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Norway General Insurance – Key Trends and Opportunities to 2025

The total gross written premium of the general insurance market in Norway was valued at $10.0 billion in 2020. The market is projected to grow at a CAGR of more than 5% during the period 2021-2025. The direct insurance loss from the COVID-19 outbreak on the Norwegian insurance industry remained limited, with claims mostly incurring from trip cancellations, unemployment/sickness benefits, and death benefits.

Motor insurance was the largest line of business in 2020 followed by property insurance, liability insurance, non-life personal accident and health (PA&H) insurance, marine, aviation and transit (MAT) insurance, liability insurance, miscellaneous insurance, and financial lines insurance respectively. Motor insurance and liability insurance segments are expected to exhibit stable growth during the projected period.

Overview of the general insurance market in Norway

Overview of the general insurance market in Norway

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

According to the Norwegian Broadcasting Corporation (NRK), the COVID-19 outbreak cost Norwegian insurance companies NOK1.0 billion ($120 million) in less than a year. For instance, Europeiske Reiseforsikring had more than NOK420 million ($50 million) of current losses with 53,000 travel insurance cancellations; consequently, this resulted in lower premiums. The COVID-19 outbreak, or any other virus outbreaks, are generally not covered under business insurance policies in Norway. To ensure business continuity, many insurers are providing extra services to their customers for a limited period at no extra cost.

Resumption in business activities is expected to revive key lines; however, growth of travel and aviation insurance will remain dependent on international developments. Greater dependence on digital platforms will drive demand for cyber liability insurance. In 2020, the fully electric vehicles market share rose to 54% of new cars sold in Norway, when compared to 42% in 2019, according to the Norwegian Road Federation. An emerging trend of electric hybrid cars to avoid fuel costs can attract motor insurers to evolve new product diversification and combat the difficult business disruption post-COVID-19. Furthermore, local restrictions on travel within the country are expected to reduce motor insurance claims, thereby easing pressure from insurers.

General insurers in Norway increasingly adopted home telematics platforms for enhancing policyholder engagement for property insurance. In 2018, Fremtind Forsikring partnered with the California-based Roost for its home telematics capabilities. Norway aims to become the first country to completely stop the sale of petrol and diesel cars and achieve the goal of selling zero-emission vehicles (electric or hydrogen) by 2025, according to the Norwegian parliament. In 2020, Norwegian insurers offered black boxes in vehicles to monitor driving patterns and provided personalized advice to improve driving behavior, and therefore reduce motor claims.

The European region had a rise in data breaches, third-party liability, regulatory and privacy costs. A total number of 200 fines were issued under General Data Protection Regulations (GDPR) in Europe until May 2020, according to data from the Allianz Risk Barometer report. Cybercrime poses a major threat to Norway over the forecast period, owing to the increased use of digital technology by Norwegians. The rise in popularity for the transport of medical samples in less time has propelled drones into the mainstream. A Norwegian startup by three entrepreneurs from the Norwegian University of Science and Technology (NTNU) built drones that can transport medical samples at a speed of 120km and 120m above the ground level using 4G, in a test flight between the Norwegian towns of Røros and Trondheim.

What are the different lines of business in Norway’s general insurance market?

Motor, Property, and Non-Life PA&H insurance accounted for over 70% of the total general insurance business in 2020, while other lines of business contributed the remaining. 

Property insurance market in Norway

Property insurance segment is expected to grow stably during the forecast period. According to Statistics Norway, in 2020, the country exported a total of 2,212TWh of electricity. Of this, renewable energy exports are expected to increase eightfold by 2030, owing to investments from institutions such as Equinor and the Norwegian GPGF. Thus, developments related to clean energy will remain a key focus area for property insurers.

Motor insurance market in Norway

Motor insurance is expected to grow stably during the forecast period. According to Statistics Norway, 11,986 claims were incurred from motor insurance in 2020. The COVID-19 situation and limitation in movement impacted motor insurers’ business during the lockdown period. The market is expected to partially recover by 2022 and regain pre-COVID-19 momentum by 2023.

Liability insurance market in Norway

The liability insurance segment is expected to grow moderately during the forecast period. The government issued new financial measures that stipulated to reduce employers’ social insurance contribution by 4% for a single term. For workmen’s compensation insurance benefits, contributions from employees and employers are collected as part of the social insurance rates. Cybercrime is a growing concern for organizations, and this resulted in an increased demand for cyberinsurance policies. 

Financial lines insurance market in Norway

The financial lines insurance segment is expected to grow marginally during the forecast period. Low oil prices and cancellations related to the collapse of Thomas Cook Group’s Northern European businesses impacted Financial Lines insurance in 2019. Norwegian insurers have significant exposure due to the mandatory nature of travel bonds. The travel cancellation, which ensued in 2020 following the pandemic, has further negated the outlook.

Marine aviation and transit (MAT) insurance market in Norway

Aviation insurers are expected to be impacted by the grounding of fleets, as they are expected to offer rebates or adjust premiums to accommodate the number of days in the layup. Meanwhile, aviation hull or liability insurance will mostly not be impacted by direct claims from the outbreak. With the country relaxing domestic travel measures, staycations will support insurance demand. Revenue from business and international travel is unlikely to recover to 2019 levels over the forecast period.

Personal accident and health (PA&H) insurance market in Norway

Hence, about 8% of the population had private insurance, as of June 2021 – mainly due to longer waiting periods in public healthcare and a wider choice of providers in private health insurance. Thus, Norwegian insurers are not expected to be affected by direct claims arising from the outbreak. Some insurers, however, are providing extra services to their customers, for a limited period and at no extra cost.

The general insurance market in Norway, by the line of business

The general insurance market in Norway, by the line of business

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General reinsurance market in Norway

The premium ceded for the general insurance segment declined during the review period. In Norway, there is no mandatory requirement for foreign reinsurers to be licensed, and insurance intermediaries can also facilitate transactions with non-admitted reinsurers, which makes it an attractive destination for foreign reinsurers. The ESRB recommended reinsurers to suspend the payment of dividends, buy-back of ordinary shares, and payment of variable remuneration until September 30, 2021, in order to maintain sufficient capital.

Who are the major players in the Norwegian general insurance market?

The Norwegian general insurance segment was dominated by domestic insurers, with an increasing trend in the market concentration during the review period. Among the top five insurers, three were domestic insurers. Gjensidige Forsikring ASA was the leading market player followed by If Skadeforsikring NUF, Fremtind Forsikring AS, Tryg Forsikring A/S (Norway) and Eika Forsikring AS. The Norwegian general insurance market was highly concentrated, with the top 10 insurers accounting for more than 90% of GWP in 2020.

The general insurance market in Norway, by key players

The general insurance market in Norway, by key players

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Market report scope

Market size (Year – 2020) $10.0 billion (Gross Written Premiums)
Growth rate CAGR of >5% from 2021 to 2025
Base year for estimation 2020
Segmentation by line of business Property Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Marine, Aviation and Transit Insurance, Non-life Personal Accident and Health Insurance and Miscellaneous
Forecast period 2021-2025
Key players Gjensidige Forsikring ASA, If Skadeforsikring NUF, Fremtind Forsikring AS, Tryg Forsikring A/S (Norway) and Eika Forsikring AS

Scope

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

  • It provides historical values for Norwegian general insurance segment for the report’s 2016-2020 review period, and projected figures for the 2020-2025 forecast period.
  • It offers a detailed analysis of the key categories in Norwegian general insurance segment, and market forecasts to 2025.
  • It profiles the top general 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 the Norwegian general insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends, and growth opportunities in the Norwegian general insurance segment.
  • Assess the competitive dynamics in the general insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

Gjensidige Forsikring Asa

If Skadeforsikring nuf

Fremtind Forsikring As

Tryg Forsikring As

Eika Forsikring As

Storebrand Asa

Frende Skadeforsikring As

KLP Skadeforsikring As

Codan Forsikring

Protector 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

Property Insurance

Motor Insurance

Liability Insurance

Financial Lines Insurance

Marine, Aviation and Transit Insurance

Personal Accident and Health Insurance

Miscellaneous Insurance

Distribution Channels

Competitive Landscape

Competitor Profiles

Reinsurance

Distribution Overview

Regulatory and Compliance

Insurtech

Appendix

Frequently Asked Questions

The total gross written premium of the general insurance market in Norway was valued at $10.0 billion in 2020.

 

 

 

 

The general insurance market in Norway is projected to grow at a CAGR of more than 5% during the period 2021-2025.

Key lines of business in Norway’s general insurance market include property insurance, motor insurance, liability insurance, financial lines insurance, non-life personal accident and health (pa&h) insurance, and marine, aviation and transit (MAT) insurance.

Gjensidige Forsikring ASA was the leading market player followed by If Skadeforsikring NUF, Fremtind Forsikring AS, Tryg Forsikring A/S (Norway) and Eika Forsikring AS.

The key insurtech companies in Norway are Nordea and Gjensidige Forsikring ASA.

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