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Lithuania Governance, Risk and Compliance Insurance Industry Report 2019 - ResearchAndMarkets.com

March 7, 2019

DUBLIN--(BUSINESS WIRE)--Mar 7, 2019--The “Governance, Risk and Compliance - The Lithuanian Insurance Industry” report has been added to ResearchAndMarkets.com’s offering.

“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 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 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.

Key Topics Covered:

1 INTRODUCTION

1.1 What is this Report About?

1.2 Definitions

2 GOVERNANCE, RISK AND COMPLIANCE

2.1 Legislation Overview and Historical Evolution

2.2 Latest Changes in Regulation

2.3 Legislation and Market Practice by Type of Insurance

2.3.1 Life insurance

2.3.2 Property insurance

2.3.3 Motor insurance

2.3.4 Liability insurance

2.3.5 Marine, aviation and transit insurance

2.3.6 Personal accident and health insurance

2.4 Compulsory Insurance

2.4.1 Motor third-party liability insurance

2.4.2 Workers’ compensation

2.4.3 Civil liability insurance for construction designers

2.4.4 Civil liability insurance of contractors

2.4.5 Civil liability insurance on auditor firms

2.4.6 Air carriers and aircraft operators insurance

2.4.7 Professional indemnity insurance for alternative investment fund managers

2.4.8 Clinical trials liability insurance

2.4.9 Professional liability insurance for lawyers

2.4.10 Professional civil liability insurance for insurance and reinsurance intermediaries

2.4.11 Professional civil liability insurance for insurance brokers

2.4.12 Liability for ships with respect to oil pollution

2.5 Supervision and Control

2.5.1 International Association of Insurance Supervisors

2.5.2 European Insurance and Occupational Pensions Authority

2.5.3 Bank of Lithuania

2.5.4 Federation of European Risk Management Associations

2.6 Non-Admitted Insurance Regulations

2.6.1 Overview

2.6.2 Intermediaries

2.6.3 Market practices

2.6.4 Fines and Penalties

2.7 Company Registration and Operations

2.7.1 Type of insurance organization

2.7.2 Establishing a local company

2.7.3 Foreign ownership

2.7.4 Types of license

2.7.5 Capital requirements

2.7.6 Solvency margin

2.7.7 Reserve requirements

2.7.8 Investment regulations

2.7.9 Statutory return requirements

2.7.10 Fee structure

2.8 Taxation

2.8.1 Insurance premium or policy taxation

2.8.2 Withholding taxes on premium paid overseas

2.8.3 Corporate tax

2.8.4 VAT

2.8.5 Captives

2.9 Legal System

2.9.1 Introduction

2.9.2 Access to court

2.9.3 Alternative dispute resolution

3 APPENDIX

For more information about this report visit https://www.researchandmarkets.com/research/zhj6bs/lithuania?w=4

View source version on businesswire.com:https://www.businesswire.com/news/home/20190307005866/en/

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Related Topics:Insurance

KEYWORD: LITHUANIA EUROPE

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: Research and Markets

Copyright Business Wire 2019.

PUB: 03/07/2019 05:02 PM/DISC: 03/07/2019 05:02 PM

http://www.businesswire.com/news/home/20190307005866/en