Environmental insurance is a special, the most complex and specific form of insurance. The development of environmental insurance in Latvia is complicated by the economic crisis in general and the precarious financial situation of most enterprises. Purpose of the article is to investigate the basic problems of environmental insurance and its development trends in Latvia. Certain difficulties in carrying out environmental insurance creates a lack of necessary experience and skills, poor infrastructure development of environmental insurance. Not all the statistics on environmental issues in the public domain. Therefore, the Latvian insurers currently do not have sufficient insurance statistics, allowing to accurately determine the probability of insurance claims and insurance rates. Nevertheless, based on international experience in developing their techniques insurance companies in Latvia is still necessary and appropriate, because on the one hand, it will put on a scientific basis for action on environmental insurance in the domestic market and, on the other hand, will facilitate the placement of risks in reinsurance abroad.