New civil code expected to boost demand for liability cover

The Lithuanian non-life market is one of the smallest in the region, and in Europe generally, but the substantial increase in income due to compulsory motor third party liability in 2002 makes Lithuania the largest in the Baltic states. In addition, the statistics do not fully reflect the real size of the insurance market as a number of large risks (aviation and property, for example) are placed abroad on a freedom of services basis and the premium income is not recorded locally

In November 2006 there were 14 active non-life insurers or groups in the Lithuanian market. Of this number two were classed as credit insurers and one was state owned. A small number of companies are quoted on the stock market but otherwise all are privately owned. The market is dominated by the former state owned insurer, Lietuvos Draudimas, which had a market share of about 35% in 2005 and which is owned by Codan, Denmark.