The effects of climate change are increasingly being felt in Latvia too, causing substantial losses to the farming sector. However, data compiled by the Latvijas Apdrošinātāju asociācija (LAA) show that insurance coverage in this sector fluctuates and usually increases after natural disasters.

“We can speak of significant development of the insurance industry in agriculture since 2020, when the number of insured farmers exceeded 750. The figure changes slightly from year to year, but overall it is clear that farmers are increasingly aware of the potential losses and more often choose insurance as a safety cushion against unpredictable weather that can affect the harvest and, consequently, their income,” says Jānis Abāšins, President of the Latvijas Apdrošinātāju asociācija (LAA).

According to LAA information, in 2024 a total of 813 farmers had purchased crop and planting insurance. The premiums they paid amounted to 12 million euros, while 12.3 million euros was paid out in claims overall, which also covers other risks and not only damage caused by natural disasters. By comparison, in 2020 there were 824 insured farmers, the premiums paid amounted to 11.9 million euros, and 6.3 million euros was paid out in claims.

Crop and planting insurance*

* data from the insurer VEREINIGTE HAGEL, which offers insurance in Latvia through the agricultural services cooperative society LATRAPS, is not included

Read the policy terms carefully

The LAA reminds customers that, before purchasing any insurance policy, including crop and planting insurance, they should study the policy's cover carefully and, if necessary, supplement it with additional risks.

Standard insurance usually includes compensation for a reduction in the amount of the harvest where the damage is caused by hail, storm, torrential rain, fire, weather conditions unfavourable for overwintering, or wild animals. Flooding, on the other hand, where water remains on the field for a prolonged period, is generally not covered and may be offered as an additional risk. Farmers growing crops that are unusual for Latvia should also study what insurers offer and find out whether the particular crop can be insured and on what terms.

“In May and June a large amount of rain fell in some areas of Vidzeme and Latgale, and farmers are now beginning to assess the extent of the losses and to approach insurers. In these cases too, insurers will assess each case individually, evaluating the situation on site in order to establish whether one of the insured risks has occurred,” says J. Abāšins.

The LAA points out that, in order to encourage farmers to insure their crops, state support is available - up to 50% for sown areas and up to 70% for vegetable, fruit and berry planting areas of the insurance premium amount. Farmers can submit project applications for this support until 1 July this year, to cover part of the cost of the insurance premium. Further information can be found on the Lauku atbalsta dienests website.

* Data compiled on LAA members; apart from them, one German insurer operates in the Latvian agricultural insurance market, and its data is not available.