Introduction

This report is most appropriate for companies looking for an overview of the life insurance and pensions markets in order to assess the level of market opportunity (using our market data and forecasts), regulatory barriers and opportunities, and level of competition in the market. For more detailed market data please refer to Datamonitor's European Life and Pensions Interactive Database 2006.

Scope

Presents competitor market data for life insurance and pensions companies; Assesses regulatory barriers and opportunities; 5 years historic data from 2001-5 and 5 year forecast to 2010.

Highlights

Premium income increased at a compound annual rate of approximately 14.5% between 2001 and 2005, primarily driven by growth in pensions. Bonds account for nearly half of the investment assets of life and pensions insurance companies in Norway. The national regulator has introduced legislation allowing employees stationed abroad to obtain membership to the National Insurance Scheme.

Reasons to Purchase

Get an overview of the life and pensions market, including past growth and forecast growth; Assess regulatory barriers and opportunities affecting life insurance and pensions in this country; Analyze competition from life insurance companies.

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
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% 2
The Norwegian life and pensions market expanded by a compound annual rate of 14.5% between 2001 and 2005 2
Slower growth in life insurance will produce lower compound annual growth in the total market between 2006 and 2010 2
The market will continue to be shaped by EU legislation 2
The market is led by Norwegian firms 3
Many of the market leaders are subsidiaries of the largest financial services groups in Norway 3
Table of Contents 4
Table of figures 5
Table of tables 6
MARKET OVERVIEW 7
The Norwegian life and pensions market expanded by a compound annual rate of 14.5% between 2001 and 2005 7
Premium income increased at a compound annual rate of 14.5% between 2001 and 2005, primarily driven by growth in pensions 7
The proportion of premium income attributed to group policies has declined between 2001 and 2005 9
Premium income from unit-linked insurance has remained negligible throughout the 2001-2005 period despite substantial growth 10
Bonds account for almost half of the investment assets of life and pensions insurance companies in Norway 12
MARKET FORECASTS 14
The Norwegian life and pensions market is expected to expand by a compound annual rate of 6.4% between 2006 and 2010 14
Over the next 5 years, growth in premium income will increase at a compound annual rate of 6.4% 14
MARKET REGULATION 16
The market will continue to be shaped by EU legislation 16
The Norwegian Financial Supervisory Authority regulates financial markets in Norway, including life & pensions 16
The Norwegian regulator, Kredittilsynet, reduced the guaranteed interest rate in life insurance 17
Further amendments from Kredittilsynet include a compulsory occupational pension scheme in addition to new life insurance and insurance mediation acts 17
The national regulator has introduced legislation allowing employees stationed abroad to obtain membership to the National Insurance Scheme 18
The Norwegian parliament has introduced legislation on compulsory pension schemes 18
The Insurance Mediation Directive creates a single passport for insurance intermediaries and enhances consumer choice 18
Insurance companies which belong to financial conglomerates face additional supervisory requirements 19
Distance marketing rules define sales practices 19
Proposed anti-money laundering legislation implies an additional administrative burden for insurers 19
Upcoming laws will enhance consumer protection 19
Providers may be required to fund a new insurance guarantee scheme 19
COMPETITIVE MARKET STRUCTURE 21
The market is led by Norwegian firms 21
The top 5 life and pensions insurers control 96% of the market, by premium income 21
MARKET LEADERS 23
Many of the market leaders are subsidiaries of the largest financial services groups in Norway 23
Vital & Vital Link is the life and pensions insurance market leader, based on premium income in 2005 23
Storebrand Liv & Forsikring trails the market leader in the life and pensions insurance sector 23
KLP ranks third among life and pensions insurance companies 24
Nordea Liv & Link is the fourth highest ranked life insurer by premium income 24
Sparebank 1 Liv & Fondsforsikring rounds out the top 5 life insurers 24
APPENDIX 25
Definitions 25
Prudent Person Principle 25
Capital redemption policy / bond 25
Composite insurer 25
Defined contribution pension scheme 25
Defined benefits pension scheme 25
Group policy 25
Individual pension scheme 25
Individual policy 25
Life assurance 25
Occupational pension scheme 26
Pension insurance policy 26
Premium income 26
Regular premium 26
Single premium 26
Technical provisions 26
Traditional insurance 26
Unit-linked insurance 26
Further reading 27
Interactive Databases 27
Reports and Briefs 27
Ask the analyst 28
Datamonitor consulting 28
Disclaimer 28
List of Tables
Table 1: Life and pensions insurance premium income, segmented by product, EURm, 2001-2005 8
Table 2: Life and pensions insurance premium income, segmented by product, in percentages, 2001-2005 8
Table 3: Life and pensions insurance premium income, segmented by buyer, EURm, 2001-2005 9
Table 4: Life and pensions insurance premium income, segmented by buyer, in percentages, 2001-2005 10
Table 5: Life and pensions insurance premium income, segmented by investment risk, EURm, 2001-2005 11
Table 6: Life and pensions insurance premium income, segmented by investment risk, in percentages 11
Table 7: Investment assets of life and pensions insurance companies, EURm, 2001-2005 13
Table 8: Investment assets of life and pensions insurance companies, in percentages, 2001-2005 13
Table 9: Life and pensions insurance premium income, segmented by product, EURm, 2006-2010 15
Table 10: Life and pensions insurance premium income, segmented by product, in percentages, 2006-2010 15
Table 11: Top 5 life and pensions insurers by gross premium income, as at Dec 2005 22
Table 12: Figures for supervised entities, as at December 2005 22
List of Figures
Figure 1: Pension premiums accounted for nearly two thirds of total premium income in 2005 7
Figure 2: Group policies account for 54% of life and pensions premium income in 2005 9
Figure 3: Premium income from unit-linked insurance has remained negligible throughout the 2001-2005 period despite substantial growth 10
Figure 4: Approximately half of investment assets have been held in bonds throughout the 2001-2005 period 12
Figure 5: Pensions will continue to account for the majority of premium income between 2006 and 2010 14
Figure 6: Vital & Vital Link leads the life and pensions sector in Norway, by premium income as at December 2005 21