(MENAFN Press) The Swedish insurance industry is highly competitive, and has one of the highest densities in the European region.
However, Sweden's insurance penetration as a percentage of GDP was lower than that of the UK and France in 2011.
Domestic insurance companies dominate Swedish insurance, with a few large companies and groups accounting for most of the industry.
A small share of the industry is distributed among a large number of smaller insurers.
The Swedish insurance industry experienced a period of uncertainty with the economic slowdown in 2008. However, it was considered an attractive insurance market prior to this.
Despite the uncertain economic conditions in the EU, insurance companies are showing an interest in investing in the Swedish insurance industry in 2012, led by the development of the Swedish economy and the propensity of the Swedish population to invest in insurance.
The Swedish insurance industry grew at a CAGR of 4.2% during the review period, primarily supported by the life insurance segment.
The financial crisis, the European debt crisis and changes in regulatory structure are expected to force Swedish insurance companies to reassess pricing of policies and make efforts to expand their consumer base over the forecast period.
Individual pension and endowment categories lead the way for the life segment
Individual pension products accounted for a large share of the Swedish life insurance segment in 2011, followed by endowment products, which played a major role in driving the overall life insurance segment during the review period.
The most popular mode of saving for the Swedish population is life insurance products, which accounted for around 45% of overall household savings in 2011.
Swedish endowments recorded substantial growth during the review period, growing at a CAGR of 16.9%, and are expected to be the leading life insurance category over the forecast period. The growth of endowment products is expected to be at the expense of pension products.
Increasing demand for home insurance products
The Swedish non-life insurance segment's growth was primarily supported by property and motor insurance, the two largest categories in the non-life segment.
Around 95% of the Swedish population in the 16’84 age group are covered by home insurance, which is typically a package of non-life policies that protect the policyholder's belongings in the event of theft or fire.
The policies also often provide travel insurance, insurance against assault, and third-party liability insurance.
Decline in quality of public healthcare supporting private health insurance
The Swedish public healthcare system is one of the best in Europe. However, issues such as lengthening queues and inconsistent care supported the growth of private health insurance in the country.
Health insurance provided by employers also contributes a major proportion of private health insurance in Sweden.
Private insurers focus on group health insurance business, which is also expected to support the growth of personal accident and health insurance over the forecast period.
Swedish insurance industry remains concentrated with high competition
The Swedish insurance industry is concentrated, as the top five insurers accounted for 84% of the industry in 2010.
Both the life and non-life segments are concentrated: in the life segment, the top ten insurers accounted for over 80% of the segment in terms of gross written premium, while in the non-life segment the top 10 companies represented a 93.14% segment share in 2011.
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