Abstract: The objective of the article is to do a research on current and the most important issues regarding the impact of macroeconomic factors on one of the most widespread insurance products – Motor Third Party Liability insurance (MTPLI). A research has been made to evaluate the actual presence of the MTPLI insurance in the Latvian market of motor vehicle insurance and the presence in the general insurance portfolio at European level. The authors studied the performance of Motor Third Party Liability insurance in the Latvian insurance market from 2005 till 2019. This research examines the actual problems of Latvian insurance market in the context of the impact of macroeconomic indicators on MTPLI product performance. Further considerations regarding the macroeconomic impact on MTPLI have been made, taking into account the role of the macroeconomic factors on the demand for the specific insurance product. The paper focuses on the analysis of factors determining development of the insurance market as well. An overall evaluation of the impact of macroeconomic factors on the MTPLI in Latvia has been carried out.
Authors: Aivars Spilbergs, Andris Fomins, Māris Krastiņš
Keywords: Motor Third Party Liability insurance, macroeconomic factors, insurance consumption, insurance premiums.