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Norway Life Insurance – Key Trends and Opportunities to 2025

The total gross written premium of the life insurance market in Norway was valued at $11.3 billion in 2020. The market is projected to grow at a CAGR of more than 4% during the period 2021-2025. Life insurers in Norway adopted digitalization in their insurance value chain through strategic partnerships during the review period. In order to accelerate the AI implementation, the Norwegian government launched the ‘Norwegian National Strategy for Artificial Intelligence’ in January 2020.

In 2020, in life insurance market in Norway, under the line of business segment, pension was the largest segment followed by endowment, life PA&H, and other life insurance. Life PA&H and pension line of businesses are expected to exhibit significant growth during the projected period. Commercial life insurance dominated the segment and accounted for more than 70% of its GWP in 2020. In the retail line, the endowment was the largest category, accounting for more than 70% share in 2020. The life insurance segment was dominated by domestic insurers. Kommunal Landspensjonskasse was the largest life insurer, followed by Storebrand and Nordea Liv Norge.

Overview of the life insurance market in Norway

Overview of the life insurance market in Norway

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What are the market dynamics in the life insurance market in Norway?

According to the Fitch report, Norway’s insurance market is expected to register stable growth from 2022. The life insurance segment is expected to constitute around two-thirds of the insurance market over the next three years. Demographic factors – such as an aging population, longer life expectancies, and low birth rates – are expected to remain a key focus area for insurers. These will pressurize policyholders with increased healthcare costs and taxes over the forecast period.

The direct purchase had the strongest presence among the older customer group. The direct sales channel’s popularity was boosted by the availability of digitized services. insurance brokers and financial advisors were the next most preferred channels. Overall, online sales were the most preferred method to purchase all types of insurance policies with a 60% share. This highlights the dependency on the online medium rather than traditional ways of having direct conversations.

Digitalization:

In line with fintech and insurtech developments, life insurers in Norway also adopted digitalization in their insurance value chain through strategic partnerships during the review period. The advent of the COVID-19 pandemic accelerated the rate of adaption and innovation in the segment. Digital customer interface solutions are being developed by insurers to ensure the continuity of business operations in remote-working conditions. These solutions help insurers enhance customer experience. 

Prominence of AI:

AI offers the opportunity to drive more personalized services, advertising, and marketing campaigns. It helps insurers to integrate proprietary data and new sources of data, such as that from digital and social media and from sensors and connected devices. Conversational AI is one of the technologies that improved insurers’ proactive abilities to a great extent. For instance, Storebrand introduced a conversational AIbased virtual assistant in 2019, which resulted in a 162% increase in customer interaction within four months and reduced human support.

What is the line of business classifications in Norway’s life insurance market?

In 2020, Pension was the largest sub-segment and accounted for the highest share in the Norway life insurance market. 

Pension insurance market in Norway:

The commercial pensions offered by financial institutions, including life insurers and fund management companies, are part of the overall pension system and are mandatory in the country. However, all DB schemes are closed for new members, and employees aged 52 and below are now offered benefits under the DC scheme. Meanwhile, DC Schemes are offered by life insurance companies in the form of group insurance contracts. According to Finance Norway, within private group pension plans, the number of active DB policies declined during the review period – and in turn, the number of DC plans grew. 

Endowment insurance market in Norway:

The endowment is still in a nascent stage in the country, owing to its low penetration in 2020. The endowment policy is a combination of both life insurance and a savings plan over a specific time period. The policyholder is entitled to a lumpsum amount upon maturity of the policy.

Life PA&H insurance market in Norway:

According to the WHO, the Norwegian healthcare system was ranked 12th in the World Index of Healthcare Innovation 2020, owing to robust infrastructure and mandatory national insurance scheme (folketrygden-NIS) for the country’s citizens. Due to the large reach of the NIS, only a small percentage of the Norwegian population has additional health cover provided by private companies. However, Norway’s socialized insurance system hampers patients’ freedom to choose healthcare service options, affordability of health insurance, and access to new therapies.

Life insurance market in Norway, by the line of business

Life insurance market in Norway, by the line of business

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Who are the major market players in life insurance market in Norway?

In 2020, KLP (Kommunal Landspensjonskasse) was the leading market player in the life insurance market in Norway followed by Storebrand Livsforsikring AS, Livsforsikringsselskapet Nordea Liv Norge As, DNB Livsforsikring AS, SpareBank 1 Livsforsikring and Oslo Pensjonsforsikring AS.

Life insurance market in Norway, by key players

Life insurance market in Norway, by key playersTo know more about key players, download a free report sample

Market report scope

Market size (Year – 2020) – Life Insurance $11.3 billion (Gross Written Premiums)
Growth rate – Life Insurance (CAGR) >4%
Base year for estimation 2020
Segmentation by Line of Business Pension, Endowment, Life PA&H, and Other Life Insurance
Forecast period 2021-2025
Key players KLP (Kommunal Landspensjonskasse), Storebrand Livsforsikring AS, Livsforsikringsselskapet Nordea Liv Norge As, DNB Livsforsikring AS, SpareBank 1 Livsforsikring and Oslo Pensjonsforsikring AS

Scope

  This report provides a comprehensive analysis of the life insurance segment in Norway.

  • It provides historical values for Norway’s life insurance segment for the report’s 2016-2020 review period, and projected figures for the 2021-2025 forecast period.
  • It profiles the top life insurance companies in Norway and outlines the key regulations affecting them.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to Norway’s life insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends, and growth opportunities in Norway’s life insurance segment.
  • Assess the competitive dynamics in the life insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

KLP (Kommunal Landspensjonskasse)

Storebrand Livsforsikring As

Livsforsikringsselskapet Nordea Liv Norge As

DNB Livsforsikring Asa

SpareBank 1 Livsforsikring

Oslo Pensjonsforsikring As

Gjensidige Pensjon og Sparing

Fremtind Livsforsikring

Danica Pensjonsforsikring As

Gjensidige Forsikring Asa

Table of Contents

Table of Contents

Executive Summary

Economy Overview

Regulatory and Compliance

Key Market Trends

Summary Trends and KPIs

Key Trends by Line of Business

Life Insurance

Pension Insurance

Endowment

Life Personal Accident and Health

Distribution Channels

Competitive Landscape

Competitor Profiles

Reinsurance

Distribution Overview Regulatory and Compliance

Insurtech

Appendix

Frequently Asked Questions

The total gross written premium of the life insurance market in Norway was valued at $11.3 billion in 2020.

 

 

 

The life insurance market in Norway is projected to grow at a CAGR of more than 4% during the period 2021-2025.

Key line of business in Norway’s life insurance market includes pension, endowment, life PA&H and other life insurance.

In 2020, KLP (Kommunal Landspensjonskasse) was the leading market player in the life insurance market in Norway followed by Storebrand Livsforsikring AS, Livsforsikringsselskapet Nordea Liv Norge As, DNB Livsforsikring AS, SpareBank 1 Livsforsikring and Oslo Pensjonsforsikring AS.

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