Life insurance - Latvia

Latvia

The Life insurance market market in Latvia is projected to reach a market size (gross written premium) of US$421.70m in 2024.
It is estimated that the average spending per capita in the Life insurance market market will amount to US$233.00 in the same year.
Furthermore, it is expected that the gross written premium will exhibit an annual growth rate (CAGR 2024-2028) of 7.93%.
This growth will result in a market volume of US$572.30m by 2028.
In global comparison, it is noteworthy that the United States is expected to generate the highest gross written premium in the Life insurance market market, amounting to US$1,271.0bn in 2024.
In Latvia, the life insurance market is experiencing a shift towards more flexible and customizable policies to meet the diverse needs of individuals and families.

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Analyst Opinion

Over the past few years, the Life insurance market in Latvia has shown steady growth and development. Customer preferences in the Latvian Life insurance market are shifting towards more comprehensive coverage options that provide not only financial security but also investment opportunities. Customers are increasingly looking for policies that offer a wide range of benefits and flexibility to adapt to their evolving needs over time. Trends in the market indicate a rise in demand for unit-linked life insurance products in Latvia. These products combine life insurance coverage with investment options, allowing policyholders to potentially grow their wealth over the long term. This trend reflects a growing interest among Latvian consumers in securing their financial future while also seeking opportunities for wealth accumulation. Local special circumstances, such as the relatively low penetration rate of life insurance in Latvia compared to other European countries, present both challenges and opportunities for insurers operating in the market. Insurers must navigate the landscape of a relatively untapped market while also educating consumers about the benefits of life insurance and addressing any misconceptions or barriers to purchasing coverage. Underlying macroeconomic factors, including Latvia's stable economic growth and increasing disposable income levels, contribute to the positive development of the Life insurance market in the country. As the economy continues to expand and individuals have more financial resources at their disposal, the demand for life insurance products is likely to grow further. Overall, the Life insurance market in Latvia is poised for continued growth and evolution as insurers cater to changing customer preferences, leverage market trends towards investment-linked products, navigate unique local circumstances, and benefit from supportive macroeconomic conditions.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.