Insurance market — on the path of stronger growth
Insurance market growth strengthened even more this year, and life assurance was characterised by the largest volume of premiums written in six years.
“The recovery in the national economy has placed the entire insurance market on the path of growth — some segments of this market are hitting new records in premiums written and claims paid; the number of contracts concluded is growing fast,” says Mindaugas Šalčius, Deputy Director of the Prudential Supervision Department of the Supervision Service of the Bank of Lithuania.
The insurance undertakings registered in the country and branches of insurance undertakings of other European Union Member States established in Lithuania during nine months of the current year wrote insurance premiums in the amount of LTL 1,408.2 million, a year-on-year increase of 10 per cent.
Over nine months, the life assurance market expanded by 10.7 per cent (up to LTL 418.5 million), and the non-life insurance market — 9.7 per cent (up to LTL 989.7 million) of premiums written year on year.
The development of the life assurance market was driven by growth of 11.7 per cent in unit-linked life assurance premiums written, despite the stronger growth rate of the traditional life assurance market as early as at the beginning of the year. Over nine months, a total of LTL 286.5 million of unit-linked life assurance premiums was written, while in the third quarter alone, the number of such insurance contracts concluded rose by 27.6 per cent — to 20,715. The amount of premiums written in one of the traditional life assurance classes — insurance in the case of survival — hit an all-time record, LTL 101.3 million.
The volumes of contracts concluded expanded across all classes of non-life insurance, except for suretyship insurance. The number of contracts concluded within the largest insurance group — motor third party liability insurance — increased by 5.1 per cent and amounted to 2,047.7 thousand units, and the amount of premiums — 10.8 per cent and 357.8 million respectively. The claims paid within this class of insurance hit new record heights. Over nine months of 2013, LTL 201.9 million, or 13.5 per cent more was paid year on year.
The leap in life assurance claims paid has been slowly fading due to the expiration last year and this year or termination of 10 year-insurance contracts. LTL 62.1 million of claims were paid in January 2013, but in subsequent months their volume contracted and, in September, only LTL 19.4 million was paid. Over nine months of this year, a total of LTL 256.9 million of life assurance claims were paid.
For a detailed review (572.2 KB ) of Lithuania’s insurance market visit the Bank of Lithuania website.