Competition will remain tough in all segments on the Baltic insurance markets in 2016, preventing significant rises in the insurance premiums level. As a result, the Latvian market is expected to maintain the 7% growth pace experienced in 2015, informs LETA quoting Ingrida KIRSE, ERGO Board member in the Baltic states.

Still, "if prices go up in other sectors, such as car maintenance or health care, it will affect the prices of related insurance services", KIRSE told journalists. She also described the current consolidation trend in the regional insurance markets as positive, considering that in the long term only the strong and reliable companies will remain on the playing field.

In fact, good macroeconomic results, increasing FDI amounts and household revenues are encouraging optimistic expectations also fir the insurance industry's evolution.

According to the Financial and Capital Market Commission - FKTK data, the Latvian insurance market totaled EUR 396 million at the end of September 2015, increasing by 4.6% compared with the same period last year. At the same time, Latvian insurers paid EUR 225.2 million in claims (9.5% more y-o-y). By the end of November, market data showed an increasing growth pace which seems to indicate an annual increase in GWP of about 7%.

At the Baltic region's level, GWP went up by 5.74% in 3Q2015, to EUR 1.126 billion, the highest increase in premiums being recorded in Lithuania (6.91%).