The growth in Denmark’s insurance industry has gained pace in recent times owing to economic recovery by the country, better deals offered by insurance companies, and encouragement of foreign direct investment in the insurance sector.
Ken Research in its recently published report on “Non-Life Insurance in Denmark, Key Trends and Opportunities to 2020” forecasts bright growth prospects in the non-life insurance segment which is the second largest segment in the Danish insurance industry.
Thanks to economic recovery, people having adequate disposable incomes will buy more automobiles and invest in property. And, it is this growth in the automobile and property markets, which is going to drive growth in the non-life insurance segment. In the non-life insurance segment, property insurance generates the maximum revenue followed by motor insurance. Analysts at Ken Research think that the mandatory safety insurance for property damage such as fire accidents will drive the insurance industry. Another growth driver is the huge market for non-life insurance related to commercial planes and flights. Amendments in the Danish Air Navigation Act have made third-party liability insurance mandatory covering persons or property for commercial drone flights.
In future, there will be more third-part liability insurances for corporate and residential spaces. But the major demand would come from defence and security and the automotive industry. Other growth drivers include marine, health, commercial and travel industry.
Bancassurance dominates as a medium of direct marketing of non-life insurance products. However, bancassurance will receive direct challenge from other insurance agencies which do not operate under bank settings. These companies are increasingly using the Internet and smart phone apps to reach the consumer and increase their presence in the non-life insurance market.
The Internet will help in increasing the consumer awareness and knowledge about non-life insurance products and thus will generate new market avenues for the insurance industry. The Danish non-life insurance market is a highly competitive landscape with leading companies accounting for a lion’s share of this market. To give competition to the established players, new companies must offer more benefits to consumers by introducing innovative policies.
Overall, the Denmark non-life insurance industry is expected to grow at a decent CAGR. The major factors driving the industry include rising disposable incomes of people, government regulations for mandatory safety insurance, competitive and innovative market space, and growth in health, marine, commercial and travel industry.
Major Players of the Industry
Tryg Forsikring A/S Codan Forsikring A/S Topdanmark Forsikring A/S Alm. Brand Forsikring A/S Sygeforsikringen “danmark”, gs. LB Forsikring A/S Alka, Forsikrings-Aktieselskabet GF-Forsikring A/S Qudos Insurance A/S Alpha Insurance A/S
For more coverage on the topic visit the link:https://www.kenresearch.com/banking-financial-services-and-insurance/insurance/non-life-insurance-denmark-key-trends/86265-93.html
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