Sustainable and robust growth of insurance market continues
In the first quarter of this year, the insurance market grew by 18.3%, the premiums amounted to almost €220 million, and claims paid – €115 million.
‘Robust growth of the domestic economy was reflected in the insurance market results for the first quarter: a one-fourth increase in the sales of new motor vehicles pushed up the non-life insurance market, while the life assurance market grew by a tenth, following a last year’s decline,’ said Mindaugas Šalčius, Director of the Financial Services and Markets Supervision Department of the Banking Service at the Bank of Lithuania.
Insurance premiums posted an increase of 18.3% over the first quarter of 2018 year on year, to almost €220 million. The amount of non-life insurance premiums expanded by more than a fifth – to €160 million; the life assurance market – by a tenth, to €59 million.
€115 million were paid in claims over the first quarter, a year-on-year increase of almost 7%. About 70% of total claims paid – €80.5 million (14% more year on year) was comprised of non-life insurance claims paid. Over the first quarter of this year, almost €35 million were paid out in life assurance claims, a year-on-year decrease of 6.5%. Life assurance claims contracted on account of smaller claims paid out upon expiry of insurance contracts and claims paid out upon termination of insurance contracts.
The profits of insurance undertakings amounted to €11 million over the initial three months, an increase of 43% year on year. The profits of life assurance undertakings amounted to €4.7 million, of non-life insurance undertakings – €6.3 million. Over the first quarter of this year, insurance brokerage firms earned €2.3 million in profits, an increase of nearly 30% year on year.
The assets and investment of insurance undertakings posted moderate growth in the first quarter of 2018: at the end of March, they managed assets worth €1.5 billion – a year-on-year increase of 1%. At the end of September, the assets of insurance brokerage firms stood at €33.3 million, growing by almost 19.2% over the year.
All insurance undertakings met the required solvency capital ratios: the solvency ratio of life assurance undertakings was 2.42, of non- life insurance undertakings – 1.42 (the required minimum is 1).
In the first quarter of 2018, 20 insurers provided insurance services in Lithuania, of which 9 undertakings and 11 branches of undertakings registered in other EU countries. 97 insurance brokerage firms mediated insurers in concluding insurance contracts.
Over the first three months of this year, about 140 people applied to the Bank of Lithuania regarding insurers’ actions – 30% more year on year. Most disputes with insurers traditionally arose over motor third party liability compulsory insurance, property, and Casco insurance. In one instance, upon investigation by the Bank of Lithuania of the dispute over the application of travel insurance policy terms and conditions, the insurer paid out to the client €22 thousand in the insurance claim.
The link to the Review of the Insurance Market for the first quarter is available here.