LITHUANIA: the insurance market has overcome the pandemic effects, but new challenges may affect its development

27 April 2022 — Marina MAGNAVAL
According to the Bank of Lithuania, in 2021 the insurance market was profitable, but the trends were different: profits of life insurance companies were growing, while those of non-life companies were declining. The entire insurance market grew by about 9% last year.

"Our analysis shows that the impact of the COVID-19 pandemic on the insurance market was not significant. It was mitigated by rapid responses of insurers, proactive risk management actions and lessons learned. Of course, it also revealed vulnerable areas of activity that need to be addressed and additional resources invested in. Now there are challenges related to the Russian war in Ukraine, which may affect the transport and other sectors important for the insurance market", says Renata BAGDONIENE, Director of the Banking and Insurance Supervision Department of the Bank of Lithuania.

The insurance companies last year earned EUR 45.2 million last year. The unaudited profit was almost 10% less y-o-y. All companies were profitable, except for one non-life insurer. Profit earned by life insurance companies amounted to EUR 17.8 million, which is almost a fifth more than a year ago. The non-life insurance market grew rapidly in terms of premiums, but the number of insured events, paid claims and technical provisions grew even faster. As a result, profit of the non-life companies decreased by 21.9% to EUR 27.4 million.

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