Market Guide: Life Insurance And Pensions In Norway 2006

Content

• Overview
• Catalyst
• Summary
• Executive Summary
• Following compound annual growth of 14.5% in the last five years, between 2006 and 2010, growth in the Norwegian life and pensions market is set to slow to 6.4%
• The Norwegian life and pensions market expanded by a compound annual rate of 14.5% between 2001 and 2005
• Slower growth in life insurance will produce lower compound annual growth in the total market between 2006 and 2010
• The market will continue to be shaped by EU legislation
• The market is led by Norwegian firms
• Many of the market leaders are subsidiaries of the largest financial services groups in Norway
• Market Overview
  • The Norwegian life and pensions market expanded by a compound annual rate of 14.5% between 2001 and 2005
  • Premium income increased at a compound annual rate of 14.5% between 2001 and 2005, primarily driven by growth in pensions
  • The proportion of premium income attributed to group policies has declined between 2001 and 2005
  • Premium income from unit-linked insurance has remained negligible throughout the 2001-2005 period despite substantial growth
  • Bonds account for almost half of the investment assets of life and pensions insurance companies in Norway
• Market Forecasts
  • The Norwegian life and pensions market is expected to expand by a compound annual rate of 6.4% between 2006 and 2010
  • Over the next 5 years, growth in premium income will increase at a compound annual rate of 6.4%
• Market Regulation
  • The market will continue to be shaped by EU legislation
  • The Norwegian Financial Supervisory Authority regulates financial markets in Norway, including life & pensions
  • The Norwegian regulator, Kredittilsynet, reduced the guaranteed interest rate in life insurance
  • Further amendments from Kredittilsynet include a compulsory occupational pension scheme in addition to new life insurance and insurance mediation acts
  • The national regulator has introduced legislation allowing employees stationed abroad to obtain membership to the National Insurance Scheme
  • The Norwegian parliament has introduced legislation on compulsory pension schemes
  • The Insurance Mediation Directive creates a single passport for insurance intermediaries and enhances consumer choice
  • Insurance companies which belong to financial conglomerates face additional supervisory requirements
  • Distance marketing rules define sales practices
  • Proposed anti-money laundering legislation implies an additional administrative burden for insurers
  • Upcoming laws will enhance consumer protection
  • Providers may be required to fund a new insurance guarantee scheme
• Competitive Market Structure
  • The market is led by Norwegian firms
  • The top 5 life and pensions insurers control 96% of the market, by premium income
• Market Leaders
  • Many of the market leaders are subsidiaries of the largest financial services groups in Norway
  • Vital & Vital Link is the life and pensions insurance market leader, based on premium income in 2005
  • Storebrand Liv & Forsikring trails the market leader in the life and pensions insurance sector
  • KLP ranks third among life and pensions insurance companies
  • Nordea Liv & Link is the fourth highest ranked life insurer by premium income
  • Sparebank 1 Liv & Fondsforsikring rounds out the top 5 life insurers
• Appendix
  • Definitions
  • Prudent Person Principle
  • Capital redemption policy / bond
  • Composite insurer
  • Defined contribution pension scheme
  • Defined benefits pension scheme
  • Group policy
  • Individual pension scheme
  • Individual policy
  • Life assurance
  • Occupational pension scheme
  • Pension insurance policy
  • Premium income
  • Regular premium
  • Single premium
  • Technical provisions
  • Traditional insurance
  • Unit-linked insurance
  • Further reading
  • Interactive Databases
  • Reports and Briefs
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: Life and pensions insurance premium income, segmented by product, EURm, 2001-2005
  • Table 2: Life and pensions insurance premium income, segmented by product, in percentages, 2001-2005
  • Table 3: Life and pensions insurance premium income, segmented by buyer, EURm, 2001-2005
  • Table 4: Life and pensions insurance premium income, segmented by buyer, in percentages, 2001-2005
  • Table 5: Life and pensions insurance premium income, segmented by investment risk, EURm, 2001-2005
  • Table 6: Life and pensions insurance premium income, segmented by investment risk, in percentages
  • Table 7: Investment assets of life and pensions insurance companies, EURm, 2001-2005
  • Table 8: Investment assets of life and pensions insurance companies, in percentages, 2001-2005
  • Table 9: Life and pensions insurance premium income, segmented by product, EURm, 2006-2010
  • Table 10: Life and pensions insurance premium income, segmented by product, in percentages, 2006-2010
  • Table 11: Top 5 life and pensions insurers by gross premium income, as at Dec 2005
  • Table 12: Figures for supervised entities, as at December 2005
• List of Figures
  • Figure 1: Pension premiums accounted for nearly two thirds of total premium income in 2005
  • Figure 2: Group policies account for 54% of life and pensions premium income in 2005
  • Figure 3: Premium income from unit-linked insurance has remained negligible throughout the 2001-2005 period despite substantial growth
  • Figure 4: Approximately half of investment assets have been held in bonds throughout the 2001-2005 period
  • Figure 5: Pensions will continue to account for the majority of premium income between 2006 and 2010
  • Figure 6: Vital & Vital Link leads the life and pensions sector in Norway, by premium income as at December 2005