In 2013, the Baltic States were among the fastest economically developing countries of the European Union. According to Eurostat data, gross domestic product in 2013 was higher than in 2012: by 4.1% in Latvia, 3.3% in Lithuania and 0.8% in Estonia.
In 2013, the condition of the insurance sector in Lithuania was good. The gross written premium of non-life insurance companies was LTL 1.3 bn and increased by 8.7% with respect to the previous year, while the gross written premium of life insurance companies amounted to LTL 626 m (an increase of 8.9%).
The Act on Insurance was amended in Lithuania on 19 December 2013, the provisions of which have been in force since 1 January 2014. The main amendments applied to:
- equalizing the declarations of will of the party to the insurance contract in electronic form, in the form of a fax or via other telecommunications devices with a declaration made in written form;
- the regulation of the matter of processing the personal data of the policyholder, the person paying the premium, without their consent, except for detailed personal data;
- the regulation of the consequences of the failure to perform the obligation to pay the insurance premium on a specified date under an insurance agreement (in non-life insurance), under which the insurance agreement expires, if the premium is not paid within 30 days (previously 15 days) from the date on which the notice of default on the payment term is sent. In life insurance, the regulation is only amended with respect to the payment term of the premium after the notice is sent;
- expansion of the scope of the insurer’s rights with regard to collecting personal data when handling claims;
- the detailing of the principles regarding automatic renewals of insurance agreements, according to which their quantity is not limited;
- the award of rights to a state institution to adjudicate on the matter of the funds (insurance premiums), which are held on the account of the brokerage company in the event of its bankruptcy.
Amendments were adopted in 2013 to the Insurance Act, under which, when calculating the level of the premium and the insurance benefit, insurance companies do not have the right to take into account the gender of the insured, which can affect the insurance risk.
In 2013, the Bank of Lithuania:
- adopted a resolution on the level of costs of supervision over insurance companies. The amendment has been in force since 1 January 2013. According to the resolution the level of the charge was raised from 0.16% to 0.182% of the value of the gross written premiums per year;
- also changed the maximum technical rate – its current level is 1.88%;
- accepted that the minimum indexed sum insured in TPL insurance of the insurance agent is EUR 1.25 m in the case of one insurance event and EUR 1.88 m for all insurance events per year;
- adopted a resolution on the guidelines regarding the combating of money laundering, according to which insurance companies must guarantee that their foreign branches will comply with these guidelines.
On 28 January 2013, the Minister of Finance of the Republic of Lithuania, amended the level of the charge on written premiums to the Lithuanian office of motor vehicles from 4.6% to 4.1% by means of a Regulation.