Sweden Insurance Report Q1 2016
BMI View: As one of Europe's most developed insurance sectors, Sweden's life and non-life segments areexpected to expand at low to medium single-digit rates over the coming years. This growth will primarilyresult from Sweden's strong economy where expanding private disposable income will push the uptake ofpolicies across a number of sub-segments, including property, motor and non-essential life insurance.
While these economic effects will materialise particularly within life insurance, growth in the non-lifesegment will remain limited due to the country's well-established healthcare system which has renderedhealth insurance largely redundant.
Key Updates And Forecasts
With 78% of total insurance premiums accounted for by life insurance and only 22% by non-lifeinsurance, there is a significant difference between the two major segments - in terms of market structureas well as growth prospects and market opportunities. One of the primary factors which is expected tokeep a lid on the growth potential of the non-life segment is the lack of a sizeable health insurancesegment, due to the country's strong healthcare system and social security support.
Life insurance will continue to see sustainable growth through the foreseeable future primarily due to theongoing expansion of the country's retirement income system - which, following the country'sstrengthening economy, should see increased contributions from the labour force. Steadily growinghousehold spending, paired with an expanding retirement-aged population, will continue to boost theuptake of life insurance policies, including additional life solutions.
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