At the end of 2025, the Latvian Parliament adopted amendments to the Insurance Contract Law aimed at strengthening consumer protection and improving transparency. The reform follows disputes after the 2024 floods, where compensation was denied due to extensive exclusions in policy annexes.

Plain Language Requirement

• Insurance terms for individuals must be clear and understandable
• Use of defined terms, logical structure and simple sentences required
• Applies from 1 January 2027/2028 (phased implementation)
• Not applicable to large-risk or professional civil liability insurance

Pre-Contractual Information

• Policy terms must be provided before conclusion in writing or another durable medium
• The contract consists of the policy, terms and agreed amendments
• The policy confirms conclusion even if unsigned, subject to entry-into-force rules

Clarity on Coverage

• Policies must clearly distinguish insured and uninsured risks
• Obligation applies from 1 July 2026

Overall, the amendments enhance legal certainty, improve consumer understanding and aim to reduce disputes regarding the scope of insurance coverage in Latvia.