This paper is about role of the insurance in an economic development. 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.