New Financial Services market report from Business Monitor International: "Lithuania Insurance Report Q1 2015"

Boston, MA -- (SBWire) -- 11/20/2014 --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.

View Full Report Details and Table of Contents

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...

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 800-844-8156

Browse all Financial Services research reports at Fast Market Research

You may also be interested in these related reports:

- Mexico Insurance Report Q1 2015
- United States Insurance Report Q1 2015
- Hungary Insurance Report Q1 2015
- Bahrain Insurance Report Q1 2015
- South Africa Insurance Report Q1 2015
- United Arab Emirates Insurance Report Q1 2015
- Bermuda Insurance Report Q1 2015
- Estonia Insurance Report Q1 2015
- Iran Insurance Report Q1 2015
- Indonesia Insurance Report Q1 2015