Latvia insurance market
The Latvian insurance market reached approximately EUR 1.23 billion in gross written premiums in 2024, a circa 10% increase year-on-year, continuing a strong multi-year growth trend. Non-life insurance accounts for around 81% of total GWP with motor and health insurance as the leading segments, while life insurance represents approximately 19%. Since 1 January 2023 the sector is supervised by Latvijas Banka, which absorbed the former Financial and Capital Market Commission (FKTK). At year-end 2023, six insurance undertakings were registered in Latvia alongside eleven branches of EU Member State insurers. The market is fully privatised and open to foreign participation. Health insurance and unit-linked life products have been key growth drivers, while MTPL premiums moderated in 2024 due to falling policy prices.
Generated by: Claude Sonnet 4.6
Reviewed by: Desislava Tsvetkova
Active insurers
6
Last reviewed
Apr 30, 2026
Country market
Available products
Insurer directory
Active insurers
Insurers currently active in Latvia.
Market share
AAS BTA Baltic Insurance Company
Riga, Latvia
BTA Baltic Insurance Company is the insurance market leader in the Baltic States, offering a broad range of non-life insurance products including motor, property, health, travel, and accident insurance to both private individuals and businesses.
AAS BALTA
Riga, Latvia
AAS BALTA is the leading non-life insurance company in Latvia with over 30 years of experience, serving more than 400,000 individual customers and 35,000 businesses through 42 branches across the country. It is part of PZU Group, one of the largest insurers in Central and Eastern Europe.
Balcia Insurance SE
Riga, Latvia
Balcia Insurance SE is a Latvia-based internationally recognised non-life insurance company, founded in 1993, offering motor, property, travel, accident and liability insurance products via an online subscription model across Latvia and several other European markets.
ERGO Insurance SE Latvijas filiāle
Riga, Latvia
ERGO is one of the leading insurance groups in Latvia and the Baltics, operating through two entities: ERGO Insurance SE Latvijas filiāle (non-life) and ERGO Life Insurance SE Latvijas filiāle (life and health). It offers a broad range of personal and commercial insurance products and is part of ERGO Group AG, a subsidiary of Munich Re.
If P&C Insurance AS Latvijas filiāle
Riga, Latvia
If P&C Insurance AS Latvia Branch is the Latvian operating branch of If P&C Insurance AS (registered in Estonia), offering a comprehensive range of non-life insurance products for private individuals and businesses. If is the largest property and casualty insurer in the Nordic and Baltic region and is part of the Finnish-listed Sampo Group.
Compensa Vienna Insurance Group ADB Latvijas filiāle
Riga, Latvia
AAS BALTA is the leading non-life insurance company in Latvia with over 30 years of experience, serving more than 400,000 individual customers and 35,000 businesses through 42 branches across the country. It is part of PZU Group, one of the largest insurers in Central and Eastern Europe.
Swedbank P&C Insurance AS Latvijas filiāle
Riga, Latvia
AAS BALTA is the leading non-life insurance company in Latvia with over 30 years of experience, serving more than 400,000 individual customers and 35,000 businesses through 42 branches across the country. It is part of PZU Group, one of the largest insurers in Central and Eastern Europe.
AAS Baltijas Apdrošināšanas Nams
Riga, Latvia
BTA Baltic Insurance Company is the insurance market leader in the Baltic States, offering a broad range of non-life insurance products including motor, property, health, travel, and accident insurance to both private individuals and businesses.
SEB Life and Pension Baltic SE
Riga, Latvia
If P&C Insurance AS Latvia Branch is the Latvian operating branch of If P&C Insurance AS (registered in Estonia), offering a comprehensive range of non-life insurance products for private individuals and businesses. If is the largest property and casualty insurer in the Nordic and Baltic region and is part of the Finnish-listed Sampo Group.
Compensa Life Vienna Insurance Group SE Latvijas filiāle
Riga, Latvia
AAS BALTA is the leading non-life insurance company in Latvia with over 30 years of experience, serving more than 400,000 individual customers and 35,000 businesses through 42 branches across the country. It is part of PZU Group, one of the largest insurers in Central and Eastern Europe.
ERGO Life Insurance SE Latvijas filiāle
Riga, Latvia
ERGO is one of the leading insurance groups in Latvia and the Baltics, operating through two entities: ERGO Insurance SE Latvijas filiāle (non-life) and ERGO Life Insurance SE Latvijas filiāle (life and health). It offers a broad range of personal and commercial insurance products and is part of ERGO Group AG, a subsidiary of Munich Re.
Swedbank Life Insurance SE Latvijas filiāle
Riga, Latvia
AAS BALTA is the leading non-life insurance company in Latvia with over 30 years of experience, serving more than 400,000 individual customers and 35,000 businesses through 42 branches across the country. It is part of PZU Group, one of the largest insurers in Central and Eastern Europe.
AAS CBL Life
Riga, Latvia
BTA Baltic Insurance Company is the insurance market leader in the Baltic States, offering a broad range of non-life insurance products including motor, property, health, travel, and accident insurance to both private individuals and businesses.
Nissan International Insurance Ltd
Riga, Latvia
AAS BALTA is the leading non-life insurance company in Latvia with over 30 years of experience, serving more than 400,000 individual customers and 35,000 businesses through 42 branches across the country. It is part of PZU Group, one of the largest insurers in Central and Eastern Europe.
Market overview
Market numbers
Total premiums
EUR 1.23bn
Annual growth
+10%
Insurance penetration
3%
Active insurers
6
Population
1,870,000
Total premiums (EUR bn)
Annual growth (%)
Non-life share / Life share
Market notes
Important news
Jan 2, 2026
ERGO Completes Acquisition of ADB Gjensidige Baltic Operations Including Latvia Branch
ERGO International AG (Munich Re subsidiary) completed the acquisition of ADB Gjensidige, including its Latvia branch, for approximately EUR 80 million. All Baltic regulatory approvals were met on schedule. ERGO becomes the third-largest insurer in the Baltics by premium volume and gains the second-largest sales network. Legal merger and full brand integration planned by end of 2026.
Why it matters
The largest Baltic insurance M&A transaction in recent years. Consolidates two non-life insurers with overlapping OCTA, KASKO, property and health books in Latvia, creating a stronger No. 3 player and intensifying competition with market leaders Balta and BTA.
Nov 27, 2025
Saeima Adopts Insurance Contract Law and Distribution Law Amendments to Strengthen Consumer Protection
Following the July 2024 floods, during which several insurers refused compensation citing contract interpretation, the Saeima adopted amendments to the Insurance Contract Law and Insurance Distribution Law. Insurers must now clearly list both covered and excluded risks in policies. Plain-language requirements apply from 2027 for common personal-lines products.
Why it matters
The most significant consumer-protection reform in Latvian insurance contract law in years. Reduces insurer discretion to deny claims on ambiguous contract wording and raises transparency standards across property, motor and accident insurance products.
Apr 30, 2025
Latvia Competition Council Approves ERGO Acquisition of ADB Gjensidige
Latvia's Competition Council (KP) cleared ERGO International AG's acquisition of ADB Gjensidige, concluding the merger would not create or strengthen dominance in any Latvian insurance market and would have no significant adverse effects on competition.
Why it matters
Removed the final material regulatory obstacle to the ERGO-Gjensidige combination in Latvia, enabling the deal to close. Signals that Latvian competition authorities accept moderate consolidation in the non-life segment.
Jan 23, 2025
Cabinet Regulation Amendments Revise OCTA Guarantee Fund Contribution Rates
Amendments to Cabinet Regulation No. 44 (effective 23 January 2025) changed the method by which insurers calculate quarterly contributions to the OCTA Guarantee Fund. Insurers now contribute 2.6% of premiums written in the quarter for claims coverage (excluding insolvency risk), replacing the previous flat amount system.
Why it matters
Aligns Guarantee Fund contributions more closely with actual premium volumes, improving fund adequacy and fairness between large and small OCTA writers. Affects all motor insurers' quarterly cash flows.
Nov 14, 2024
Amendments to Compulsory Motor Third-Party Liability Law Extend OCTA Obligation to All Registered Vehicles
The Saeima adopted OCTA law amendments transposing EU Motor Insurance Directive requirements, extending the mandatory insurance obligation to all registered vehicles including those kept in garages or not participating in traffic. The change sparked public debate; further clarifying amendments were announced by parliament members. Entered into force on 10 December 2024.
Why it matters
Expands the OCTA policyholder base and aligns Latvia with EU Motor Insurance Directive. Creates short-term market confusion regarding which stored or inactive vehicles require coverage, but is expected to increase total OCTA premium volume.
Sep 23, 2024
Latvijas Banka Adopts New Insurance Licensing Regulations
Latvijas Banka issued Regulations No. 318 (23 September 2024) on obtaining insurance or reinsurance licences, certain permits, and information provision, replacing prior FKTK licensing rules. The update consolidates licensing procedures under Latvijas Banka's post-2023 regulatory framework.
Why it matters
Provides a single up-to-date regulatory document for insurance licensing under Latvijas Banka, replacing legacy FKTK rules. Affects all new market entrants and existing insurers applying for licence changes.
Apr 17, 2024
Latvijas Banka Issues New Complaint Handling Regulations for Insurance Distributors
Latvijas Banka issued Regulations No. 293 (effective 17 April 2024), replacing the 2020 FKTK rules on complaint handling by insurance and reinsurance distributors. The new rules set binding procedures for registering, analysing and responding to complaints and require distributors to exchange complaint data with Latvijas Banka.
Why it matters
Updates the consumer-complaint framework to reflect Latvijas Banka's takeover of FKTK functions. Strengthens regulator visibility over complaint trends and creates a more uniform, enforceable standard for distributor complaint management.
Regulation
Regulation
Latvijas Banka
Bank of Latvia (incorporating former Financial and Capital Market Commission)
Primary prudential and conduct supervisor of the insurance sector in Latvia since 1 January 2023, when it absorbed the Financial and Capital Market Commission (FKTK). Issues insurance licences, supervises solvency compliance under Solvency II, and maintains the register of insurers and insurance intermediaries.
https://www.bank.lvLTAB
Latvian Motor Insurers Bureau
Industry bureau that unites all insurers licensed to provide compulsory motor third-party liability insurance (OCTA/MTPL) in Latvia. Administers the Guarantee Fund for uninsured vehicle claims, maintains the centralised MTPL policy register and insurance history database, and handles cross-border Green Card matters.
https://www.ltab.lvLAA
Latvian Insurers Association
Industry association founded 12 August 1993 representing the common interests of insurers to promote the development of the Latvian insurance sector. Members include non-life and life insurers controlling over 99% of the Latvian insurance market. Also operates the independent Insurance Ombudsman service for consumer complaints.
https://www.laa.lvKey legislation
Key legislation
Insurance and Reinsurance Law (Apdrošināšanas un pārapdrošināšanas likums), adopted 18.06.2015, Latvijas Vēstnesis No. 124, 30.06.2015; likumi.lv id 274969
Insurance and Reinsurance Law
Primary framework law governing the licensing, establishment, capital requirements, management system, solvency (Solvency II implementation), and supervision of insurance and reinsurance undertakings registered in Latvia, including branches of EU and third-country insurers. Sets out the role of Latvijas Banka as licensing authority.
Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law (Sauszemes transportlīdzekļu īpašnieku civiltiesiskās atbildības obligātās apdrošināšanas likums), OCTA Law, in force from 01.05.2004
Compulsory Motor Third-Party Liability Insurance Law (OCTA)
Mandates compulsory civil liability insurance for all land vehicle owners using public roads in Latvia. Sets minimum liability limits (up to EUR 6,450,000 for personal injury and EUR 1,300,000 for property damage per insured event), establishes the Latvian Motor Insurers Bureau (LTAB), the Guarantee Fund for uninsured claims, and transposes EU Motor Insurance Directives.
Insurance and Reinsurance Distribution Law (Apdrošināšanas un pārapdrošināšanas izplatīšanas likums), transposing EU IDD Directive 2016/97
Insurance and Reinsurance Distribution Law
Regulates the distribution of insurance and reinsurance products in Latvia, implementing the EU Insurance Distribution Directive (IDD). Sets conduct-of-business requirements, registration obligations for insurance brokers in the register maintained by Latvijas Banka, professional qualification standards, and consumer protection rules including product oversight and governance requirements.
Insurance Contract Law (Apdrošināšanas līguma likums)
Insurance Contract Law
Governs the legal framework for insurance contracts in Latvia, including the rights and obligations of policyholders and insurers, disclosure requirements, and claims settlement procedures. Subject to proposed amendments by the Ministry of Economics following the July 2024 flood events to strengthen consumer protection.
EU cross-border access
EU cross-border insurers
Coface SA
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Credit insurance provider operating in Latvia via FoS; active in Latvian corporate credit insurance market.
Europ Assistance SA
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Assistance and travel insurance provider distributing products through brokers and bancassurance partners in Latvia.
AXA Partners SAS
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Assistance and travel insurance distributed via banking and card partners in Latvia under FoS.
Colonnade Insurance S.A.
Freedom of Services
Home country: Luxembourg
Supervisor: CAA (Luxembourg)
Specialty and commercial lines insurer active in Baltic markets via FoS.
Allianz Trade SE (formerly Euler Hermes)
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Trade credit insurance provider operating in Latvia via FoS through local broker network.
Distribution channels
Distribution channels
41%
Insurance and Reinsurance Brokers
33%
Direct (insurer own channels)
16%
Insurance Agents (excluding banks)
8%
Bancassurance (credit institutions as agents)
2%
Digital / Online (fully automated)
Consumer rights
Consumer rights
1
Submit a written complaint directly to the insurer or insurance distributor. For individual policyholders, the insurer must decide on the claim within 30 days of receiving all required documents.
2
If unsatisfied, submit a complaint to the LAA Ombudsman (Latvijas Apdrošinātāju asociācijas ombuds) for disputes about claim decisions on life, property, motor, or accident insurance. The decision is a recommendation only.
3
File a complaint with Latvijas Banka (the regulator) if you believe the insurer or distributor violated the Insurance and Reinsurance Law or the Insurance Contract Law. Latvijas Banka does not resolve civil disputes but can impose supervisory measures.
4
For OCTA-related disputes, contact the Motor Insurers' Bureau of Latvia (LTAB). For unfair contract terms, file with the Consumer Rights Protection Centre (PTAC). As a last resort, file a civil claim in court.
Contacts
+371 67022300
tel:+37167022300https://www.laa.lv/noderigi/kur-risinat-stridus/
https://www.laa.lv/noderigi/kur-risinat-stridus/
https://www.laa.lv/noderigi/kur-risinat-stridus/EU cross-border access
EU cross-border access
Latvia is an EU member state and fully applies the Solvency II single-licence principle. An insurer or reinsurer authorised in any EU/EEA state may operate in Latvia without a separate Latvian licence. Latvijas Banka (the national regulator) supervises consumer protection aspects (contract conclusion and distribution) for foreign-passported insurers operating in Latvia. Financial stability supervision remains with the home-state regulator.
EU Directive 2009/138/EC (Solvency II), EU Directive 2016/97 (IDD), Latvia Insurance and Reinsurance Law (Apdrošināšanas un pārapdrošināšanas likums), Latvia Insurance and Reinsurance Distribution Law
freedom of establishment
An EU/EEA insurer may open a branch in Latvia without obtaining a separate Latvian licence. The branch must have a physical client service centre. The home-state regulator notifies Latvijas Banka, which then supervises the branch for consumer-protection compliance (insurance contract conclusion and distribution rules). Prudential supervision remains with the home regulator.
freedom of services
An EU/EEA insurer may provide insurance services in Latvia without a physical presence, using the FoS passport. The insurer must not have a physical office in Latvia. Latvijas Banka supervises only consumer-protection aspects; the home-state regulator grants the authorisation and retains prudential oversight. The insurer must comply with Latvian general-good rules applicable to insurance contracts.
Market history
Market history
1990-1997
Post-Soviet Market Formation
After Latvia regained independence in 1990, the Soviet state insurance apparatus was reorganised and the first private insurance companies were established. Western-model insurers entered the market gradually. The compulsory OCTA motor liability system was introduced in 1997, establishing the Motor Insurers Bureau of Latvia (LTAB).
1998-2004
Regulatory Consolidation and EU Accession Preparation
The Financial and Capital Market Commission (FKTK) was established in 2001 to consolidate supervision of insurance, banking and capital markets. Latvia began aligning insurance legislation with EU directives ahead of EU accession in May 2004. Life insurance premiums declined sharply after 2000 when tax incentives were removed.
2005-2015
Growth, Crisis and Post-Crisis Restructuring
The pre-crisis credit boom drove strong growth in property and motor insurance. The 2008-2010 financial crisis caused a sharp market contraction. Recovery was gradual; Solvency II entered into force in January 2016, requiring Latvia's insurers to meet new capital and governance standards. Non-life premiums grew by 28.6% from 2010 to 2018.
2016-2022
Solvency II Era, Regulatory Merger and Post-Pandemic Growth
FKTK's supervisory functions were merged into Latvijas Banka on 1 January 2023, consolidating financial sector oversight under the central bank. Post-COVID recovery drove sharp premium growth; in 2022 total premiums reached EUR 680 million, up 15.9% year on year. Inflation boosted both premiums and claims across all lines.
2023-2025
Market Maturity, Consumer Law Reform and M&A Activity
Total GWP reached approximately EUR 1.23 billion in 2024 (up 10% year on year), with health insurance the fastest-growing segment. July 2024 flooding triggered legislative reform strengthening consumer protection in insurance contracts. ERGO completed the acquisition of Gjensidige's Baltic operations in January 2026, reshaping the competitive landscape.
Glossary
Glossary
lv
Apdrošināšana
Financial arrangement providing protection against specified risks in exchange for premium payments; defined under the Insurance and Reinsurance Law.
lv
Apdrošināšanas prēmija
The amount paid by the policyholder to the insurer in exchange for insurance coverage for a defined period and risk scope.
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Apdrošināšanas atlīdzība
Compensation paid by the insurer to the insured or beneficiary upon occurrence of a covered insured event.
lv
OCTA
Mandatory insurance covering civil liability of vehicle owners for bodily injury and property damage caused to third parties in road traffic accidents.
lv
KASKO
Voluntary insurance covering damage to the insured vehicle itself from accidents, theft, vandalism, and natural perils.
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Apdrošināšanas brokeris
An independent intermediary registered with Latvijas Banka who acts in the client's interest when arranging insurance, representing the client rather than any specific insurer.
lv
Apdrošināšanas aģents
An intermediary who distributes insurance on behalf of one or more specific insurers. In Latvia, agents may generally represent only one insurer or one group of non-competing insurers.
lv
Apdrošinājuma ņēmējs
The natural or legal person who concludes an insurance contract with the insurer and is obliged to pay the premium.
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Apdrošinātais
The person whose life, health, or property is covered under the insurance contract; may differ from the policyholder.
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Labuma guvējs
The person entitled to receive the insurance benefit upon the occurrence of the insured event, typically named in life insurance contracts.
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Pārapdrošināšana
Insurance purchased by an insurer from a reinsurer to transfer part of its risk exposure; governed by the Insurance and Reinsurance Law.
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Apdrošināšanas polise
The formal document evidencing the insurance contract, including the policy schedule, terms and conditions, and all approved amendments.
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Apdrošināšanas gadījums
The specific event or occurrence defined in the insurance contract whose realisation triggers the insurer's obligation to pay.
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Pašrisks
The portion of a loss that the insured bears themselves before the insurer's payment obligation is triggered; reduces premium cost.
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Bruto parakstītās prēmijas
Total premium income written by an insurer during a period before deducting reinsurance cessions; the primary market-size indicator.
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Maksātspējas kapitāla prasība
Under Solvency II, the risk-based capital amount an insurer must hold to absorb significant unexpected losses; calculated at a 99.5% confidence level over one year.
lv
Apdrošināšanas komersants
A joint-stock company, European company, or mutual insurance cooperative licensed by Latvijas Banka to carry on insurance business in Latvia.
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Apdrošināto aizsardzības fonds
A fund administered by Latvijas Banka that compensates policyholders if a Latvian-licensed insurer becomes insolvent and cannot meet its obligations.
Market notes
FAQ
How large is the Latvian insurance market?
In 2024, total gross written premiums reached approximately EUR 1.23 billion, up 10% year on year. Latvian-territory premiums account for about 67% of the total. In 2025, premiums grew a further 4.5% to EUR 808 million on a Latvia-only basis according to the Latvian Insurers Association.
Who regulates insurance in Latvia?
Latvijas Banka (the central bank) has regulated and supervised the insurance market since 1 January 2023, when it absorbed the former Financial and Capital Market Commission (FKTK). It licenses insurers, supervises solvency and market conduct, and handles regulatory complaints. Consumer contract disputes are handled separately by the LAA Ombudsman and courts.
Is motor third-party liability (OCTA) insurance compulsory in Latvia?
Yes. OCTA has been mandatory in Latvia since 1997. As of December 2024, following EU Motor Insurance Directive transposition, the obligation extends to all registered vehicles, including those not currently participating in traffic. Uninsured vehicle owners face administrative penalties.
How do I complain about an insurance claim decision?
First contact the insurer directly in writing; it must respond within 30 days. If unsatisfied, you can submit a complaint to the LAA Ombudsman (free, non-binding recommendation), contact Latvijas Banka for regulatory violations, or file a civil claim in court. For OCTA disputes, also contact LTAB.
Can EU insurers operate in Latvia without a Latvian licence?
Yes. Under Solvency II, an EU/EEA-authorised insurer can operate in Latvia either by opening a branch (Freedom of Establishment) or by providing services without a physical presence (Freedom of Services). In both cases the home-state regulator retains prudential supervision; Latvijas Banka supervises consumer-protection compliance only.
What are the main insurance lines in Latvia?
The largest segments are motor (OCTA and KASKO, around 32% of total premiums), health insurance (fastest-growing, about 15%), property insurance (around 16%), life insurance (approximately 14-19%), and accident insurance. Non-life premiums represent roughly 70-80% of total market volume.
What distribution channels are used in Latvia?
Insurance brokers are the leading channel with about 41% of premiums in 2023. Direct insurer sales account for about 33%, agents for about 16%, bancassurance for about 8%, and fully digital online sales for about 2%. Digital sales are growing but remain low overall, though OCTA has the highest digital share at around 38% of its segment.
What was the impact of the July 2024 floods on the insurance market?
By 30 July 2024, insurers had received nearly 3,500 claims, mostly for property damage (around 2,700 claims). Several insurers refused to pay compensation citing contract interpretation, triggering a regulatory response from Latvijas Banka and ultimately leading to the November 2025 Insurance Contract Law amendments requiring clear disclosure of covered and excluded risks.
How profitable is the Latvian insurance sector?
In 2024, all Latvian insurance companies combined reported total net profit of EUR 59.4 million, up 19% year on year. In 2025, property insurance claims fell 38% (fewer extreme weather events), supporting sector profitability. Health insurance remained the largest claims segment at around EUR 146 million in 2025.
Market notes
Sources
Last reviewed: Apr 30, 2026
- 01Latvijas Banka – Insurance Supervision
Official regulator; market statistics, supervisory actions, licensing register, regulatory publications.
- 02Latvijas Apdrošinātāju asociācija (LAA)
Industry association; market data, ombudsman service, press releases.
- 03Latvijas Transportlīdzekļu apdrošinātāju birojs (LTAB)
Motor insurers bureau; OCTA statistics, annual reports, Green Card system.
- 04Finanšu ministrija (Ministry of Finance)
Insurance and distribution law proposals, broker sector reform documents.
- 05Patērētāju tiesību aizsardzības centrs (PTAC)
Consumer rights enforcement authority; complaint submission, unfair contract terms.
- 06Ekonomikas ministrija (Ministry of Economics)
Insurance Contract Law and distribution law amendments; consumer protection proposals.
- 07Likumi.lv – Apdrošināšanas un pārapdrošināšanas likums
Official consolidated text of the Insurance and Reinsurance Law (primary legislation).
- 08Latvijas Vēstnesis (Official Gazette)
All enacted laws, regulations and official notices including insurance-related amendments.
- 09LV portāls – Insurance Distribution Statistics 2024
Official summary of 2023 distribution channel data published by Latvijas Banka.
- 10ERGO – Baltic Acquisition Completion Press Release
Official ERGO press release on completion of ADB Gjensidige acquisition (January 2026).
- 11