Fuelled by agreements concluded by residents and enterprises, insurance market will grow by 6–7 per cent this year
In 2015, in terms of premiums written, Lithuania’s insurance market grew by 7.4 per cent amounting to EUR 645.1 million. This was in line with the projections of the Bank of Lithuania, thus the development of the insurance market should amount to 6-7 per cent this year.
‘Currently the growth of the insurance market is mostly driven by the recovering private sector. Given the slower growth of transport-related insurance type premiums written, this year the development of the non-life insurance branch will be somewhat more moderate compared to its strong growth last year, while the life assurance sector should grow at a similar pace’, said Mindaugas Šalčius, Deputy Director of the Prudential Supervision Department of the Supervision Service at the Bank of Lithuania.
The Bank of Lithuania forecasts that the growing domestic economy will have a positive impact on the development of the insurance market, which is estimated to amount to 6–7 per cent this year. The life assurance market volumes are likely to expand by 9–10 per cent, while those of the non-life insurance market — by 4–5 per cent.
In 2015, the insurance undertakings registered in Lithuania and the branches of insurance undertakings of other EU countries established in Lithuania wrote EUR 645.1 million in insurance premiums, i.e. 7.4 per cent more than in the previous period.
The amount of written life insurance premiums rose by 9.7 per cent, amounting to EUR 236 million. The amount of premiums written within the largest life assurance class — unit-linked life insurance — increased by 12.3 per cent, to EUR 170.2 million.
The amount of premiums written in the non-life insurance sector stood at EUR 409.1 million last year, an increase of 6 per cent year on year. Growth in the non-life insurance market was mainly driven by property, Casco, and health insurance classes, while the negative impact on volume growth stemmed from the compulsory vehicle and suretyship insurance classes.
Detailed statistics of Lithuania’s insurance market are available on the Bank of Lithuania website.