Latvia insurance market
The Latvian insurance market (total portfolio of Latvia-registered insurers, including business written both in Latvia and abroad) grew by an estimated 9.87% in 2025 to almost EUR 1.35 billion, according to National Bank of Latvia data reported via xprimm. Within this total, the domestic Latvia-only segment tracked by the Latvian Insurers Association (LAA) reached EUR 808 million, up 4.5% year-on-year, a more moderate pace than in prior years as inflationary pressure on premiums eased. Health insurance remained the largest domestic line at EUR 201 million (25% of the domestic market), followed by property insurance (EUR 145 million, 18%), motor own-damage/KASKO (EUR 138 million, 17%), life insurance (EUR 127 million, 16%) and compulsory motor third-party liability/OCTA (EUR 106 million, 13%), with OCTA premiums continuing to fall due to price competition even as claims costs rose. Domestic gross claims paid totaled EUR 476 million in 2025, down 1.4% on 2024, mainly reflecting fewer major property losses than the storm- and flood-hit prior year. A new market entrant strengthened competition in the land-transport insurance segment during 2025. As of the 2025 annual report, seven Latvia-registered insurance undertakings (five non-life/composite and two life insurers) and eleven branches of EU insurers (seven non-life and four life) operated in the market, supervised by Latvijas Banka, which has overseen the sector since absorbing the former Financial and Capital Market Commission (FKTK) on 1 January 2023. Regulatory developments in 2025 extended compulsory MTPL (OCTA) coverage to e-scooters and other registered micromobility vehicles from 1 July 2025, implementing EU Motor Insurance Directive 2021/2118, while amendments to the Insurance Contract Law and the Insurance Distribution Law effective 12 December 2025 tightened plain-language and risk-disclosure requirements for policy documents.
Country market
Available products
Market overview
Market numbers
Total premiums
EUR 1.35bn
Annual growth
Insurance penetration
2.8%
Active insurers
7
Population
1,845,096
Total premiums (EUR bn)
- 20251.4 EUR bn
- 20241.2 EUR bn
- 20231.1 EUR bn
- 20220.7 EUR bn
- 20210.6 EUR bn
- 20200.6 EUR bn
2020 — 0.6 EUR bn
2021 — 0.6 EUR bn
2022 — 0.7 EUR bn
2023 — 1.1 EUR bn
2024 — 1.2 EUR bn
2025 — 1.4 EUR bn
Annual growth (%)
Non-life share / Life share
Non-life share
82.0%Life share
18.0%Insurance penetration (%)
Market data by year
Insurer directory
Active insurers
Insurers currently active in Latvia.
AAS BALTA
Riga, Latvia
Insurance Joint Stock Company BALTA (AAS BALTA) is a Latvian-registered non-life insurer headquartered in Riga.
EUR 198.2m
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.
Balcia Insurance SE
Riga, Latvia
Balcia Insurance SE is a Latvia-based non-life insurance company, established in Latvia in 1993 under the name Baltijas Transporta apdrošināšana, later known as brand BTA, before its Baltic portfolio was split off in 2015 and the remaining entity was rebranded as Balcia Insurance SE. Unlike the separate BTA Baltic Insurance Company (which is owned by Vienna Insurance Group), Balcia Insurance SE is a privately owned Latvian insurer offering motor, property, travel, accident and liability insurance products via an online subscription model across Latvia and several other European markets.
AAS Baltijas Apdrošināšanas Nams
Riga, Latvia
BAN is a Latvian non-life insurance joint-stock company that has operated on the Latvian market since 2000, offering motor, property, travel, health, accident, liability, cargo, construction and guarantee insurance to individuals and businesses.
AS Sincera Insurance
Compensa Vienna Insurance Group ADB Latvijas filiāle
Riga, Latvia
Compensa is an insurance brand in Latvia operated by two Vienna Insurance Group subsidiaries: Compensa Vienna Insurance Group ADB Latvia Branch (non-life) and Compensa Life Vienna Insurance Group SE Latvia Branch (life). Since February 2026 both brands operate under one unified website, compensa.lv, offering motor, property, travel, health, life, and accident insurance to private individuals and businesses.
ERGO Insurance SE Latvijas filiāle
Riga, Latvia (Skanstes iela 50, Riga, LV-1013)
ERGO is one of the leading insurance groups in Latvia and the Baltics, operating through two branches: 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. In January 2026, ERGO completed the acquisition of ADB Gjensidige in the Baltics, and the two brands are being merged during 2026.
ADB Gjensidige Latvijas filiāle
Riga, Latvia
ADB "Gjensidige" Latvia branch began operating in the Latvian market in 1994 as AS Parekss apdrošināšanas kompānija, later renamed after being acquired by Norway's Gjensidige Forsikring in 2006. It is a leading non-life insurer offering a full range of insurance products for private and corporate customers. On 2 January 2026, ERGO International AG (Germany) completed the acquisition of ADB Gjensidige across the Baltics, and the Gjensidige brand is being phased out as the entity is merged into ERGO; the gjensidige.lv website is scheduled to be discontinued from the end of October 2026.
If P&C Insurance AS Latvijas filiāle
Riga, Latvia
If P&C Insurance AS Latvia Branch is the Latvian branch of If P&C Insurance AS, registered in Estonia, offering a comprehensive range of non-life insurance products for private individuals and businesses.
Swedbank P&C Insurance AS Latvijas filiāle
Riga, Latvia (branch of an insurer domiciled in Tallinn, Estonia)
Insurance in Latvia under the Swedbank brand is provided by Swedbank P&C Insurance AS (non-life) and Swedbank Life Insurance SE (life), both Estonian-domiciled companies operating in Latvia through local branches, with Swedbank AS and Swedbank Līzings SIA acting as insurance agents.
Market notes
Important news
Aug 23, 2026
Record-Breaking Summer Storm Triggers Thousands of Insurance Claims
Latvia's strongest summer storm since at least 1966 struck overnight on 23 August 2026, severely affecting Riga and other regions. Within days insurers received nearly 4,800 claims, mostly for property and vehicle damage, with reserved compensation reaching EUR 8.05 million and rising; the government did not rule out seeking EU disaster assistance.
Why it matters
One of the largest natural-catastrophe claims events in the Latvian market's recent history, comparable in scale to the July 2024 floods, again testing insurer claims-handling capacity and reinforcing regulatory focus on clear risk disclosure in property policies.
Jan 2, 2026
ERGO Completes Acquisition of ADB Gjensidige Baltic Operations Including Latvia Branch
ERGO International AG (Munich Re subsidiary) closed the acquisition of ADB Gjensidige, including its Latvia and Estonia branches; Gjensidige Forsikring ASA received sale proceeds of approximately EUR 99 million. All required regulatory approvals in Lithuania, Latvia and Estonia were obtained on schedule. ERGO becomes the third-largest insurer in the Baltics by premium volume, with ADB Gjensidige previously ranked sixth-largest non-life insurer locally; legal merger and full brand integration are planned by the 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 regional 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 requiring insurers to clearly list both covered and excluded risks in policies. Plain-language contract-term requirements for individual policyholders apply from 2027.
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.
Oct 30, 2025
LAA Shortens Ombudsman Complaint Timelines and Raises Compensation Limits
The Latvian Insurers Association's member assembly approved reforms to the LAA Ombudsman regulations, cutting the maximum complaint review time from three months to 50 days, introducing online payment of security deposits, and raising the case-value ceilings the Ombudsman can review (e.g. life insurance from EUR 10,000 to EUR 30,000; property from EUR 200,000 to EUR 300,000).
Why it matters
A record 86 complaints were filed with the Ombudsman in 2025, prompting the industry to modernise its out-of-court dispute resolution service to reduce waiting times and expand its scope, improving consumer access to redress.
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, handles cross-border Green Card matters, and since 1 July 2025 oversees OCTA compliance for e-scooters and other registered micromobility vehicles following an extension of mandatory coverage.
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. Publishes annual and periodic market statistics for its member insurers, which in 2025 recorded EUR 808 million in Latvia-only gross written premiums. 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, amended 14.11.2024 (in force from 10.12.2024, with e-scooter coverage phased in from 01.07.2025)
Compulsory Motor Third-Party Liability Insurance Law (OCTA)
Mandates compulsory civil liability insurance for land vehicle owners using public roads in Latvia. The amendments adopted 14 November 2024 and in force from 10 December 2024 transposed EU Motor Insurance Directive 2021/2118, extending the OCTA obligation to all registered vehicles, including those not currently participating in traffic, and adding e-scooters (mandatory from 1 July 2025) and other registered micromobility devices to the list of vehicles requiring coverage. The law establishes the Latvian Motor Insurers Bureau (LTAB) and the Guarantee Fund for uninsured claims.
Insurance and Reinsurance Distribution Law (Apdrošināšanas un pārapdrošināšanas izplatīšanas likums), transposing EU IDD Directive 2016/97, amended with effect from 12.12.2025
Insurance and Reinsurance Distribution Law
Regulates the distribution of insurance and reinsurance products in Latvia, implementing the EU Insurance Distribution Directive (IDD). Amendments effective 12 December 2025 reinforce the obligation for distributors to provide clients with understandable, complexity-appropriate product information via the standardised Insurance Product Information Document (IPID), in paper or durable electronic form, alongside registration and conduct-of-business requirements for brokers registered with Latvijas Banka.
Insurance Contract Law (Apdrošināšanas līguma likums), likumi.lv id 299053, amended with effect from 12.12.2025
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. Amendments effective 12 December 2025 require policies to list all insured and excluded risks in plain, understandable language, place the burden on insurers to prove that product information was delivered to clients, and from 1 July 2026 require policies to explicitly mark covered versus excluded risks.
EU cross-border access
EU cross-border insurers
Nissan International Insurance Ltd
Freedom of Services
Home country: Malta
Supervisor: MFSA (Malta)
Provides extended-warranty/GAP-style motor insurance products sold through Nissan dealerships in Latvia.
Coface SA
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Credit insurance provider distributing in Latvia via FoS through broker channels.
Europ Assistance SA
Freedom of Services
Home country: France
Supervisor: ACPR (France)
Assistance and travel insurance distributed through bancassurance and card 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
Share by channel- 41%Insurance and Reinsurance Brokers
- IIZI Brokers
- Marsh Latvia
- Aon Latvia
- Balcia brokeri
- 33%DirectInsurer own channels
- Balta
- BTA Baltic Insurance Company
- ERGO Insurance SE
- If P&C Insurance AS
- 16%Insurance AgentsExcluding banks
- Registered agents of Balta
- Registered agents of BTA
- Registered agents of Compensa
- 8%BancassuranceCredit institutions as agents
- Swedbank
- SEB banka
- Luminor Bank
- 2%Digital / OnlineFully automated
- OCTAmāts
- Balta.lv
- ERGO.lv
Some companies appear in more than one channel.
Consumer rights
How to file a complaint- 1
Submit a written complaint directly to the insurer or insurance distributor, asking it to explain the reasons for any refusal. 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 for disputes about claim decisions or distribution services in life, property, motor, or accident insurance. Since late 2025 the review period has been shortened to 50 days and compensation limits raised (e.g. life insurance to EUR 30,000, property to EUR 300,000); the decision remains 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, the Insurance Contract Law, or distribution rules. Latvijas Banka does not resolve civil disputes but can impose supervisory measures and, in some cases, fines.
- 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.
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.
2016-2022
Solvency II Era, Regulatory Merger and Post-Pandemic Growth
Post-COVID recovery drove sharp premium growth; in 2022 total premiums reached approximately EUR 680 million, up 15.9% year on year. Inflation boosted both premiums and claims across all lines.
2023-2026
Market Maturity, Consumer Law Reform, New Entrant and M&A Activity
FKTK's supervisory functions were merged into Latvijas Banka on 1 January 2023, consolidating financial sector oversight under the central bank. Total GWP reached approximately EUR 1.23 billion in 2024, and in 2025 total-portfolio premiums grew to EUR 1.35 billion (+9.87%) while Latvia-only premiums reached EUR 808 million (+4.5%), with health insurance the largest segment. July 2024 flooding triggered a legislative reform (adopted November 2025) strengthening consumer protection. Locally-owned Sincera Insurance entered the market in April 2025, ERGO completed its acquisition of Gjensidige's Baltic operations in January 2026, and a record-breaking August 2026 storm generated thousands of new claims.
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.
lv
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.
lv
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.
Market notes
FAQ
Market notes
Sources
Last updated: Sep 25, 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.