The parties chose to make a further procurement, which means that the policyholder who chose a company which is no longer selectable must make an active choice to stay. Alecta will be the winner and will receive new premiums for the next five years. At best, customers who chose Länsförsäkring, Nordea or Handelsbanken will allow the capital to remain, but if the customer makes an active choice they risk losing both the new premiums and the accumulated capital.
It will be a rather interesting for policyholders who selected unit-linked insurance in Handelsbanken or Nordea because, if they do not make an active choice, the unit-linked insurance will change the mode of management to traditional insurance in Alecta. It need not be bad, but how aware are policyholders of the fact that the new premiums will go into Alecta Optimal?
Customers in Länsförsäkringar and Nordea who chose traditional insurance will get Alecta Optimal if they do not choose, but then they will also have a new option, Folksam, alongside AMF and Skandia who were there before.
For those companies that are new, Swedbank and SPP in unit-linked insurance and Folksam in traditional insurance, the challenge will naturally be to get as many active choices as possible between now and before the default choice Alecta becomes a fact!
- Swedbank are learning to drum out their message in the many customer meetings they have at the office. They of course also have the opportunity to market their offering to all bank customers who use online banking to make their payments during March, April, May and June.
- SPP has its natural sales channel through insurance advisors who represent their own occupational pension plans. How do you get new customers to choose SPP (and completely move the capital) without having a properly established channel remains to be seen.
- Folksam does not have the same opportunity but obviously, due their large market share within non-life insurance, they has the chance to address their message and get customers who work within the ITP area to choose them, even in pension savings.
It is very possible that Collectum will let all companies send stowaways in the envelopes to policyholders in ITP. The challenge for the new players and of course also for AMF and Skandia in traditional insurance and Danica and SEB in index-linked insurance is to ensure that the customer makes an active choice and for the parties to ensure that the default option is good enough. Such seems to be the reasoning within premium pension savings with AP 7 and Såfa. It is not necessarily the best thing for customers to make their own choice or seek the help of fund advisors in premium pension savings. We have no opinion in the matter.
Now that the parties have chosen the tender procedure and some companies will no longer be selectable it is easy to draw the same conclusion – Alecta will be a sufficiently good default option and if the policyholder so wishes they will be the alternative. At each point in time when the policyholder must make a choice again the default option gets a bigger share of the premiums.
If the parties instead chose connection procedure and determined the terms and conditions that apply this would have given policyholders and more of the players the chance to be winners. The players could increase the diversity of different types of solutions. Brummer is one example of a player and customer of Itello that has another offering and which has delivered good risk-adjusted returns. If you are a customer in any bank other than Swedbank and SEB, should you not be able to gather all of your finances with one and the same player if it now provides better terms for the mortgage or is more practical? Being able to choose different “providers” of mortgages, payments and pension savings should also be a given if one prefers it.
We will follow the developments in occupational pension area SAF-LO and hopefully some of our customers will become electable. It appears to be the connection procedure, which means that everyone who wants to and can has the opportunity to become a winner.
Generally for the collective agreement occupational pension area, there are of course the many free policies which possibly include the Life Insurance Inquiry’s proposal on retroactive transfer rights. This opens up opportunities for banks in their customer meetings the opportunity to right now bring up the subject, for they can certainly ask for a mandate to be allowed to represent the customer today for the free policy they have…
What is quite clear to us is that if the industry can agree on one standard it will lead to lower costs for everyone.