Investment & Pensions Europe
2 February 2015
PA’s study for Finance Norway (Finans Norge) is cited in an article in Investment & Pensions Europe.
The piece draws on PA’s study findings that the Norwegian income-based occupational pensions market is competitive and cost-effective compared with its Swedish and Danish counterparts – despite it having a relatively small volume of assets.
The article explains how it is important to note the Norwegian market is still in its early stages, with a short history and markedly lower level of assets under management compared to corresponding schemes in Sweden and Denmark.
The article goes on to explain that competition has been shown to work well in the Norwegian market, and the supply chain is efficient, which supports the assumption that the market will succeed in achieving economies of scale, and that scale benefits will be reflected in lower market prices.
The piece concludes with more insight from PA's study: “The volume within the income-based pensions market in Norway will increase in coming years, and this will give life insurance companies greater economies of scale, which can form the basis for price reductions in the market.”