The Bank of Lithuania expects a moderate growth of the insurance market this year, by 3% to 5%, up to a total EUR 997 million in GWP. While the non-life business is expected to recover from the 2020 fall, life insurance will grow at a slower pace than last year.
Lithuanian insurers reported GWP of EUR 710 million at end-September 2020, 0.6% more y-o-y, according to the quarterly market figures published on the Central Bank's website.
This year, the Bank of Lithuania — the single supervisory authority for the whole financial sector in Lithuania, including the insurance market — conducted a mystery shopping exercise to evaluate the practices of certain companies and persons offering training and consultation on savings and investment.
Lithuanian insurers reported GWP of EUR 470.48 million in 1H 2020, 0.29% more y-o-y, according to the half-year figures published on the Central Bank's website.
Most insurance undertakings operating in Lithuania and providing unit-linked insurance services considered the Bank of Lithuania's position on the recovery of management fees (rebates). As a result, unit-linked insurance clients already benefit more and can accumulate more capital.
In the first quarter of the year, the Lithuanian insurance market grew by 3.55% y-o-y to EUR 240 million, while the value of payments expanded by more than 8% y-o-y to EUR 135 million, according to figures published by the Bank of Lithuania.
From 1 July 2020, life insurance company Bonum Publicum changes its name to SB Draudimas. The change was driven by the closer integration with Siauliu Bankas and based on a group-wide image strategy of being closer to the customer.
Starting July 1st, COMPENSA Vienna Insurance Group and SEESAM Insurance will complete the merger and become one insurance company. SEESAM, one of oldest insurers in the Baltics, entered the VIG family in 2008, with its life insurance unit, followed in 2018 by the acquisition of the non-life company.
This year, the development of Lithuania's insurance market will depend on the impact of the coronavirus (COVID-19) outbreak on transport, health and unit linked life assurance. While the country's insurance market grew by almost 8% in 2019, this year its growth is expected to moderate.
The Lithuanian insurance market totaled EUR 945.2 million at the end of 2019, 7.6% more y-o-y. At the same time, insurance companies paid EUR 499.3 million in claims, or 10.3% more y-o-y, according to the market data published by the Central Bank.
At the beginning of December 2019, the Bank of Lithuania appointed Jekaterina GOVINA as Director of the Supervision Service.
The Lithuanian insurance market totaled EUR 706.35 million at the end of September 2019 with an 7.87% increase y-o-y. At the same time, insurance companies paid EUR 369.35 million in claims, or 11.41% more y-o-y, according to the market data published by the Central Bank.
The Lithuanian insurance market totaled EUR 469 million at the end of June 2019 with an 6.7% increase y-o-y. At the same time, insurance companies paid EUR 245 million in claims (8.7% more y-o-y).
In the first quarter of this year, the Lithuanian insurance market grew by 6% y-o-y to almost EUR 232 million, while the value of payments expanded by more than 8% to EUR 125 million, according to figures published by the Bank of Lithuania.
UAB Workpower has become the first company allowed by the Board of the Bank of Lithuania to enter the Bank of Lithuania's regulatory sandbox and test a peer-to-peer (P2P) insurance platform.
The Board of Supervisors of the Bank of Lithuania in June approved the Board of Life Insurance and Pension Company Aviva Lietuva, according to the Company's official statement.
In March 2019, Ukrainian insurer GUARDIAN announced in a press release that Lithuania citizen, Arunas SIKSTA, was about to acquire the company as a new shareholder, the insurer said.
The entire Lithuanian insurance market totaled about EUR 878 million at the end of 2018, 11% more y-o-y, according to the year-end figures recently published on the Central Bank website.
The number of disputes between insurers and customers has raised mainly due to the low degree of customers' understanding over their insurance products, an analysis over the property insurance market recently published by Bank of Lithuania says.
The Baltic countries - Estonia, Latvia and Lithuania -, have recorded between 2008-2017 a trend similar to the other CEE markets. The same main pattern can be distinguished, splitting the evolution of the market in three periods: decline (2008-2010), recovery (2010-2013) and growth (2013-2017).