Non-life insurances - Latvia

Latvia

The Non-life insurance market in Latvia is expected to reach a projected market size (gross written premium) of US$656.90m in 2024.
The average spending per capita in the Non-life insurance market is estimated to be US$362.90 in 2024.
It is anticipated that the gross written premium will experience an annual growth rate (CAGR 2024-2028) of 1.28%, leading to a market volume of US$691.10m by 2028.
In comparison to other countries worldwide, the United States is projected to generate the highest gross written premium of US$3,371.0bn in 2024.
The non-life insurance market in Latvia is experiencing a surge in demand due to increased awareness and adoption of insurance products among the population.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Latvia has been witnessing significant growth and development. Customer preferences in the Non-life insurance market in Latvia are shifting towards more comprehensive coverage options that provide a wide range of benefits and protection. Customers are increasingly looking for customized insurance solutions that cater to their specific needs and offer flexibility in terms of coverage and premiums. One of the prominent trends in the Non-life insurance market in Latvia is the increasing adoption of digital technologies and online platforms for purchasing insurance policies. Insurers are focusing on enhancing their digital capabilities to provide customers with a seamless and convenient insurance buying experience. This trend is driven by the growing tech-savvy population in Latvia and the increasing demand for quick and efficient insurance services. Local special circumstances in Latvia, such as the country's small market size and competitive landscape, are influencing the development of the Non-life insurance sector. Insurers in Latvia are constantly innovating and diversifying their product offerings to stay ahead in the market. Additionally, regulatory changes and government initiatives aimed at promoting transparency and consumer protection are shaping the dynamics of the Non-life insurance market in Latvia. Underlying macroeconomic factors, including the overall economic stability and growth in Latvia, are also playing a crucial role in driving the development of the Non-life insurance market. As the economy continues to expand, there is a growing awareness among individuals and businesses about the importance of having adequate insurance coverage to mitigate risks and uncertainties. This, in turn, is fueling the demand for Non-life insurance products in the country.

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.