New Report Now Available: Latvia Insurance Report 2010

PRLog (Press Release) - Dec 26, 2009 -
The most striking change since the last report has been the rapid development of the now worldwide credit crisis and the subsequent recession following on from it. The Latvian general economy is already experiencing markedly negative year on year rates of growth. So, the very considerable macro-economic imbalances that developed in the preceding boom which were greater in Latvia than the other Baltic states, mean that Latvia looks destined for a very hard landing with as much as two years of negative growth. More generally it remains an emerging market and Europe in general faces a protracted period of negative and then low growth. Nonetheless, the following features which make Estonia attractive for its stability will also tend to insulate it from the more severe effects of this crisis. Over the longer term, the prospects for the Latvian insurance sector are dictated by a variety of factors - some good and some bad. On one hand, there is much to be positive about. The overall country risk compares quite favourably with that of other countries in Central and Eastern Europe and, indeed elsewhere. Demand for insurance - in both the non-life and the life segments - is booming and should grow at double-digit rates throughout the forecast period. Quite unlike, say, Poland or Lithuania, insurance is not dominated by a former state-owned monopoly. Indeed, a surprisingly large number of multi-national insurers (most - but not all - of whom are associated with financial services groups that have ambitions in Scandinavia and the Baltic States) have established or bought operations in Latvia or have, at least, set up a branch office in Riga. However, not all the insurers are subsidiaries of pan-European (or at least Scandinavian) giants. The nonlife (especially) but also the life segment includes local groups who do not have large foreign backers. This is important, because Latvia is headed for challenging economic times. Economic and monetary convergence with Euroland, to which the government of Latvia (as a full if new member state of the European Union) is committed, will require tough decisions. Until very recently these concerned how to deal with mounting inflationary pressures. Now Latvia seems destined to experience very severe deflationary pressures. Either way, it is reasonable to suggest that the competitive landscape will - over the forecast period - change in two ways. First, it is likely that at least one of the foreign groups who is active in Latvia will decide that the market is too small to warrant further commitment (especially if the macro-economic environment is difficult) and will pull out. Second, it is even more likely that another of the foreign groups will be able to take advantage of the woes of one of the various local groups to buy market share. Indeed, already, in 2008, Seesam has been acquired by the Austrian, Vienna Insurance Group, marking its entry into all three Baltic state insurance markets.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/43680_latvia_insurance_report_...

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.

BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including Daily Alerts, monthly regional Insights, and in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.