Lithuania Insurance Industry – Governance, Risk and Compliance

The Lithuania insurance industry research report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report also gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Lithuania Insurance Industry Dynamics

The Bank of Lithuania (LB) has been responsible for the supervision of the insurance industry in Lithuania since the start of 2012. Its principal objective is the monitoring of insurance and reinsurance companies and insurance intermediaries. The LB introduced a new unit to regulate the insurance industry, the Supervision Service, which became operational in early 2012.

The guidelines regulating the insurance industry in Lithuania are stipulated in the Law on Insurance 2003. The act governs the activities of insurance and reinsurance companies and insurance intermediaries. The law has been amended many times in accordance with changes in market dynamics and European legislation. The latest amendment came to the insurance law on October 16, 2012.

Lithuania Insurance Industry Segmentation by License Types

The key types of licenses issued in the Lithuanian insurance industry are life insurance, non-life insurance, composite insurance, and reinsurance.

Life insurance: Life insurers can obtain a license for individual and group life insurance, marriage and birth insurance, life insurance related to investment fund, tontines, and pension-related insurance.

Non-life insurance: Non-life insurers can obtain a license for classes including accident insurance, sickness insurance, land vehicle insurance, railway rolling stock insurance, aircraft insurance, ships insurance, goods in transit insurance, property insurance against fire and natural forces, property insurance against other risks, and liability arising out of the use of motor vehicles operating on land.

Composite insurance:  A life insurer may also carry out non-life insurance business, but only if the performing life insurance activities shall also have the right to only perform the activities of non-life insurance groups specified with the procedure established by legal acts. The existing non-life insurance undertakings which have valid life insurance contracts shall also exercise the rights and fulfill their obligations under those contracts until the end of the contracts.

Reinsurance: A (re)insurance company shall only be entitled to carry out insurance and reinsurance activities upon obtaining an insurance or reinsurance activity license issued by the supervisory authority.

Lithuania Insurance Industry Segmentation by Key Bodies

The key bodies that oversee the Lithuania insurance industry are the International Association of Insurance Supervisors (IAIS), European Insurance and Occupational Pensions Authority (EIOPA), and Federation of European Risk Management Associations (FERMA).

International Association of Insurance Supervisors: The IAIS is a membership-driven global organization that represents insurance regulators and supervisors. It formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors. The IAIS works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.

European Insurance and Occupational Pensions Authority: The EIOPA, a part of the European System of Financial Supervision, is an independent advisory body to the European Parliament and the Council of the EU. The main responsibilities of the EIOPA are to support the financial system’s stability, the transparency of markets and financial products, and the protection of policyholders, pension scheme members, and beneficiaries in all European Member States.

Federation of European Risk Management Associations: FERMA is a member of the International Federation of Risk and Insurance Management Associations (IFRIMA). The main objectives of FERMA are to monitor new regulations and standards besides detecting early issues which can impact the risk management and insurance sectors. FERMA also sets up surveys and benchmarks to identify and share current practices and maintains two-way communication with national associations on the development and application of risk management. It also establishes technical alliances and ad hoc coalitions with other stakeholders.

For more insights on the Lithuania insurance industry analysis, download a free report sample

Lithuania Insurance Industry Report Overview

Scope

This report provides:

• Details of the insurance regulatory framework in Lithuania
• Details of the rules and regulations governing insurance products and insurance entities
• Lists and analysis of key trends and developments pertaining to the country’s insurance regulatory framework
• Analysis of the rules and regulations pertaining to the establishment and operation of insurance businesses in the country
• Details of the taxation imposed on insurance products and insurance companies

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in Lithuania.
• Track the latest regulatory changes and expected changes impacting the Lithuanian insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices pertaining to various types of insurance products.