Suchergebnisse

Problematics of Online Insurance Contracts Insurance is not only a form of business, but a unified combination of economic, financial and social relations, as it involves offering consumer protection services to those in distress. However, the range of online insurance products poses certain legal problems associated with pre-contractual relationships. The unique nature of these contracts stems from the policyholder's position as the weaker party in comparison with the insurer, as well as from the demand for the policyholder to fulfill their obligations. The legislator who has created the existing legal regulations has established that the policyholder and the insurer have mutual rights and obligations and that the fulfillment thereof is mandatory. Prior to concluding the insurance contract, the insurer is required to familiarize the policyholder with the terms and conditions thereof, but this is a mere legal fiction which is not implemented in actual mutual relations. Despite efforts to present insurance rules and non-standard conditions in a more appropriate manner, these efforts have so far been unsuccessful. A reference to a particular document which is integral to the insurance contract is insufficient for providing the customer with an appropriate amount of information. Such a position is expressed, inter alia, in the case-law, which, in the author's opinion, must be adhered to. In addition, insurance contracts concluded by electronic means often fall short of another requirement, in that they lack of proper verification. Along with the due expression of the party's will, appropriate verification implies the electronic equivalent of the traditional signature, known as an electronic signature, which is used to verify the document's authenticity. Proper authentication with an electronic signature would prevent identity theft for the purpose of engaging in illicit action. Although the policyholder is interested in safeguarding their insurance cover, this does not necessarily mean that their identity, as well as that of any other person, should be presumed. These have also been expressed by overseas authors and are believed to be correct, since, before a person's identity is properly verified, the insurer cannot be certain that they are dealing with the same individual. The problem is that insurers do not demand proper identity verification while concluding contracts by electronic (automated) means, i.e. they do not require the contract to be confirmed with an electronic signature. Thus, the fact that an insurance contract has been concluded in an automated manner means, first and foremost, that its legal force cannot be called into question merely because it was drawn up electronically. Secondly, a document prepared by electronic means is subject to the same legal principles as one that was prepared physically. It should be noted that insurers frequently fail to perform their duties properly, whereas policyholders are required to provide as much detail as possible. Thirdly, an insurance contract may be concluded without any physical interaction between individuals. Among other things, insurance contracts with consumers may be concluded by logging into an online system, which has resulted in a decline in the policyholder's role in the insurance relationship owing to their inability to influence the content of the standard terms and conditions. Nevertheless, the legislator is ready to protect policyholder rights using the safeguards provided for in the relevant legislation. To summarize, an insurance contract is a unique contract between the policyholder and the insurer. In the event that the insurance contract is concluded in an automated manner, the parties are not exempted from performing their duties. There are problems with concluding insurance contracts by automated means not only by e-mail, but also directly on the insurer's website.

Problematics of Online Insurance Contracts Insurance is not only a form of business, but a unified combination of economic, financial and social relations, as it involves offering consumer protection services to those in distress. However, the range of online insurance products poses certain legal problems associated with pre-contractual relationships. The unique nature of these contracts stems from the policyholder's position as the weaker party in comparison with the insurer, as well as from the demand for the policyholder to fulfill their obligations. The legislator who has created the existing legal regulations has established that the policyholder and the insurer have mutual rights and obligations and that the fulfillment thereof is mandatory. Prior to concluding the insurance contract, the insurer is required to familiarize the policyholder with the terms and conditions thereof, but this is a mere legal fiction which is not implemented in actual mutual relations. Despite efforts to present insurance rules and non-standard conditions in a more appropriate manner, these efforts have so far been unsuccessful. A reference to a particular document which is integral to the insurance contract is insufficient for providing the customer with an appropriate amount of information. Such a position is expressed, inter alia, in the case-law, which, in the author's opinion, must be adhered to. In addition, insurance contracts concluded by electronic means often fall short of another requirement, in that they lack of proper verification. Along with the due expression of the party's will, appropriate verification implies the electronic equivalent of the traditional signature, known as an electronic signature, which is used to verify the document's authenticity. Proper authentication with an electronic signature would prevent identity theft for the purpose of engaging in illicit action. Although the policyholder is interested in safeguarding their insurance cover, this does not necessarily mean that their identity, as well as that of any other person, should be presumed. These have also been expressed by overseas authors and are believed to be correct, since, before a person's identity is properly verified, the insurer cannot be certain that they are dealing with the same individual. The problem is that insurers do not demand proper identity verification while concluding contracts by electronic (automated) means, i.e. they do not require the contract to be confirmed with an electronic signature. Thus, the fact that an insurance contract has been concluded in an automated manner means, first and foremost, that its legal force cannot be called into question merely because it was drawn up electronically. Secondly, a document prepared by electronic means is subject to the same legal principles as one that was prepared physically. It should be noted that insurers frequently fail to perform their duties properly, whereas policyholders are required to provide as much detail as possible. Thirdly, an insurance contract may be concluded without any physical interaction between individuals. Among other things, insurance contracts with consumers may be concluded by logging into an online system, which has resulted in a decline in the policyholder's role in the insurance relationship owing to their inability to influence the content of the standard terms and conditions. Nevertheless, the legislator is ready to protect policyholder rights using the safeguards provided for in the relevant legislation. To summarize, an insurance contract is a unique contract between the policyholder and the insurer. In the event that the insurance contract is concluded in an automated manner, the parties are not exempted from performing their duties. There are problems with concluding insurance contracts by automated means not only by e-mail, but also directly on the insurer's website.

Problematics of Online Insurance Contracts Insurance is not only a form of business, but a unified combination of economic, financial and social relations, as it involves offering consumer protection services to those in distress. However, the range of online insurance products poses certain legal problems associated with pre-contractual relationships. The unique nature of these contracts stems from the policyholder's position as the weaker party in comparison with the insurer, as well as from the demand for the policyholder to fulfill their obligations. The legislator who has created the existing legal regulations has established that the policyholder and the insurer have mutual rights and obligations and that the fulfillment thereof is mandatory. Prior to concluding the insurance contract, the insurer is required to familiarize the policyholder with the terms and conditions thereof, but this is a mere legal fiction which is not implemented in actual mutual relations. Despite efforts to present insurance rules and non-standard conditions in a more appropriate manner, these efforts have so far been unsuccessful. A reference to a particular document which is integral to the insurance contract is insufficient for providing the customer with an appropriate amount of information. Such a position is expressed, inter alia, in the case-law, which, in the author's opinion, must be adhered to. In addition, insurance contracts concluded by electronic means often fall short of another requirement, in that they lack of proper verification. Along with the due expression of the party's will, appropriate verification implies the electronic equivalent of the traditional signature, known as an electronic signature, which is used to verify the document's authenticity. Proper authentication with an electronic signature would prevent identity theft for the purpose of engaging in illicit action. Although the policyholder is interested in safeguarding their insurance cover, this does not necessarily mean that their identity, as well as that of any other person, should be presumed. These have also been expressed by overseas authors and are believed to be correct, since, before a person's identity is properly verified, the insurer cannot be certain that they are dealing with the same individual. The problem is that insurers do not demand proper identity verification while concluding contracts by electronic (automated) means, i.e. they do not require the contract to be confirmed with an electronic signature. Thus, the fact that an insurance contract has been concluded in an automated manner means, first and foremost, that its legal force cannot be called into question merely because it was drawn up electronically. Secondly, a document prepared by electronic means is subject to the same legal principles as one that was prepared physically. It should be noted that insurers frequently fail to perform their duties properly, whereas policyholders are required to provide as much detail as possible. Thirdly, an insurance contract may be concluded without any physical interaction between individuals. Among other things, insurance contracts with consumers may be concluded by logging into an online system, which has resulted in a decline in the policyholder's role in the insurance relationship owing to their inability to influence the content of the standard terms and conditions. Nevertheless, the legislator is ready to protect policyholder rights using the safeguards provided for in the relevant legislation. To summarize, an insurance contract is a unique contract between the policyholder and the insurer. In the event that the insurance contract is concluded in an automated manner, the parties are not exempted from performing their duties. There are problems with concluding insurance contracts by automated means not only by e-mail, but also directly on the insurer's website.

Problematics of Online Insurance Contracts Insurance is not only a form of business, but a unified combination of economic, financial and social relations, as it involves offering consumer protection services to those in distress. However, the range of online insurance products poses certain legal problems associated with pre-contractual relationships. The unique nature of these contracts stems from the policyholder's position as the weaker party in comparison with the insurer, as well as from the demand for the policyholder to fulfill their obligations. The legislator who has created the existing legal regulations has established that the policyholder and the insurer have mutual rights and obligations and that the fulfillment thereof is mandatory. Prior to concluding the insurance contract, the insurer is required to familiarize the policyholder with the terms and conditions thereof, but this is a mere legal fiction which is not implemented in actual mutual relations. Despite efforts to present insurance rules and non-standard conditions in a more appropriate manner, these efforts have so far been unsuccessful. A reference to a particular document which is integral to the insurance contract is insufficient for providing the customer with an appropriate amount of information. Such a position is expressed, inter alia, in the case-law, which, in the author's opinion, must be adhered to. In addition, insurance contracts concluded by electronic means often fall short of another requirement, in that they lack of proper verification. Along with the due expression of the party's will, appropriate verification implies the electronic equivalent of the traditional signature, known as an electronic signature, which is used to verify the document's authenticity. Proper authentication with an electronic signature would prevent identity theft for the purpose of engaging in illicit action. Although the policyholder is interested in safeguarding their insurance cover, this does not necessarily mean that their identity, as well as that of any other person, should be presumed. These have also been expressed by overseas authors and are believed to be correct, since, before a person's identity is properly verified, the insurer cannot be certain that they are dealing with the same individual. The problem is that insurers do not demand proper identity verification while concluding contracts by electronic (automated) means, i.e. they do not require the contract to be confirmed with an electronic signature. Thus, the fact that an insurance contract has been concluded in an automated manner means, first and foremost, that its legal force cannot be called into question merely because it was drawn up electronically. Secondly, a document prepared by electronic means is subject to the same legal principles as one that was prepared physically. It should be noted that insurers frequently fail to perform their duties properly, whereas policyholders are required to provide as much detail as possible. Thirdly, an insurance contract may be concluded without any physical interaction between individuals. Among other things, insurance contracts with consumers may be concluded by logging into an online system, which has resulted in a decline in the policyholder's role in the insurance relationship owing to their inability to influence the content of the standard terms and conditions. Nevertheless, the legislator is ready to protect policyholder rights using the safeguards provided for in the relevant legislation. To summarize, an insurance contract is a unique contract between the policyholder and the insurer. In the event that the insurance contract is concluded in an automated manner, the parties are not exempted from performing their duties. There are problems with concluding insurance contracts by automated means not only by e-mail, but also directly on the insurer's website.

Unit-Linked Life Insurance: Regulatory Issues SUMMARY Unit – linked life insurance is a permanent, cumulative life insurance, which essentially involves two different transactions, i. e. insurance and investment. In this case, part of the insurance premium is invested and the policyholder is responsible for the investment. This type insurance has conceptual differences not only from traditional life insurance, but also from financial instruments. Although there is an opinion that unit – linked life insurance does not correspond to the functions of the doctrine, the author of the Master's thesis is of the opinion that these functions are not fully implemented in accordance with the violations of legal requirements. Among other things, in the Master's thesis is analysed the issues of unit - linked life insurance regulation that was distinguished of the Bank of Lithuania. As well as the regulatory issues that was identified at European Union level. Analysis of these problems shows that most of these regulatory issues are inadequately defined, and that the proposed improvements in regulation are ineffective and should be considered as superfluous in the light of the legal regulations in force at that time. Among other things, the reform of the Law on Insurance of the Republic of Lithuania is considered as not guaranteeing real protection of consumer rights. Thus, one of the main problems of unit - linked life insurance, which in fact creates the major part of the problems identified by the Bank of Lithuania, is finally considered by the author. In the third part is presented and analysed possible ways of solving existing regulatory issues, which were not identified by the Bank of Lithuania and not established in recently enacted European Union legislation, i. e. Directive and Regulation.

Unit-Linked Life Insurance: Regulatory Issues SUMMARY Unit – linked life insurance is a permanent, cumulative life insurance, which essentially involves two different transactions, i. e. insurance and investment. In this case, part of the insurance premium is invested and the policyholder is responsible for the investment. This type insurance has conceptual differences not only from traditional life insurance, but also from financial instruments. Although there is an opinion that unit – linked life insurance does not correspond to the functions of the doctrine, the author of the Master's thesis is of the opinion that these functions are not fully implemented in accordance with the violations of legal requirements. Among other things, in the Master's thesis is analysed the issues of unit - linked life insurance regulation that was distinguished of the Bank of Lithuania. As well as the regulatory issues that was identified at European Union level. Analysis of these problems shows that most of these regulatory issues are inadequately defined, and that the proposed improvements in regulation are ineffective and should be considered as superfluous in the light of the legal regulations in force at that time. Among other things, the reform of the Law on Insurance of the Republic of Lithuania is considered as not guaranteeing real protection of consumer rights. Thus, one of the main problems of unit - linked life insurance, which in fact creates the major part of the problems identified by the Bank of Lithuania, is finally considered by the author. In the third part is presented and analysed possible ways of solving existing regulatory issues, which were not identified by the Bank of Lithuania and not established in recently enacted European Union legislation, i. e. Directive and Regulation.

Unit-Linked Life Insurance: Regulatory Issues SUMMARY Unit – linked life insurance is a permanent, cumulative life insurance, which essentially involves two different transactions, i. e. insurance and investment. In this case, part of the insurance premium is invested and the policyholder is responsible for the investment. This type insurance has conceptual differences not only from traditional life insurance, but also from financial instruments. Although there is an opinion that unit – linked life insurance does not correspond to the functions of the doctrine, the author of the Master's thesis is of the opinion that these functions are not fully implemented in accordance with the violations of legal requirements. Among other things, in the Master's thesis is analysed the issues of unit - linked life insurance regulation that was distinguished of the Bank of Lithuania. As well as the regulatory issues that was identified at European Union level. Analysis of these problems shows that most of these regulatory issues are inadequately defined, and that the proposed improvements in regulation are ineffective and should be considered as superfluous in the light of the legal regulations in force at that time. Among other things, the reform of the Law on Insurance of the Republic of Lithuania is considered as not guaranteeing real protection of consumer rights. Thus, one of the main problems of unit - linked life insurance, which in fact creates the major part of the problems identified by the Bank of Lithuania, is finally considered by the author. In the third part is presented and analysed possible ways of solving existing regulatory issues, which were not identified by the Bank of Lithuania and not established in recently enacted European Union legislation, i. e. Directive and Regulation.

Unit-Linked Life Insurance: Regulatory Issues SUMMARY Unit – linked life insurance is a permanent, cumulative life insurance, which essentially involves two different transactions, i. e. insurance and investment. In this case, part of the insurance premium is invested and the policyholder is responsible for the investment. This type insurance has conceptual differences not only from traditional life insurance, but also from financial instruments. Although there is an opinion that unit – linked life insurance does not correspond to the functions of the doctrine, the author of the Master's thesis is of the opinion that these functions are not fully implemented in accordance with the violations of legal requirements. Among other things, in the Master's thesis is analysed the issues of unit - linked life insurance regulation that was distinguished of the Bank of Lithuania. As well as the regulatory issues that was identified at European Union level. Analysis of these problems shows that most of these regulatory issues are inadequately defined, and that the proposed improvements in regulation are ineffective and should be considered as superfluous in the light of the legal regulations in force at that time. Among other things, the reform of the Law on Insurance of the Republic of Lithuania is considered as not guaranteeing real protection of consumer rights. Thus, one of the main problems of unit - linked life insurance, which in fact creates the major part of the problems identified by the Bank of Lithuania, is finally considered by the author. In the third part is presented and analysed possible ways of solving existing regulatory issues, which were not identified by the Bank of Lithuania and not established in recently enacted European Union legislation, i. e. Directive and Regulation.

During the crisis in 2008, EU institutions and leaders of member states understood, that existing deposit insurance system is inefficient and that it required necessary changes. In order to prevent unreasonable expenditures of EU member states, burden of debt and irresponsibility of banks, the deposit insurance system directive was adopted in 1994; it had been renewed several times in 2009 and 2014, however no significant changes on financial market had happened. The main reason for that were the emerged economic and cultural differences between EU member states, which depreciated depositor's trust in banks and deposit insurance system itself. The object of research: the decision making process of deposit insurance directive, changes to directive by EU institutions and execution models in European Union. The objective of the study: to analyze the reasons for emergence of deposit insurance directive, improvement steps and processes, that influence the financial sector; and to name mutual barriers between EU institution after analysis of models. Tasks of the study: a) to define the concept of European deposit insurance and evaluate its influence to banking union; b) to research the decision making process of deposit insurance directive and the impact EU institutions had on it; c) to review the impact Germany had on decision making process of deposit insurance directive; d) to analyze the models of deposit insurance and political abilities to adopt them in Europe. Various research methods are used in the study: analytical, descriptive and comparative as well as document and statistical analysis methods. They helped to research the relations between EU institutions, adopting deposit insurance directive and it`s improvements. At the same time summarized results for reasons of directive's inefficiency are given. After the analysis of the EU documents, the conclusion is made, that in order to create a common deposit insurance system in all Europe, the possibility to improve political decision making process should be considered.

During the crisis in 2008, EU institutions and leaders of member states understood, that existing deposit insurance system is inefficient and that it required necessary changes. In order to prevent unreasonable expenditures of EU member states, burden of debt and irresponsibility of banks, the deposit insurance system directive was adopted in 1994; it had been renewed several times in 2009 and 2014, however no significant changes on financial market had happened. The main reason for that were the emerged economic and cultural differences between EU member states, which depreciated depositor's trust in banks and deposit insurance system itself. The object of research: the decision making process of deposit insurance directive, changes to directive by EU institutions and execution models in European Union. The objective of the study: to analyze the reasons for emergence of deposit insurance directive, improvement steps and processes, that influence the financial sector; and to name mutual barriers between EU institution after analysis of models. Tasks of the study: a) to define the concept of European deposit insurance and evaluate its influence to banking union; b) to research the decision making process of deposit insurance directive and the impact EU institutions had on it; c) to review the impact Germany had on decision making process of deposit insurance directive; d) to analyze the models of deposit insurance and political abilities to adopt them in Europe. Various research methods are used in the study: analytical, descriptive and comparative as well as document and statistical analysis methods. They helped to research the relations between EU institutions, adopting deposit insurance directive and it`s improvements. At the same time summarized results for reasons of directive's inefficiency are given. After the analysis of the EU documents, the conclusion is made, that in order to create a common deposit insurance system in all Europe, the possibility to improve political decision making process should be considered.

The scholastic problem is reliability of Lithuanian insurance market. Lithuanian insurance market is sensitive to changes in the external environment; therefore this threatens the financial stability of the insurance market. Lithuanian insurance market is in stagnation period, this is confirmed by lower indexes of insurance development. In order to evaluate the position of the country's life and nonlife insurance market more accurately, it was expedient to evaluate the quantitative influence of the main economics and social factors. Therefore, calculations presented in the paper have been done on the basis of available statistical data – indirect indexes. The subject of the research is indexes of Lithuanian insurance market. The aim of the research is to analyse the processes of Lithuanian insurance market. Conclusions and results of the work are: the analysis of external environment helps estimate the main forces that insurance market cannot control but that have influence on financial indexes. The results showed that the main factors that have influence on growth of life insurance are inflation level and disturbance in international financial markets, and the main factors that have influence on growth of non-life insurance are decreasing demand of new cars, high number of damages, changing situation in the building market and elemental forces. The stagnation in Lithuanian insurance market is due to economic and social conditions that are disclosed by statistics indexes. The global economy experienced a slowdown and rising inflation, which was mainly caused by the rapid rise in food and energy prices. Course of events was related to international financial market crisis. The dramatic crisis in the international financial markets and its global repercussions are major challenges to the liberal economic system, demanding a rapid reaction from government and far-reaching efforts. Fluctuations in stock quotations have a direct impact on the profitability of insurance undertakings as well as the pension funds managed by life insurance undertakings that invest at least part of their funds in shares. The main economic factor is increasing unemployment that was influenced by the economic decline and by the rapid decrease in the number of job vacancies. Economic issues pointed up limited availability of wage restraint; therefore rising prices and falling purchasing power force residents to procure only indispensable commodities and services. The working capital turnover as well as slackened off settlements between business subjects impeded business conditions. Therefore these factors show that unfavourable situation in financial markets had a direct impact on the slowdown in the rate of growth of unit-linked life and nonlife insurance.

The scholastic problem is reliability of Lithuanian insurance market. Lithuanian insurance market is sensitive to changes in the external environment; therefore this threatens the financial stability of the insurance market. Lithuanian insurance market is in stagnation period, this is confirmed by lower indexes of insurance development. In order to evaluate the position of the country's life and nonlife insurance market more accurately, it was expedient to evaluate the quantitative influence of the main economics and social factors. Therefore, calculations presented in the paper have been done on the basis of available statistical data – indirect indexes. The subject of the research is indexes of Lithuanian insurance market. The aim of the research is to analyse the processes of Lithuanian insurance market. Conclusions and results of the work are: the analysis of external environment helps estimate the main forces that insurance market cannot control but that have influence on financial indexes. The results showed that the main factors that have influence on growth of life insurance are inflation level and disturbance in international financial markets, and the main factors that have influence on growth of non-life insurance are decreasing demand of new cars, high number of damages, changing situation in the building market and elemental forces. The stagnation in Lithuanian insurance market is due to economic and social conditions that are disclosed by statistics indexes. The global economy experienced a slowdown and rising inflation, which was mainly caused by the rapid rise in food and energy prices. Course of events was related to international financial market crisis. The dramatic crisis in the international financial markets and its global repercussions are major challenges to the liberal economic system, demanding a rapid reaction from government and far-reaching efforts. Fluctuations in stock quotations have a direct impact on the profitability of insurance undertakings as well as the pension funds managed by life insurance undertakings that invest at least part of their funds in shares. The main economic factor is increasing unemployment that was influenced by the economic decline and by the rapid decrease in the number of job vacancies. Economic issues pointed up limited availability of wage restraint; therefore rising prices and falling purchasing power force residents to procure only indispensable commodities and services. The working capital turnover as well as slackened off settlements between business subjects impeded business conditions. Therefore these factors show that unfavourable situation in financial markets had a direct impact on the slowdown in the rate of growth of unit-linked life and nonlife insurance.

The scholastic problem is reliability of Lithuanian insurance market. Lithuanian insurance market is sensitive to changes in the external environment; therefore this threatens the financial stability of the insurance market. Lithuanian insurance market is in stagnation period, this is confirmed by lower indexes of insurance development. In order to evaluate the position of the country's life and nonlife insurance market more accurately, it was expedient to evaluate the quantitative influence of the main economics and social factors. Therefore, calculations presented in the paper have been done on the basis of available statistical data – indirect indexes. The subject of the research is indexes of Lithuanian insurance market. The aim of the research is to analyse the processes of Lithuanian insurance market. Conclusions and results of the work are: the analysis of external environment helps estimate the main forces that insurance market cannot control but that have influence on financial indexes. The results showed that the main factors that have influence on growth of life insurance are inflation level and disturbance in international financial markets, and the main factors that have influence on growth of non-life insurance are decreasing demand of new cars, high number of damages, changing situation in the building market and elemental forces. The stagnation in Lithuanian insurance market is due to economic and social conditions that are disclosed by statistics indexes. The global economy experienced a slowdown and rising inflation, which was mainly caused by the rapid rise in food and energy prices. Course of events was related to international financial market crisis. The dramatic crisis in the international financial markets and its global repercussions are major challenges to the liberal economic system, demanding a rapid reaction from government and far-reaching efforts. Fluctuations in stock quotations have a direct impact on the profitability of insurance undertakings as well as the pension funds managed by life insurance undertakings that invest at least part of their funds in shares. The main economic factor is increasing unemployment that was influenced by the economic decline and by the rapid decrease in the number of job vacancies. Economic issues pointed up limited availability of wage restraint; therefore rising prices and falling purchasing power force residents to procure only indispensable commodities and services. The working capital turnover as well as slackened off settlements between business subjects impeded business conditions. Therefore these factors show that unfavourable situation in financial markets had a direct impact on the slowdown in the rate of growth of unit-linked life and nonlife insurance.

The scholastic problem is reliability of Lithuanian insurance market. Lithuanian insurance market is sensitive to changes in the external environment; therefore this threatens the financial stability of the insurance market. Lithuanian insurance market is in stagnation period, this is confirmed by lower indexes of insurance development. In order to evaluate the position of the country's life and nonlife insurance market more accurately, it was expedient to evaluate the quantitative influence of the main economics and social factors. Therefore, calculations presented in the paper have been done on the basis of available statistical data – indirect indexes. The subject of the research is indexes of Lithuanian insurance market. The aim of the research is to analyse the processes of Lithuanian insurance market. Conclusions and results of the work are: the analysis of external environment helps estimate the main forces that insurance market cannot control but that have influence on financial indexes. The results showed that the main factors that have influence on growth of life insurance are inflation level and disturbance in international financial markets, and the main factors that have influence on growth of non-life insurance are decreasing demand of new cars, high number of damages, changing situation in the building market and elemental forces. The stagnation in Lithuanian insurance market is due to economic and social conditions that are disclosed by statistics indexes. The global economy experienced a slowdown and rising inflation, which was mainly caused by the rapid rise in food and energy prices. Course of events was related to international financial market crisis. The dramatic crisis in the international financial markets and its global repercussions are major challenges to the liberal economic system, demanding a rapid reaction from government and far-reaching efforts. Fluctuations in stock quotations have a direct impact on the profitability of insurance undertakings as well as the pension funds managed by life insurance undertakings that invest at least part of their funds in shares. The main economic factor is increasing unemployment that was influenced by the economic decline and by the rapid decrease in the number of job vacancies. Economic issues pointed up limited availability of wage restraint; therefore rising prices and falling purchasing power force residents to procure only indispensable commodities and services. The working capital turnover as well as slackened off settlements between business subjects impeded business conditions. Therefore these factors show that unfavourable situation in financial markets had a direct impact on the slowdown in the rate of growth of unit-linked life and nonlife insurance.

It has been four years since the Law on National Social Insurance Pensions came into force. It is now possible to make some conclusions about the System's problems and it's likely future development. This article analyses the long-term (1999-2030) development of the National Social Insurance System. The System's forecast development is based on a modified model constructed by the World Bank researchers in 1993-1994. The earlier model required some major modifications in order to serve for the forecasting purposes. Since the model was first constructed: a) new demographic data has become available; b) macroeconomic inputs were adjusted to reflect the country's current situation; c) calculation of old age pension benefits was modified to conform with the new legal environment; d) calculation of the other pension benefits was modified; and e) two new categories of widows and orphans pensions were included into the model. Two possible scenarios for the System's budget are presented in the article: 1) The pension age remains as it is specified in current legislation, 2) The pension age is raised to 65 for both men and wome