LITHUANIA: LAA: Lithuania's insurance market is twice that of the other Baltic states

20 April 2023 —
The insurance market of all three Baltic countries grew at a similar pace last year, but the Lithuanian market was twice as large as the Latvian and Estonian markets. The fastest GWP growth in 2022 was in Lithuania - 19%, reaching EUR 1.23 billion, followed by Latvia with 16% (EUR 681 million) and Estonia with 13% (EUR 551 million), according to the Latvian Association of Insurers (LAA).

In 2022, the situation in the Baltic countries was slightly different in the field of paid claims - if in Latvia and Lithuania their growth was similar (23% and 25% respectively), in Estonia they grew by only 8%. Amount-wise, paid claims in the three countries were as follows: in Lithuania insurers paid EUR 682 million, in Latvia - EUR 435 million, in Estonia - EUR 383 million.

"There is no single answer to the question why the Lithuanian insurance market is twice as large as that of Latvia. It is a combination of several factors - a larger population and higher economic activity, which is important in insurance of legal entities, and simply a higher GDP and standard of living, which attracts more attention and funding to insurance", says Janis Abasins, president of LAA.

The most significant differences in the insurance markets of the Baltic states are in life insurance, health insurance and travel insurance, while the trends in other types are very similar. Last year, GWP life insurance in Estonia (-9%) and Latvia (-3%) decreased, while in Lithuania it increased by 6%. Remunerations were paid out in record high amounts in Latvia (EUR 116 million, +43%), in Lithuania (+29%), while in Estonia they decreased by 14%. Health insurance in Latvia occupies a much larger share than in neighboring countries - 19%, in Lithuania - 11%, in Estonia - 2%. Last year, health insurance grew rapidly in all countries - it increased by 21% in Latvia, by 30% in Lithuania, and by 77% in Estonia. Paid claims also increased, reaching EUR 98 million in Latvia, EUR 76 million in Lithuania and EUR 11 million in Estonia.

A relatively interesting comparison of the Baltic states is also in travel insurance. Due to travel boom in Latvia last summer, this insurance segment increased by 55%, paid claims - by 131%, people in its northern neighboring states traveled much more actively - GWP increased by 85%, paid claims - by 145%. Travel insurance is in the TOP5 list of Estonia, Lithuanians, on the other hand, either traveled little or traveled uninsured, as the increase in premiums was only 27%, both premiums and paid claims are relatively small in Lithuania.



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