In the first half-year the insurance market grew by one tenth and a faster than projected annual growth rate is expected
In the first half-year the insurance market grew by almost one tenth — the insurance undertakings registered in Lithuania and branches of insurance undertakings founded in Lithuania by other European Union member states signed LTL 940.1 million in insurance contributions — 9.9 per cent more than in the same period last year. Such a pattern allows us to project more rapid than expected development of the insurance market.
“Having assessed the country’s economic indicators for the first half-year and the results of the insurance market, it is expected that by the end of the year the insurance market will reach a larger than projected growth volume,” says Mindaugas Šalčius, Deputy Director of the Prudential Supervision Department of the Supervision Service of the Bank of Lithuania.
According to him, it is possible that this year the insurance market will grow not 5–6 per cent as was projected before, but 6–9 per cent. According to the corrected forecast, the growth of the life assurance market will reach 5–7 per cent (earlier forecast was 3 per cent), while the non-life insurance market — 7–9 per cent (projected 7 per cent).
In the first half-year, compared to the same period last year, the life assurance market grew by 9.8 per cent (up to LTL 279.7 million), while non-life insurance —9.9 per cent (up to LTL 660.4 million) of signed contributions.
The 10.9 per cent investment life assurance development significantly influenced the growth of the life assurance market. In total, within the first half-year LTL 192.7 million in insurance contributions was signed.
The non-life insurance market by number of concluded agreements within the first half-year grew by 2.5 per cent (to 2.6 million units) and already exceeds the pre-downturn level. The number of concluded agreements in the largest insurance group — driver civil liability insurance — grew by 3.9 per cent and amounted to 1,363.8 thousand units.
This year the number of insurance claims increased. Some of them reached record levels. For example, within a half-year LTL193.9 million in insurance claims were paid out — 24.9 per cent more than last year in the same period. This record sum was due to the large number of insurance agreements that expired at the end of 2012. Particularly January of this year was exceptional, when then the largest amount of premiums was paid out — LTL 62.1 million. In later months the volume of premiums decreased, while in June only an LTL 18.9 million sum was paid out. The sum of non-life insurance benefits this year grew by 11.9 per cent — to LTL 385 million.
A more detailed review (17.8 MB ) of Lithuania’s insurance market can be found at the Bank of Lithuania website.