Market Guide: Life Insurance and Pensions in Ireland 2006

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Following compound annual growth of 8% in the last five years, between 2006 and 2010, growth in the Irish life and pensions market is set to slow to 5.7%
    • The Irish life and pensions market expanded by a compound annual rate of 8% between 2001 and 2005
    • Slower growth in pensions 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 Irish firms
    • Among the market leaders, banking and insurance groups alike rely on distribution through bank networks and intermediaries
• Table of Contents
• Table of figures
• Table of tables
• MARKET OVERVIEW
  • The Irish life and pensions market expanded by a compound annual rate of 8% between 2001 and 2005
    • Premium income increased at a compound annual rate of 8% between 2001 and 2005, primarily driven by growth in pensions
    • The proportional distribution of premium income between group and individual policies has been unchanged between 2001 and 2005
    • Following a sharp decline in 2002, premium income from unit-linked insurance increased from 2003 onwards
    • Linked assets account for the single highest proportion of the investment assets of life and pensions insurance companies
• MARKET FORECASTS
  • Slower growth in pensions will produce lower compound annual growth in the total market between 2006 and 2010
    • Over the next 5 years, premium income is set to grow at a compound annual rate of 5.7%, compared to 8% growth between 2001 and 2005
• MARKET REGULATION
  • The market will continue to be shaped by EU legislation
    • The Irish Financial Services Regulatory Authority (Financial Regulator) regulates the life insurance and pensions sector
    • Recent legislation enhances consumer protection
    • 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 Irish firms
    • Irish firms dominate the domestic market by number
    • The top 5 life and pensions insurers control 75% of the market, by premium income
    • Brokers generated more than half of annual premium new business in 2005
    • At 44%, brokers accounted for the single highest proportion of new single premium business
• MARKET LEADERS
  • Among the market leaders, banking and insurance groups alike rely on distribution through bank networks and intermediaries
    • Irish Life is the life and pensions insurance market leader, based on premium income in 2005
    • BoI Life trails the market leader in the life and pensions insurance sector
    • Hibernian Life ranks third among life and pensions insurance companies
    • Ark Life is the fourth highest ranked life insurer by premium income
    • Eagle Star Life rounds out the top 5 life insurers
• APPENDIX
  • Definitions
    • 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: Number of life insurance providers segmented by type, as at Dec 2005
    • Table 12: Top 5 life and pensions insurers by gross premium income, as at Dec 2005
    • Table 13: Life insurance and pensions new business annual premium income, segmented by distribution channel, in percentages, Jan-Dec 2005
    • Table 14: Life insurance and pensions new business single premium income, segmented by distribution channel, in percentages, Jan-Dec 2005
  • List of Figures
    • Figure 1: Life premiums accounted for 56% of total premium income in 2005
    • Figure 2: Individual policies account for the majority of life and pensions premium income
    • Figure 3: Growth in non-unit linked premium income has been variable between 2001 and 2005, although the compound annual rate exceeded 19%
    • Figure 4: The proportion of investment assets held in linked assets has been increasing steadily
    • Figure 5: Pensions will continue to account for an increasing proportion of premium income between 2006 and 2010
    • Figure 6: 84% of all life and pensions providers are Irish firms
    • Figure 7: Irish Life leads the life and pensions sector in Ireland, by premium income
    • Figure 8: Tied agents, employees and company representatives accounted for 40% of annual premium new business
    • Figure 9: Direct sales represented just under one-quarter of new single premium business