BALTA: growth in non-life insurance market

BALTA: growth in non-life insurance market exceeds GDP growth indexes

In spite of slow non-life insurance market growth in Latvia, which had reached a mere 6% in the first three quarters, BALTA insurance association concluded the first nine months of 2016 with profits of EUR 3.2 million.

According to the company’s representatives, the company’s growth has reached 14% in comparison with the same period of 2015.

BALTA chairman Bogdan Benczak notes that growth of the non-life insurance market has exceeded GDP growth indexes for this year. This provided stable development of the industry and secured positive influence on the company’s general financial indexes.

Commenting on the industry’s results, Benczak said: «We welcome growth in the property insurance market. This means people have become more informed about the importance of insurance. At the same time, it should be said that competition in Latvia’s non-life insurance industry is considerable and every insurer carefully considers making the most convenient and beneficial offers for their customers. Customers, on the other hand, should look at the price and included risks when looking for insurance services.»

According to information from the company, positive tendencies are noticed in OCTA, KASKO and property insurance segments – growth indexes in all of them have reached 5%. According to BALTA, growth results are associated with the increase in the number of vehicles and decline in insurers’ profitability, which is affected by the increase in the number of traffic accidents, increase in the average size of insurance claims and continued increase in the number of car thefts. Growth in property insurance segment is associated with the increase in the number of clients in this segment.


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