An insurance market keeps increasing

In 2013 the insurance undertakings registered in the Republic of Lithuania and branches of insurance undertakings of other European Union Member States established in Lithuania wrote insurance premiums amounting to LTL 1,945.5 million, an increase of even 8.8 per cent from the previous year. 

Both the life assurance and non-life insurance markets recorded similar growth rates: the former expanded by 8.9 per cent — to LTL 626.0 million, the latter by 8.7 per cent — to LTL 1,319.5 million. The life assurance market volume, as compared to the previous year, was the highest in six years.

The growth rate of the insurance market in 2013 was consistent with the revised projections of the Bank of Lithuania. The Bank of Lithuania projects that, if the trends of Lithuania's economic development remain similar, in 2014 the insurance market will grow by 8-10 per cent. The life assurance market volume is likely to expand faster - by 9-11 per cent, while non-life insurance market is likely to grow slightly less moderately - by 8-10 per cent.

5.3 million units of insurance contracts were concluded in 2013, an increase of 3.8 per cent from the previous year.

In 2013, for the first time in the last six years, more robust growth was observed in the number of life assurance contracts: as compared to the previous year, the number of life assurance contracts concluded increased by as much as 14.9 per cent, or 65.4 thousand units. The number of non-life insurance contracts concluded has been growing at a similar pace for the third consecutive year. The number of non-life insurance contracts concluded grew bu 3.7 per cent, or 5.2 million units, as compared to the previous year.

As the growth rate of insurance contracts concluded was quite strong, the number of insurance contracts in force as of 31 December 2013 increased by 3.2 per cent year on year. 

In 2013 the claims paid by the insurers amounted to LTL 1,076.6 million — 1.0 per cent less than a year ago. A decline of 14.5 per cent in life assurance claims paid in 2013 suggests that the boom of claims paid has come to an end. The amount of non-life insurance claims paid increased by 6.5 per cent in consenquence of an increase in non-life insurance volumes in terms of premiums written.

A detail review of 2013 Insurance market you can find at official web page of Central Bank of Republic of Lithuania.