70% of KASKO customers choose a deductible for the first case of damage

The rapid rise in inflation has affected almost every industry. Along with the rise in prices, the spending habits of the population inevitably change. “Gjensidige Latvija” experts examine how inflation has affected car owners INSURANCE (voluntary land vehicle insurance) policy purchase trends.

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The available data of “Gjensidige Latvija” show that currently approximately one in seven customers who have purchased OCTA insurance, has also purchased a CASKO policy. In addition, the experts of the insurance company indicate that, in general, over the last three years, the demand for CASCO insurance has been on an increasing trend.

“More and more customers believe that it is important to protect their vehicle from the occurrence of various risks. Of course, the pandemic and its socio-economic consequences, which are rapidly increasing inflation, less vehicle movement, remote work, had a certain impact on the CASKO insurance demand in the last three years opportunities, etc. In these moments, temporarily, the demand for the KASKO insurance product shows a decreasing trend, however, in general, it is pleasing that more and more drivers are taking care of the safety of their vehicle,” informs Kristīne Mihailova, head of transport products at “Gjensidige Latvija”.

She also adds that although in 2022 there will be a significant drop in the segments of registered light passenger cars and commercial cars, the introduction of sanctions has not had a noticeable impact on the number of KASKO requests. Namely, after Car associations according to the indicated data, in the first quarter of this year, the number of registrations of light passenger cars in the European Union decreased by 12.3%, while commercial cars – by 18.1%, however, the demand for CASCO has not decreased.

In general, the Latvian CASKO market is also experiencing growth in 2022. Due to the influence of sanctions, there are currently limited opportunities to provide insurance coverage in certain territories of the CIS (Commonwealth of Independent States), customers who previously chose the coverage of the territories of the CIS countries in the KASKO policy, understanding the current situation, choose to close the policies with the coverage of the Baltic or European territory.

“Gjensidige Latvija” statistics show that customers’ buying habits of KASKO products have also changed. Taking into account the increasing costs in the road transport industry, including CASKO insurance costs, customers are currently evaluating the insurance coverage chosen in the policy much more carefully, thus reducing the insurance policy premium. The insurer’s data show that 70% of customers, when purchasing a CASKO policy, choose a deductible for the first case of damage. Also, customers choose a narrower coverage of insured risks and repairs by the insurer, rather than free-choice car repair shops.

Although KASKO’s customer profile is influenced by several factors, currently customers in the 25-45 age group who are located in Riga, Pieriga or 70 km from the capital choose to insure their vehicle additionally. In addition, this year the CASKO policy is most often purchased for “Volkswagen”, “Toyota” and BMW brand cars.

CASCO, or voluntary land vehicle insurance, covers losses incurred by a person in the event of vehicle damage, robbery or theft. CASKO insurance differs from OCTA (compulsory insurance of the civil liability of the vehicle owner) by the object of the insurance. While in the case of OCTA, the vehicle itself is not insured, but rather the responsibility of the driver, if a traffic accident is caused, CASKO insurance covers damages in case of damage to the vehicle itself, regardless of who is to blame for causing the accident.


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