difference between the indicator in Latvia and on average in Europe was the most significant in particular in the life insurance; it was about 17 times smaller in Latvia.
In 2020, EUR 253.7 million were paid in claims on non-life insurance in Latvia, an 11% decrease compared to the previous year. The amount of claims paid declined significantly in property insurance – by 40.3% and assistance (travel) insurance by 14.6%, but claims paid increased on road transport insurance (Kasko) by 4.8% and health insurance by 2.5%.
In 2020, EUR 88.1 million were paid in claims on life insurance in Latvia, an 8.9% increase compared to 2019. The amount of claims paid on annuity insurance grew strikingly – by 64.8% and unit-linked life insurance by 41.1%.
In 2020, non-life insurance companies earned EUR 50.1 million, with profits surging by 117.2% compared with the previous period. Whereas life insurance companies earned EUR 3.3 million in 2020, with profits falling by 58% compared with the previous year.
The solvency ratio for insurance companies remained stable above the minimum requirement and reached 173.5% at the end of 2020 (the minimum rate set at 100%), which was 12.0 percentage points more than at the end of 2019.
Infographic on the insurance sector indicators is available at: https://www.fktk.lv/wp-content/uploads/2021/04/Insurance_infographics_2020_ENG.pdf
Head of Communications and Financial Literacy Division
Financial and Capital Market Commission
Phone: +371 67774808