This paper is about socially economic role of the insurance market of Latvia in a national economy. Insurance market structure in Latvia essentially differs from that of European Union and the structure all over the world. The previous few years’ Latvian insurance market continued to develop, but within last two years a rapid decrease of signed premiums in as risk as life insurance types has been observed. In the Latvian insurance market the fast gain of the signed premiums both by risk insurance, and in life insurance for the previous few years is observed, but because of economic crisis development of the market stopped. At the same time, the insurance companies will be compelled to search for all new competitive advantages since it is necessary to improve profitability in the insurance market. It inevitably means increase of the prices for services according to their real cost price and economic processes in the country. The goal of research is to analyze the insurance market in Latvia and to show up main aspects, which affect development of insurance in Latvia, and to define the socially economic role of insurance in national economy. The objective of this article is to examine the causal relationship that potentially exists between growth in the insurance industry and economic growth. Moreover, by recognizing that the wider economic benefits of insurance are conditioned by national regulations, economic systems and culture, it is argued that an examination of the inter-relationship between insurance and economic growth needs to be conducted on a per country basis.