BMI View: Although small, Lithuania's burgeoning insurance market offers healthy growth potential. Both the life and larger non-life sectors are expected to see premiums rise by the end of the current forecast period in 2019, recovering well from a short - term currency movement led contraction in 2015. The mar ket is home to a number of well- established regional insurance providers which are well placed to take advantage of growing distribution channels and will continue to achieve growth through the introduction of a greater range of products. The large insurance firms will be able to manage increasing capital requirements following the introduction of the Solvency II regime, though we may see some smaller players priced out of the market which gives scope for entry into the market via local acquisitions, particularly in the non-life sector.
|BMI/Bank of Lithuania|
|Gross life premiums written, EURbn||0.17||0.18||0.19||0.19||0.20||0.21||0.21||0.22|
|Gross life premiums written, EUR, % y-o-y||2.5||8.9||3.2||2.5||3.7||4.1||3.3||3.3|
|Gross life premiums written, USDbn||0.21||0.24||0.25||0.21||0.21||0.23||0.25||0.27|
|Gross life premiums written, USD, % y-o-y||-6.4||13.2||4.8||-15.8||0.9||7.0||8.0||7.8|
|Gross non-life premiums written, EURbn||0.35||0.38||0.39||0.40||0.42||0.44||0.46||0.48|
|Gross non-life premiums written, EUR, % y-o-y||6.6||8.7||1.9||3.1||4.6||5.1||4.7||4.7|
|Gross non-life premiums written, USDbn||0.45||0.50||0.52||0.44||0.45||0.49||0.53||0.58|
|Gross non-life premiums written, USD, % y-o-y||-2.6||13.0||3.5||-15.4||1.7||8.0||9.5||9.2|
Key Updates And Forecasts
Telecommunications company Tele2 Lithuania has started selling two insurance plans for drivers in partnership with the insurance brokers company Edrauda. Customers can purchase mandatory liability assurance and road assistance insurance via their mobile phones.
The Bank of Lithuania has reportedly issued the first new insurance business licence in 14 years - the licence has been issued to the private limited liability insurance undertaking Compensa Vienna Insurance Group which will provide cover across 14 non-life insurance classes as well as some compulsory lines.
Following a short-term contraction led by currency movements, we are forecasting steady growth in life insurance premiums written leading to premiums of USD270mn in 2019, up from USD210mn in 2015.
Growth will be slightly stronger in the larger non-life sector where we are forecasting premiums of USD580mn in 2019, up from USD440mn in 2015.
The Lithuania Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Lithuania Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Lithuanian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Lithuania to test other views - a key input for successful budgeting and strategic business planning in Lithuania's insurance market.
- Target business opportunities and risks in Lithuania through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.