Life Insurance in Latvia, Key Trends and Opportunities to 2017

Published: Apr, 2014 | Pages: 234 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)


Synopsis
The report provides in-depth market analysis, information and insights into the Latvian life insurance segment, including:
The Latvian life insurance segment's growth prospects by life insurance categories 
Key trends and drivers for the life insurance segment 
The various distribution channels in the Latvian life insurance segment
The detailed competitive landscape in the life insurance segment in Latvia
Detailed regulatory policies of the Latvian insurance industry
A description of the life reinsurance segment in Latvia
Porter's Five Forces analysis of the life insurance segment
A benchmarking section on the Latvian life insurance segment in comparison with other countries in the Central and Eastern European region 

Summary
During the review period (2008-2012), Latvia's insurance industry was affected by the global financial crisis. The overall insurance industry in Latvia recorded a decline in written premium at a review-period compound annual growth rate (CAGR) of 3.1%. The life insurance segment registered a positive CAGR of 6.8% during the review period . This was due to growth in private consumption, investments and exports. Life insurance is expected to benefit from an increase in the Latvian population's disposable income and growth in life expectancy over the forecast period. The growing economy is anticipated to have a positive impact on the segment by creating favorable economic conditions for growth. The Latvian life segment is expected to grow at a CAGR of 11.6% over the forecast period (2012-2017). 
Scope
This report provides a comprehensive analysis of the life insurance segment in Latvia:
It provides historical values for the Latvian life insurance segment for the report's 2008-2012 review period and forecast figures for the 2012-2017 forecast period.
It offers a detailed analysis of the key categories in the Latvian life insurance segment, along with market forecasts until 2017.
It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions.
It analyses the various distribution channels for life insurance products in Latvia.
Using Porter's industry-standard "Five Forces" analysis, it details the competitive landscape in Latvia for the life insurance business.
It provides a detailed analysis of the reinsurance segment in Latvia and its growth prospects.
It profiles the top life insurance companies in Latvia and outlines the key regulations affecting them. 
Reason To Buy
 Make strategic business decisions using in depth historic and forecast market data related to the Latvian life insurance segment and each category within it
Understand the demand-side dynamics, key market trends and growth opportunities within the Latvian life insurance segment
Assess the competitive dynamics in the life insurance segment, along with the reinsurance segment
Identify the growth opportunities and market dynamics within key product categories
Gain insights into key regulations governing the Latvian insurance industry and its impact on companies and the market's future 
Key Highlights
 The endowment category led the life segment with 62.5% of the segment's total written premium in 2012.
The life segment is expected to adopt better practices as major foreign insurers such as Swedbank Life, SEB Life, Sampo Group's Mandatum Life and SEB Life establish presences.
Latvia's growing economy is anticipated to positively impact the life segment as private consumption, investments and exports increase.
The segment is expected to benefit from an increase in disposable income and life expectancy, although falling employment and a declining population will limit growth in the segment.
At the end of 2012, a total of nine domestic companies operated in the Latvian insurance industry, of which two were life insurers and the remaining seven were involved in non-life business.

 1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Regiol Market Dymics
3.1 Overview
3.1.1 Market trends
3.1.2 Market size
4 Life Insurance - Regiol Benchmarking
4.1 Scale and Penetration
4.1.1 Total gross written premium
4.1.2 Premium per capita
4.1.3 Life insurance penetration
4.2 Growth
4.2.1 Gross written premium
4.2.2 Gross written premium per capita
4.3 Efficiency and Risk
4.3.1 Loss ratio
4.3.2 Combined ratio
4.3.3 Incurred losses per capita
4.3.4 Incurred losses as a percentage of GDP
4.4 Distribution Channels
4.4.1 Direct marketing
4.4.2 Insurance brokers
4.4.3 Bancassurance
4.4.4 Agencies
5 Latvian Insurance Industry Attractiveness
5.1 Insurance Industry Size, 2008-2017
5.2 Key Industry Trends and Drivers
5.3 Challenges
5.4 Recent Market Developments
6 Life Insurance Outlook
6.1 Consumer Segmentation and Buying Behaviour
6.2 Product and Marketing Strategies
6.3 Life Insurance Growth Prospects by Category
6.3.1 Individual life insurance
6.3.2 Individual endowment insurance
6.3.3 Individual unit-linked insurance
6.3.4 Individual term life insurance
6.4 Life Insurance Growth Prospects by Product Type
6.4.1 Individual single-premium policies
6.4.2 Individual non-single-premium policies
7 Alysis by Distribution Channels
7.1 Direct Marketing
7.2 Bancassurance
7.3 Agencies
7.4 E-commerce
7.5 Brokers
7.6 Other Channels
8 Porter's Five Forces Alysis - Latvian Life Insurance
8.1 Bargaining Power of Suppliers: Low to Medium
8.2 Bargaining Power of Buyers: Medium
8.3 Barriers to Entry: Low to Medium
8.4 Intensity of Rivalry: High
8.5 Threat of Substitutes: Medium to Low
9 Reinsurance Growth Dymics and Challenges
9.1 Reinsurance Segment Size, 2008-2017
9.2 Reinsurance Segment Size by Type of Insurance, 2008-2017
10 Governce, Risk and Compliance
10.1 Legislation Overview and Historical Evolution
10.2 Regulations by Type of Insurance
10.2.1 Life insurance regulations
10.2.2 Property insurance regulations
10.2.3 Motor insurance regulations
10.2.4 Marine, aviation and transit insurance regulations
10.2.5 Persol accident and health insurance regulations
10.3 Compulsory Insurance
10.3.1 Motor third-party liability insurance
10.3.2 Air carriers and aircraft operators insurance
10.4 Supervision and Control
10.4.1 Intertiol Association of Insurance Supervisors (IAIS)
10.4.2 European Insurance and Occupatiol Pensions Authority (EIOPA)
10.4.3 Fincial and Capital Market Commission (FCMC)
10.5 Non-Admitted Insurance Regulations
10.5.1 Overview
10.5.2 Intermediaries
10.5.3 Market practices
10.5.4 Fines and pelties
10.6 Company Registration and Operations
10.6.1 Types of insurance organization
10.6.2 Establishing a local company
10.6.3 Foreign ownership
10.6.4 Types of license
10.6.5 Capital requirements
10.6.6 Solvency margins
10.6.7 Reserve requirements
10.6.8 Investment regulations
10.6.9 Statutory return requirements
10.6.10 Fee structure
10.7 Taxation
10.7.1 Insurance premium or policy taxation
10.7.2 Withholding taxes on premium paid overseas
10.7.3 Corporate tax
10.7.4 VAT
10.7.5 Captives
10.8 Legal System
10.8.1 Introduction
10.8.2 Access to court
10.8.3 Altertive dispute resolution (ADR)
11 Competitive Landscape and Strategic Insights
11.1 Overview
11.2 Leading Companies in the Latvian Life Insurance Segment
11.3 Citadele Life - Company Overview
11.3.1 Citadele Life - key facts
11.4 Compensa Life Vien Insurance Group SE - Company Overview
11.4.1 Compensa Life Vien Insurance Group SE - key facts
11.4.2 Compensa Life Vien Insurance Group SE - key fincials
11.5 Ergo Latvija Dz?v?ba - Company Overview
11.5.1 Ergo Latvija Dz?v?ba - key facts
11.5.2 Ergo Latvija Dz?v?ba - key fincials
11.6 Mandatum Life Insurance Baltic SE - Company Overview
11.6.1 Mandatum Life Insurance Baltic SE - key facts
11.6.2 Mandatum Life Insurance Baltic SE - key fincials
11.7 MetLife Amplico - Company Overview
11.7.1 MetLife Amplico - key facts
11.7.2 MetLife Amplico - key fincials
11.8 SEB Dz?v?bas ApdroSin?Sa - Company Overview
11.8.1 SEB Dz?v?bas ApdroSin?Sa - key facts
11.8.2 SEB Dz?v?bas ApdroSin?Sa - key fincials
11.9 Swedbank Life Insurance SE - Company Overview
11.9.1 Swedbank Life Insurance SE - key facts
11.9.2 Swedbank Life Insurance SE - key fincials
12 Business Environment and Country Risk
12.1 Business Confidence
12.1.1 Market capitalization trend - Riga Stock Exchange, Latvia
12.2 Economic Performance
12.2.1 GDP at constant prices (US$)
12.2.2 GDP per capita at constant prices (US$)
12.2.3 GDP at current prices (US$)
12.2.4 GDP per capita at current prices (US$)
12.2.5 GDP by key segments
12.2.6 Agriculture, hunting, forestry and fishing net output at current prices (US$)
12.2.7 Agriculture, hunting, forestry and fishing's net output at current prices as a percentage of GDP
12.2.8 Manufacturing net output at current prices (US$)
12.2.9 Manufacturing net output at current prices as a percentage of GDP
12.2.10 Mining, manufacturing and utilities at current prices (US$)
12.2.11 Mining, manufacturing and utilities at current prices, as a percentage of GDP
12.2.12 Construction net output at current prices (US$)
12.2.13 Construction net output at current prices as a percentage of GDP
12.2.14 Inflation rate
12.2.15 Exports as a percentage of GDP
12.2.16 Imports as a percentage of GDP
12.2.17 Merchandise exports growth
12.2.18 Merchandise imports growth
12.2.19 Annual average exchange rate LVL-US$
12.3 Infrastructure
12.3.1 Commercial vehicles exports - total value
12.3.2 Commercial vehicles imports - total value
12.3.3 Automotive exports - total value
12.3.4 Automotive imports - total value
12.3.5 Total internet subscribers
12.4 Labor Force
12.4.1 Labor force
12.4.2 Unemployment rate
12.5 Demographics
12.5.1 Gross tiol disposable income (US$)
12.5.2 Total population
12.5.3 Urban and rural populations
12.5.4 Age distribution of the total population
13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric's Services
13.5 Disclaimer


List of Tables
Table 1: Insurance Industry Definitions
Table 2: Latvian Insurance - Overall Written Premium by Segment (LVL Million), 2008-2012
Table 3: Latvian Insurance - Overall Written Premium by Segment (US$ Million), 2008-2012
Table 4: Latvian Insurance - Overall Written Premium by Segment (LVL Million), 2012-2017
Table 5: Latvian Insurance - Overall Written Premium by Segment (US$ Million), 2012-2017
Table 6: Latvian Insurance - Segmentation (% Share), 2008-2017
Table 7: Latvian Life Insurance - Written Premium by Category (LVL Million), 2008-2012
Table 8: Latvian Life Insurance - Written Premium by Category (US$ Million), 2008-2012
Table 9: Latvian Life Insurance - Written Premium by Category (LVL Million), 2012-2017
Table 10: Latvian Life Insurance - Written Premium by Category (US$ Million), 2012-2017
Table 11: Latvian Life Insurance - Earned Premium (LVL Million), 2008-2012
Table 12: Latvian Life Insurance - Earned Premium (LVL Million), 2012-2017
Table 13: Latvian Life Insurance - Sum Assured (LVL Billion), 2008-2012
Table 14: Latvian Life Insurance - Sum Assured (LVL Billion), 2012-2017
Table 15: Latvian Life Insurance - Paid Claims (LVL Million), 2008-2012
Table 16: Latvian Life Insurance - Paid Claims (LVL Million), 2012-2017
Table 17: Latvian Life Insurance - Incurred Loss (LVL Million), 2008-2012
Table 18: Latvian Life Insurance - Incurred Loss (LVL Million), 2012-2017
Table 19: Latvian Life Insurance - Loss Ratio (%), 2008-2012
Table 20: Latvian Life Insurance - Loss Ratio (%), 2012-2017
Table 21: Latvian Life Insurance - Commissions and Expenses (LVL Million), 2008-2012
Table 22: Latvian Life Insurance - Commissions and Expenses (LVL Million), 2012-2017
Table 23: Latvian Life Insurance - Combined Ratio (%), 2008-2012
Table 24: Latvian Life Insurance - Combined Ratio (%), 2012-2017
Table 25: Latvian Life Insurance - Frauds and Crimes (LVL Million), 2008-2012
Table 26: Latvian Life Insurance - Frauds and Crimes (LVL Million), 2012-2017
Table 27: Latvian Life Insurance - Total Assets (LVL Million), 2008-2012
Table 28: Latvian Life Insurance - Total Assets (LVL Million), 2012-2017
Table 29: Latvian Life Insurance - Total Investment Income (LVL Million), 2008-2012
Table 30: Latvian Life Insurance - Total Investment Income (LVL Million), 2012-2017
Table 31: Latvian Life Insurance - Retentions (LVL Million), 2008-2012
Table 32: Latvian Life Insurance - Retentions (LVL Million), 2012-2017
Table 33: Latvian Individual Life Insurance - Number of Active Policies (Thousand), 2008-2012
Table 34: Latvian Individual Life Insurance - Number of Active Policies, 2012-2017
Table 35: Latvian Individual Life Insurance - Written Premium (LVL Million), 2008-2012
Table 36: Latvian Individual Life Insurance - Written Premium (LVL Million), 2012-2017
Table 37: Latvian Individual Endowment Insurance - Number of Active Policies (Thousand), 2008-2012
Table 38: Latvian Individual Endowment Insurance - Number of Active Policies (Thousand), 2012-2017
Table 39: Latvian Individual Endowment Insurance - Written Premium (LVL Million), 2008-2012
Table 40: Latvian Individual Endowment Insurance - Written Premium (LVL Million), 2012-2017
Table 41: Latvian Individual Unit-Linked Insurance - Number of Active Policies (Thousand), 2008-2012
Table 42: Latvian Individual Unit-Linked Insurance - Number of Active Policies (Thousand), 2012-2017
Table 43: Latvian Individual Unit-Linked Insurance - Written Premium (LVL Million), 2008-2012
Table 44: Latvian Individual Unit-Linked Insurance - Written Premium (LVL Million), 2012-2017
Table 45: Latvian Individual Term life Insurance - Number of Active Policies (Thousand), 2008-2012
Table 46: Latvian Individual Term Life Insurance - Number of Active Policies (Thousand), 2012-2017
Table 47: Latvian Individual Term Life Insurance - Written Premium (LVL Million), 2008-2012
Table 48: Latvian Individual Term Life Insurance - Written Premium (LVL Million), 2012-2017
Table 49: Latvian Individual Single-Premium Insurance - Number of Active Policies (Thousand), 2008-2012
Table 50: Latvian Individual Single-Premium Insurance - Number of Active Policies (Thousand), 2012-2017
Table 51: Latvian Individual Single-Premium Insurance - Written Premium (LVL Million), 2008-2012
Table 52: Latvian Individual Single-Premium Insurance - Written Premium (LVL Million), 2012-2017
Table 53: Latvian Individual Non-Single-Premium Insurance - Number of Active Policies (Thousand), 2008-2012
Table 54: Latvian Individual Non-Single-Premium Insurance - Number of Active Policies (Thousand), 2012-2017
Table 55: Latvian Individual Non-Single-Premium Insurance - Written Premium (LVL Million), 2008-2012
Table 56: Latvian Individual Non-Single-Premium Insurance - Written Premium (LVL Million), 2012-2017
Table 57: Latvian Life Insurance - Direct Marketing Commission Paid (LVL Million), 2008-2012
Table 58: Latvian Life Insurance - Direct Marketing Commission Paid (LVL Million), 2012-2017
Table 59: Latvian Life Insurance - New Business Written Premium Through Direct Marketing (LVL Million), 2008-2012
Table 60: Latvian Life Insurance - New Business Written Premium Through Direct Marketing (LVL Million), 2012-2017
Table 61: Latvian Life Insurance - New Policies Sold Through Direct Marketing (Thousand), 2008-2012
Table 62: Latvian Life Insurance - New Policies Sold Through Direct Marketing (Thousand), 2012-2017
Table 63: Latvian Life Insurance - Number of Direct Marketing Distributors, 2008-2012
Table 64: Latvian Life Insurance - Number of Direct Marketing Distributors, 2012-2017
Table 65: Latvian Life Insurance - Bancassurance Commission Paid (LVL Million), 2008-2012
Table 66: Latvian Life Insurance - Bancassurance Commission Paid (LVL Million), 2012-2017
Table 67: Latvian Life Insurance - New Business Written Premium Through Bancassurance (LVL Million), 2008-2012
Table 68: Latvian Life Insurance - New Business Written Premium Through Bancassurance (LVL Million), 2012-2017
Table 69: Latvian Life Insurance - New Policies Sold Through Bancassurance (Thousand), 2008-2012
Table 70: Latvian Life Insurance - New Policies Sold Through Bancassurance (Thousand), 2012-2017
Table 71: Latvian Life Insurance - Number of Bancassurance Distributors, 2008-2012
Table 72: Latvian Life Insurance - Number of Bancassurance Distributors, 2012-2017
Table 73: Latvian Life Insurance - Commission Paid to Agencies (LVL Million), 2008-2012
Table 74: Latvian Life Insurance - Commission Paid to Agencies (LVL Million), 2012-2017
Table 75: Latvian Life Insurance - New Business Written Premium Through Agencies (LVL Million), 2008-2012
Table 76: Latvian Life Insurance - New Business Written Premium Through Agencies (LVL Million), 2012-2017
Table 77: Latvian Life Insurance - New Policies Sold Through Agencies (Thousand), 2008-2012
Table 78: Latvian Life Insurance - New Policies Sold Through Agencies (Thousand), 2012-2017
Table 79: Latvian Life Insurance - Number of Agencies, 2008-2012
Table 80: Latvian Life Insurance - Number of Agencies, 2012-2017
Table 81: Latvian Life Insurance - E-Commerce Commission Paid (LVL Million), 2008-2012
Table 82: Latvian Life Insurance - E-Commerce Commission Paid (LVL Million), 2012-2017
Table 83: Latvian Life Insurance - New Business Written Premium Through E-Commerce (LVL Million), 2008-2012
Table 84: Latvian Life Insurance - New Business Written Premium Through E-Commerce (LVL Million), 2012-2017
Table 85: Latvian Life Insurance - New Policies Sold Through E-Commerce (Thousand), 2008-2012
Table 86: Latvian Life Insurance - New Policies Sold Through E-Commerce (Thousand), 2012-2017
Table 87: Latvian Life Insurance - Number of E-Commerce Distributors, 2008-2012
Table 88: Latvian Life Insurance - Number of E-Commerce Distributors, 2012-2017
Table 89: Latvian Life Insurance - Commission Paid to Brokers (LVL Million), 2008-2012
Table 90: Latvian Life Insurance - Commission Paid to Brokers (LVL Million), 2012-2017
Table 91: Latvian Life Insurance - New Business Written Premium Through Brokers (LVL Million), 2008-2012
Table 92: Latvian Life Insurance - New Business Written Premium Through Brokers (LVL Million), 2012-2017
Table 93: Latvian Life Insurance - New Policies Sold Through Brokers (Thousand), 2008-2012
Table 94: Latvian Life Insurance - New Policies Sold Through Brokers (Thousand), 2012-2017
Table 95: Latvian Life Insurance - Number of Brokers, 2008-2012
Table 96: Latvian Life Insurance - Number of Brokers, 2012-2017
Table 97: Latvian Life Insurance - Commission Paid to Other Channels (LVL Million), 2008-2012
Table 98: Latvian Life Insurance - Commission Paid to Other Channels (LVL Million), 2012-2017
Table 99: Latvian Life Insurance - New Business Written Premium Through Other Channels (LVL Million), 2008-2012
Table 100: Latvian Life Insurance - New Business Written Premium Through Other Channels (LVL Million), 2012-2017
Table 101: Latvian Life Insurance - New Policies Sold Through Other Channels (Thousand), 2008-2012
Table 102: Latvian Life Insurance - New Policies Sold Through Other Channels (Thousand), 2012-2017
Table 103: Latvian Life Insurance - Number of Distributors in Other Channels, 2008-2012
Table 104: Latvian Life Insurance - Number of Distributors in Other Channels, 2012-2017
Table 105: Reinsurance in Latvia by Category (LVL Million), 2008-2012
Table 106: Reinsurance in Latvia by Category (US$ Million), 2008-2012
Table 107: Reinsurance in Latvia by Category (LVL Million), 2012-2017
Table 108: Reinsurance in Latvia by Category (US$ Million), 2012-2017
Table 109: Latvian Premium Ceded to Reinsurance by Type of Insurance (LVL Million), 2008-2012
Table 110: Latvian Premium Ceded to Reinsurance by Type of Insurance (US$ Million), 2008-2012
Table 111: Latvian Premium Ceded to Reinsurance by Type of Insurance (LVL Million), 2012-2017
Table 112: Latvian Premium Ceded to Reinsurance by Type of Insurance (US$ Million), 2012-2017
Table 113: Latvian Life Insurance - Percentage of Reinsurance Ceded (%), 2008-2012
Table 114: Latvian Life Insurance - Percentage of Reinsurance Ceded (%), 2012-2017
Table 115: Latvia - Life Insurance Regulatory Framework
Table 116: Latvia - Property Insurance Regulatory Framework
Table 117: Latvia - Motor Insurance Regulatory Framework
Table 118: Latvia - Minimum Cover for Aircraft Third-Party Liability Per Accident Per Aircraft
Table 119: Latvia - Corporate Tax Rates for the Financial Year 2013
Table 120: Total Number of Insurance Companies In Latvian Insurance Industry, 2008-2012
Table 121: Latvian Life Insurance - 2012
Table 122: Citadele Life, Key Facts
Table 123: Compensa Life Vienna Insurance Group SE, Key Facts
Table 124: Compensa Life Vienna Insurance Group SE, Key Financials (LVL Million), 2008-2012
Table 125: Ergo Latvija Dz?v?ba, Key Facts
Table 126: Ergo Latvija Dz?v?ba, Key Financials (LVL Million), 2008-2012
Table 127: Mandatum Life Insurance Baltic SE, Key Facts
Table 128: Mandatum Life Insurance Baltic SE, Key Financials (LVL Million), 2008-2012
Table 129: MetLife Amplico, Key Facts
Table 130: MetLife Amplico, Key Financials (LVL Million), 2008-2012
Table 131: SEB Dz?v?bas apdro�in?�ana, Key Facts
Table 132: SEB Dz?v?bas Apdro�in?�ana, Key Financials (LVL Million) 2008-2012
Table 133: Swedbank Life Insurance SE, Key Facts
Table 134: Swedbank Life Insurance SE, Key Financials (LVL Million) 2008-2012