Abstract
Overview
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.
Report Highlights
Following compound annual growth in premium income 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 market currently reflects a high rate of concentration compared to other European states, with the top five firms accounting for 75% of premium income.
In 2005, brokers continued to dominate distribution of single and annual premium new business, although their share of single premium business, in particular, suffered a decline of 16 percentage points, when compared to 2004. This decline was largely offset by an increase of 14% in new single premium business generated through direct sales.
Irish Life is the largest life and pensions insurance provider in Ireland, measured by premium income as at December 2005. The company reaches its customers through independent brokers, bancassurance (via permanent tsb), direct sales, franchises, institutional (other bank branch networks) and telephone/internet channels.
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.
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
- 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%
- 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
- The Irish life and pensions market expanded by a compound annual rate of
8% between 2001 and 2005
- 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
- Slower growth in pensions will produce lower compound annual growth in
the total market between 2006 and 2010
- 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
- The market will continue to be shaped by EU legislation
- 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
- The market is led by Irish firms
- 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
- Among the market leaders, banking and insurance groups alike rely on
distribution through bank networks and intermediaries
- 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
- Definitions
