Market Insights Financial Insurances Non-life insurances

Motor Vehicle Insurance - Latvia

Latvia

The Motor Vehicle Insurance market market in Latvia is expected to reach a projected market size (gross written premium) of US$0.35bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$194.60 in 2024.
Over the period of 2024 to 2028, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of -1.46%, resulting in a market volume of US$0.33bn by 2028.
In comparison to other countries worldwide, the United States is projected to generate the highest gross written premium of US$1,338.0bn in 2024.
Motor Vehicle Insurance in Latvia has witnessed a surge in demand due to the rise in car ownership and stricter regulations.

Market

Region

Region comparison

Currency

Analyst Opinion

The Motor Vehicle Insurance market in Latvia is experiencing steady growth and development in recent years. Customer preferences in the Motor Vehicle Insurance market in Latvia are influenced by factors such as the desire for comprehensive coverage, affordable premiums, and efficient claims processing. Customers in Latvia tend to prioritize insurance packages that offer a wide range of benefits and protections for their vehicles, including coverage for accidents, theft, and natural disasters. Trends in the market indicate a shift towards digitalization and online insurance services, with more customers opting to purchase and manage their motor vehicle insurance policies through digital platforms. This trend is driven by the convenience and accessibility of online insurance services, as well as the growing preference for contactless transactions. Local special circumstances in Latvia, such as the relatively high rate of motor vehicle ownership and the increasing number of road accidents, contribute to the growth of the Motor Vehicle Insurance market. The need for mandatory third-party liability insurance for all vehicles further drives the demand for motor vehicle insurance in the country. Underlying macroeconomic factors, including the overall economic stability and disposable income levels in Latvia, play a significant role in shaping the Motor Vehicle Insurance market. As the economy continues to grow and consumer purchasing power increases, more individuals are able to afford motor vehicle insurance, leading to a larger customer base for insurance providers in the country. Additionally, regulatory changes and government initiatives aimed at promoting road safety and insurance coverage also impact the dynamics of the Motor Vehicle Insurance market in Latvia.

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.