Market Guide: Life Insurance and Pensions in Denmark 2006

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Following compound annual growth of 7.1% in the last five years, between 2006 and 2010, growth in the Danish life and pensions market will be more or less the same
    • The Danish life and pensions market expanded by a compound annual rate of 7.1% 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 Danish firms
    • Among the market leaders, most are specialist life & pensions firms
• Table of Contents
• Table of figures
• Table of tables
• MARKET OVERVIEW
  • The Danish life and pensions market expanded by a compound annual rate of 7.1% between 2001 and 2005
    • Premium income increased at a compound annual rate of 7.1% between 2001 and 2005, primarily driven by growth in pensions
    • The proportional distribution of premium income between group and individual policies has remained relatively unchanged between 2001 and 2005
    • Premium income from unit-linked insurance has increased slightly throughout the 2001-2005 period
    • Bonds account for the single highest proportion of the investment assets of life and pensions insurance companies
• MARKET FORECASTS
  • The Danish life and pensions market is expected to expand by a compound annual rate of 7.0% between 2006 and 2010
    • Over the next 5 years, growth in premium income is likely to slow marginally to a compound annual rate of 7.0%
• MARKET REGULATION
  • The market will continue to be shaped by EU legislation
    • The Danish Financial Supervisory Authority (Finanstilsynet) supervises the financial services industry in Denmark
    • The Finanstilsynet' s pension legislation has targeted consumer protection through corporate governance and solvency margin rules
    • The Danish government is planning amendments to the broker market
    • 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 Danish firms
    • The top 5 life and pensions insurers control 60% of the market, by premium income
• MARKET LEADERS
  • Among the market leaders, most are specialist life & pensions firms
    • Danica is the life and pensions insurance market leader, based on premium income in 2005
    • PFA Pension trails the market leader in the life and pensions insurance sector
    • Pension Danmark ranks third among life and pensions insurance companies
    • Nordea Liv & Pension is the fourth highest ranked life insurer by premium income
    • Kommunernes Pensionsforsikring 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: Top 5 life and pensions groups by gross premium income, as at Dec 2005
  • List of Figures
    • Figure 1: Pension premiums accounted for three quarters of total premium income in 2005
    • Figure 2: Individual policies account for the majority of life and pensions premium income
    • Figure 3: The compound annual growth rate of unit-linked premium income reached approximately 35% during 2001-2005, albeit from a smaller base
    • Figure 4: Approximately two-thirds 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: Danica leads the life and pensions market in Denmark, by premium income