Overview 1
Catalyst 1
Summary 1
Executive Summary 2
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 2
The Danish life and pensions market expanded by a compound annual rate of 7.1% 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 Danish firms 2
Among the market leaders, most are specialist life & pensions firms 3
Table of Contents 4
Table of figures 5
Table of tables 6
MARKET OVERVIEW 7
The Danish life and pensions market expanded by a compound annual rate of 7.1% between 2001 and 2005 7
Premium income increased at a compound annual rate of 7.1% between 2001 and 2005, primarily driven by growth in pensions 8
The proportional distribution of premium income between group and individual policies has remained relatively unchanged between 2001 and 2005 9
Premium income from unit-linked insurance has increased slightly throughout the 2001-2005 period 11
Bonds account for the single highest proportion of the investment assets of life and pensions insurance companies 12
MARKET FORECASTS 14
The Danish life and pensions market is expected to expand by a compound annual rate of 7.0% between 2006 and 2010 14
Over the next 5 years, growth in premium income is likely to slow marginally to a compound annual rate of 7.0% 14
MARKET REGULATION 16
The market will continue to be shaped by EU legislation 16
The Danish Financial Supervisory Authority (Finanstilsynet) supervises the financial services industry in Denmark 16
The Finanstilsynet's pension legislation has targeted consumer protection through corporate governance and solvency margin rules 17
The Danish government is planning amendments to the broker market 17
The Insurance Mediation Directive creates a single passport for insurance intermediaries and enhances consumer choice 17
Insurance companies which belong to financial conglomerates face additional supervisory requirements 18
Distance marketing rules define sales practices 18
Proposed anti-money laundering legislation implies an additional administrative burden for insurers 18
Upcoming laws will enhance consumer protection 19
Providers may be required to fund a new insurance guarantee scheme 19
COMPETITIVE MARKET STRUCTURE 20
The market is led by Danish firms 20
The top 5 life and pensions insurers control 60% of the market, by premium income 20
MARKET LEADERS 22
Among the market leaders, most are specialist life & pensions firms 22
Danica is the life and pensions insurance market leader, based on premium income in 2005 22
PFA Pension trails the market leader in the life and pensions insurance sector 22
Pension Danmark ranks third among life and pensions insurance companies 22
Nordea Liv & Pension is the fourth highest ranked life insurer by premium income 23
Kommunernes Pensionsforsikring rounds out the top 5 life insurers 23
APPENDIX 24
Definitions 24
Capital redemption policy / bond 24
Composite insurer 24
Defined contribution pension scheme 24
Defined benefits pension scheme 24
Group policy 24
Individual pension scheme 24
Individual policy 24
Life assurance 24
Occupational pension scheme 25
Pension insurance policy 25
Premium income 25
Regular premium 25
Single premium 25
Technical provisions 25
Traditional insurance 25
Unit-linked insurance 25
Further reading 25
Interactive Databases 25
Reports and Briefs 26
Ask the analyst 27
Datamonitor consulting 27
Disclaimer 27
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 9
Table 3: Life and pensions insurance premium income, segmented by buyer, EURm, 2001-2005 10
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 12
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 groups by gross premium income, as at Dec 2005 21
List of Figures
Figure 1: Pension premiums accounted for three quarters of total premium income in 2005 8
Figure 2: Individual policies account for the majority of life and pensions premium income 9
Figure 3: The compound annual growth rate of unit-linked premium income reached approximately 35% during 2001-2005, albeit from a smaller base 11
Figure 4: Approximately two-thirds 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: Danica leads the life and pensions market in Denmark, by premium income 20