Latvian Insurance Market in 2025 – Stable Growth and a Stronger Focus on the Client
- Guntis Zoldners
- Mar 3
- 7 min read
For a company director or the person responsible for insurance, it is important to keep track of industry trends. Why? Because changes in the insurance market directly affect policy prices, claims availability, and your company’s risk management.
Last year, in 2025, the Latvian insurance market continued to grow, reaching EUR 808 million in written premiums, which is 4.5% more than in 2024. This means insurers collected more premiums overall and the industry expanded. Moderate growth signals a stable market. Insurers are able to cover risks and continue investing in new services, but there is no longer a sharp surge in prices.
At the same time, the total amount of claims paid out decreased slightly. In 2025, insurers paid EUR 476 million to clients, 1.4% less than the year before. This decline was mainly due to fewer major catastrophes. In practice, this means there were fewer severe incidents and insurers had to pay fewer large emergency claims. As a result, you can expect relatively stable policy prices. If there is no significant increase in losses, insurers are under less pressure to raise premiums rapidly.
Health insurance dominates the market
Although the overall market is growing more slowly, not all types of insurance are developing at the same pace. Health insurance remains the leading segment. In 2025, written premiums in health insurance reached EUR 201 million, around 25% of the total market. In other words, one quarter of all insurance premiums are paid for health policies.
Why does this matter to you as an employer? The growing share of health insurance shows that companies and individuals are increasingly using health policies. This is partly because employees expect this benefit and partly because medical service costs are rising. If your company does not yet offer health insurance, these figures show it has become the norm in a competitive labour market.
If you already provide it, be prepared for possible price increases, as insurers are covering increasingly expensive medical services, which is reflected in premiums.
The largest insurance segments by written premiums in 2025
In addition to health insurance, the largest insurance segments by written premiums in 2025 were:
Property insurance:
Around EUR 145 million, 18% of the market. Nearly one fifth of the market relates to insuring real estate and movable property. For your business, this signals that companies are actively protecting their assets against fire, natural disasters, and other risks.
CASCO (auto insurance/KASKO):
Around EUR 138 million, 17% of the market. For fleet owners, this confirms that CASCO remains a significant expense. The size of the segment suggests strong competition among insurers, so it is worth comparing several offers, as you may find a more favourable policy.
Life insurance:
Around EUR 127 million, 16% of the market. After several years of stagnation, the life insurance segment is growing again, around 4% growth for the second year in a row. What does this mean? Both individuals and business owners are thinking more about long term financial security. If you are considering life or savings insurance, for example to protect your family or ensure business continuity, market interest is returning and offers are becoming more attractive.
Compulsory motor third party liability insurance (MTPL):
Around EUR 106 million, 13% of the market. The market share of MTPL has slightly decreased and, as we will see below, this segment has even experienced a decline. For a fleet manager, this may sound like good news, as MTPL prices have not generally increased. However, there are some important nuances.
Accident insurance grows fastest, MTPL declines
Looking at changes by insurance type, an interesting picture emerges. The fastest growth in 2025 was recorded in accident insurance, with 14% more written premiums than the year before. This is a significant increase and shows rising interest in protection against accidents.
How does this affect you? If you have not yet considered accident insurance for your employees or yourself, be aware that more companies and individuals are doing so. People value financial security in case of injuries or unexpected incidents, and insurers may be offering new or improved products in this segment. As demand grows, competition among insurers increases, which may mean broader choices and better tailored coverage options for you.
In contrast, the largest decline in premium volume was in the MTPL segment, approximately a 7% decrease compared to the previous year. This is surprising, as the number of vehicles on the roads continues to grow, yet insurers collected less in MTPL premiums than the year before.
What does this mean for your business with a fleet? In the short term, it may be good news. Due to strong competition, MTPL prices have slightly decreased or at least not increased. Many vehicle owners are looking for the best offers, and there is even a trend of purchasing MTPL policies for one month at a time, almost like a subscription. If your company uses seasonal equipment or vehicles irregularly, this approach could help you save by buying short term MTPL only when needed.
However, there is another side. While MTPL premium volumes declined, the total amount of claims paid in the MTPL segment increased by around 8%, and the average claim amount is rising by about EUR 200 per year. In other words, road accidents are becoming more expensive for insurers, even if you are currently paying slightly less for your policy.
In the long term, this situation is not sustainable. If the trend continues, MTPL prices may rise again. It is wise to focus on fleet safety, as fewer accidents mean fewer claims, and to communicate with your broker regularly in a competitive market.
Claims trends: fewer catastrophes, rising health costs
The positive news is that 2025 was relatively calm in terms of natural catastrophes. Unlike 2024, which saw severe summer storms and floods, last year insurers faced fewer extreme events. This is reflected in the statistics, as claims paid in property insurance decreased by 38%, the most significant drop among segments.
What does this mean for you? If your company owns buildings or other assets, it may seem that insurance was less needed compared to the previous year. However, the absence of major storms in 2025 is good fortune, not a guarantee for the future. The drop mainly shows that 2024 was an exceptional year for large claims. The lesson for business owners is to use calmer periods to review property coverage and ensure you are prepared if severe weather returns.
Overall, insurers paid around EUR 476 million in claims in 2025. Health insurance remains the leader in claims payouts, with approximately EUR 146 million, or 31% of all claims. This is not surprising, as health policies are actively used. Employees receive treatment, and insurers cover increasingly expensive procedures and medicines.
For you, this shows that a solid health insurance programme genuinely works. Employees use it and benefit from it. At the same time, with such high payout volumes, insurers must maintain financial balance, so future premium increases are possible.
Among other major claim segments were life insurance, around EUR 92 million, 19% of the market, and KASKO, around EUR 80 million, 17% of the market. Interestingly, general liability insurance saw a 40% increase in claims paid. This indicates that both businesses and individuals are more actively using liability coverage and are more aware of their right to seek compensation for damage.
If your company does not yet have liability insurance, consider the trend. As the number of claims increases, so does the likelihood that someone may bring a claim against your business.
Industry developments: clearer language and stronger client rights
The past year was not only about numbers. The industry has also worked to improve customer experience. Amendments to the Insurance Contract Law will come into force in 2026. These changes require that insurance terms for individuals be drafted in clear and simple language.
Policies and terms must clearly list insured and non insured risks, as well as all exclusions. In practical terms, it will become easier for you to understand what is covered and what is not. You will no longer need to navigate complex legal wording to grasp your policy conditions. However, it remains important to review coverage limits and exclusions carefully.
In addition, the process for handling customer complaints has been improved. The insurance ombudsman received a record number of complaints last year, 86 in total, showing that clients are more informed and willing to defend their rights. The industry has shortened complaint handling times, introduced more convenient digital solutions, and increased the compensation limit for disputes reviewed by the ombudsman.
For you, this means disputes can be resolved more efficiently and with greater transparency.
Looking ahead to 2026
Experts predict that the insurance market will continue moderate growth in 2026, likely in the range of 4 to 6%. Health and property insurance are expected to remain leading segments. Life insurance is forecast to continue growing as people increasingly focus on long term financial protection.
When planning next year’s budget, consider the possibility of moderate premium increases, particularly in health insurance, where medical costs are expected to keep rising. At the same time, digitalisation and new products may make insurance processes more convenient and flexible.
Overall, data from 2024 and 2025 show a stable and adaptable insurance sector. Growth continues, competition remains strong, and client rights are being strengthened. For company leaders and those responsible for insurance, this creates opportunities to secure better terms, improve risk management, and ensure that insurance continues to serve its main purpose: giving you peace of mind so you can focus on growing your business.
Source of data: Market statistics for 2024–2025 compiled by the Latvian Insurers Association.
Author: Guntis Zoldners
Insurance Broker | Founder of Perks, Riga Latvia
Working in the insurance industry since 2007 and setting a new standard for brokerages in Latvia, keeping client interests first - always.
+371 26 668 558
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