Baltic, Financial Services, Insurance, Latvia

One of the most important developments this year has been the acquisition of insurance companies Baltikums and BTA Baltic Insurance Company by Vienna Insurance Group AG. While it did not have a major influence on the market, as competition on Latvian market is very tough, the arrival of Vienna Insurance Group is certainly in clients' interests - expansion of regional or global players into the local market can be seen as a guarantee for the stability and sustainability of the insurance industry.

At the same time, the Insurers' Association would like local companies to become stronger, as they can better adapt to the local market and find a specific niche, said the association's head Janis Abasins.

The Insurers' Association also points out that, following reorganization of Gjensidige companies in the Baltic countries, Gjensidige's head offices will be in Lithuania, not in Latvia. There is a lesson in that for the supervisory authorities and the insurance industry on the whole, believes the association.

The association also expects consolidation to continue among insurance brokers.

At the moment, there are eight insurance companies and thirteen insurance companies' branches operating in Latvia, as well as 81 insurance brokers.