Conclusions and Suggestions
Evaluating CTP insurance market system in Latvia I can conclude that:
1. Very often people recognize the abbreviation of the compulsory insurance of civil responsibility – CTP, with this designation should be understood that this insurance is compulsory and it covers the risks of potential losses, which a driver may cause to third persons or their property by driving the insured vehicle;
2. CTP insurance system is quite complex, but the exchange of information has been very good for the insurers and the state institutions and between the state institutions;
3. CTP insurance is the most popular and largest type of insurance according to the turnover, which is one of the main sources of incomes for the Latvian insurance companies. This is explained by the fact that the CTP insurance is compulsory, and if a person wants to move through the Latvian and EU public roads, CTP insurance is required.
4. CTP insurance market in Latvia as well has been affected by the global economical crisis, after the quick rise in the 2007 and in 2008, it has also experienced a sharp decline. This is mainly due to the decline of CTP insurance prices rather than the drop in number of customers;
5. BTA is the leader of CTP insurance market in Latvia, which mainly competes with the market price, and offers its customers additional offers to CTP insurance, such as daily information and technical support as well as the opportunity to apply for the delivery of fuel;
6. Similarly the AAS "BTA" other insurance companies also offer additional services to CTP in that way making CTP insurance offers wider and more enjoyable for the client that allows not to cut down the price of CTP and also attaches new clients.
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