The market potential assessment model for private pension savings

Abstract

The aim of the report is to develop the market potential assessment model for private pension savings to assist financial companies in strategic decision making in a specific marketplace. The market growth, saturation and competition model is developed for the markets of Finland, Estonia, Latvia, Lithuania and Poland for the time period 2000–2012. Commonly used insurance metrics like density and penetration transformed into market based factors describing the strength of market growth and premium-to-salary market saturation. Additional market growth and saturation factors and state of competition added to the model. Methods used in the empirical part are econometric analysis, including analysis of regression, as well as economic analysis, including main trend analysis, development indicators, relative and absolute indicators and other methods. The research outcome is a cross-country comparison of market growth, saturation and competition to support strategic decisions by financial companies operating in the private pension saving market.