Summary

The Lithuanian insurance industry is regulated and governed by the Bank of Lithuania (LB). The LB took over the task of insurance supervision on January 1, 2012, following the Insurance Supervisory Commission (ISC). The LB is the central bank of the Republic of Lithuania and its principal objective is to maintain price stability in the Lithuanian financial market.

The LB is instrumental in ensuring the stability and efficient functioning of financial services. The LB introduced a new unit, the Supervision Service in 2012, to perform both prudential and market conduct supervision of financial markets. The Board of the LB authorized the Supervision Service to solve insurance issues independently.

The primary act, which governs insurance activities in Lithuania, is the Law on Insurance 2003, adopted on September 18, 2003. The law was introduced to regulate insurance and insurance mediation activity to make Lithuanian insurance operations credible, efficient, safe, and stable. The law comprises the definitions, licensing process, capital requirements, policy terms, and penalties for offenders of the provisions.

Key Takeaways

  • The Lithuanian insurance industry is regulated by Bank of Lithuania (LB)
  • Solvency II came into force in the Lithuania on January 1, 2016, and introduced new risk management standards for insurers
  • Composite insurance is not allowed in Lithuania. However, companies from EU and EEA member states are allowed to operate in both classes of insurance
  • Motor third-party liability insurance and civil liability insurance for construction designers and audit firms are key compulsory classes of insurance
  • Insurance premium tax (IPT) is not levied on insurance products



The report "Governance, Risk and Compliance - The Lithuanian Insurance Industry", is the result of extensive research into the insurance regulatory framework in Lithuania. It provides 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 brings together research, modeling and analysis expertise, giving 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.

The report provides -

  • An overview of the insurance regulatory framework in Lithuania
  • The latest key changes, and changes expected in the country’s insurance regulatory framework
  • Key regulations and market practices related to different types of insurance product in the country
  • Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Lithuania
  • Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
  • Details of the tax and legal systems in the country.




Scope

  • The report covers details of the insurance regulatory framework in Lithuania.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.




Reasons To Buy

  • Gain insights into the insurance regulatory framework in Lithuania.
  • Track the latest regulatory changes, and expected changes impacting the Lithuania 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 product.