Insurance will get cheaper

PA financial services expert, Knut Erlend Vik, is quoted in an article in Dagens Næringsliv commenting on how the profitability in the insurance industry has been strong for several years. And this year it could be even better.

Knut Erlend highlights how the insurance industry experiencing record high earnings will lead to price cuts. He says that this upturn period has lasted for an unusually long period of time.

Knut Erlend explains that he has followed the industry closely in Norway and globally for 15 years, and since the financial crisis eight years ago, he has seen the major companies gradually increase insurance rates, while costs in the industry have fallen sharply.

For the three big players in Norway – Gjensidige, If and Tryg – return on equity this year has passed 20%. This begs the question why few players in the market have challenged the price level. “I think high profitability will eventually benefit customers in the form of cheaper insurance,” says Knut Erlend.

Knut Erlend Vik is a financial services expert at PA Consulting Group