Business Monitor International

Lithuania Insurance Report

Published 12 November 2014

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Lithuania Insurance Report

BMI View: Lithuania ' s insurance sector has many strengths. However, the outlook, both over one and five years, is fairly uninspiring. As of late 2014, we see the strong sales in new business reported by some life insurers as being a one-off factor associated with Lithuania ' s adoption of the euro (and, therefore, 0% interest rates on bank deposits). The life insurance segment remains very under-developed by most metrics. Accordingly, we think that the main challenge - the low levels of income of most households - persists. This means that we still look for (low) single digit growth in life premiums through the forecast period. In the non-life segment (which is also under-developed) the main challenge is different, but should also result in sluggish premium growth. In spite of consolidation in the market, of which PZU ' s acquisition of Lietuvos Draudimas is the latest (and biggest) example, price competition will remain intense. 

The strengths of Lithuania's insurance sector are those of the multi-national companies that dominate it. These strengths, in no particular order, include: access to capital; strong brands; ability to innovate and to develop attractive new products; multi-channel distribution; and access to economies of scale that come from pan-European geographic footprints. Adoption of the EUR, with effect from January 1, 2015, will reinforce the stability of the economy and the financial system.

Total premiums across the sector as a whole are equivalent to about 1.6% of GDP or around USD260 per capita. The life segment accounts for just under one third of all activity; the non-life segment for a little over two-thirds. A life insurance sector that has the strengths which are evident in Lithuania, yet where life premiums are only about USD80 per capita, is almost invariably one where too many households are too poor to afford life insurance. In this respect, Lithuania is similar to a number of the poorer countries in Central and Eastern...

The Lithuania Insurance Report has been researched at source and features Business Monitor International (BMI)'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.

Key Benefits

  • 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.

Regional Outlook

Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.

Business Environment Rankings

BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

BMI Industry Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.

Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).

Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).

Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).

Competitive Landscape & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. 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.

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'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc