For the people of Latvia this autumn, the primary concerns remain the health of themselves and their family members (53%) and their household financial situation (48%), but these are increasingly being joined by anxiety regarding the geopolitical situation and security in the region (46%), according to the latest Swedbank Insurance “Latvia Residents’ Concerns Monitoring”[1]*. While concerns about health and finances have eased since the summer, anxiety regarding geopolitical security has grown from 39% to 46%. At the same time, worry about natural disasters has also risen sharply – 15% of residents now cite floods, storms, and other natural risks as one of their major causes for concern, which is two and a half times more than in the summer (6%).

Alongside concerns about geopolitical security and natural risks, as the colder months of the year set in, very practical everyday issues are also coming to the fore for residents. Six out of ten Latvian residents (59%) are concerned about higher housing maintenance and heating costs during the autumn season. A further 39% are worried about falling ill and the associated costs, while one in three (33%) is concerned about unexpected expenses that would be difficult to cover.

The onset of darker days and variable weather conditions also highlights everyday safety risks. The risk of road traffic accidents in the dark, rain, snow, or icy conditions is mentioned as an autumn seasonal concern by 16% of residents, falls and injuries on slippery pavements or roads by 12%, and the safety of children on their way to school or elsewhere outside the home by 11%. Only one in ten respondents (10%) indicates that they do not feel any additional concerns during the autumn and winter season.

“When asking residents what concerns them more now than a year ago, we see that the increase in everyday expenses is at the forefront – mentioned by 59% of respondents. At the same time, almost half, or 47%, admit that they are more concerned about the geopolitical situation and security than they were a year ago. This shows that, alongside everyday financial issues, people's sense of security is increasingly influenced by world events. Prolonged geopolitical tension and recent natural disasters, including the tragedy in Nepal, remind us that threats that once seemed distant can suddenly affect our own families and loved ones. Such events inevitably leave an imprint on how we perceive risks,” notes Swedbank Head of Insurance Product Management in the Baltics, Dzintars Kalniņš.

Unexpected expenses of 500 euros would be problematic for many

Although a significant portion of the population is worried about the potential financial consequences of unforeseen situations, the study reveals that the readiness to cover such expenses varies greatly. If an unexpected expense of 500 euros were to arise within the next three months, for example due to home, car, or health problems, only 32% of respondents could cover them without a significant impact on their daily budget.

Almost a quarter (24%) would have to use their savings, while 21% could cover such expenses, but it would significantly impact their daily budget. A further 8% would have to borrow, while 7% admit that they would not be able to cover such expenses at all. 5% of respondents would rely on an insurance payout. This suggests that many residents underestimate the importance of insurance in mitigating risks and financial losses.

Also, when asked what would help them feel safer during the dark autumn season, alongside better street and road lighting (62%) and safer roads and pavements (50%), residents mentioned financial security. Almost a third (32%) would feel safer with larger savings for emergencies, while 29% would feel better knowing that expenses incurred in the event of a sudden accident would be covered.

“Not all risks can be foreseen or prevented, but it is worth thinking in time about how unexpected events could affect family finances. Insurance can be an important ‘plan B’ for a family – alongside savings and other safety measures. Its purpose is not to prevent accidents, but to help mitigate their financial consequences. This is especially crucial in situations where even a few hundred euros in unexpected expenses can place a significant burden on a family budget,” notes Dzintars Kalniņš.