Itello embrace the disruptive pension paradigm shift in Norway
Opening for new entrants
With the introduction of the disruptive Norwegian reform Egen Pensjonskonto to be launched in January 2021, 1.5 million white-collar employees will be empowered to choose which company that will be entitled to manage their accrued pension savings.
Itello will provide solutions both for the incumbent life insurers providing occupational pension and to the challengers offering to manage the savings.
Itello provides an industry solution for digitalisation of the disrupted Norwegian occupational pension market
The accumulated amount available for self-management is estimated at 300 billion NOK. Behind the new law is the intention to empower the individuals to make decisions regarding who should manage their pensions and to which cost. The disruptive paradigm shift opens for other companies than the current occupational pension providers of defined contribution pension.
Our solution focuses on the two types of actors that can provide the saving umbrella Egen Pensjonskonto - EPK.
- Providers of occupational pension to employers and employees
- Providers of self-management of the employees’ pension savings
Essential for both types of actors are handling the critical engagement process as well as manage the administration of the whole life cycle of the underlying paid-up policies. From accumulating wealth to retirement and payments of pension.
For life insurers providing occupational pension plans to employers, Itello provides end-to-end functionality from the offering, quotation, underwriting, and invoicing in one digital straight-through processing process.
When disruptive forces challenge the traditional business model, and customer offerings become a commodity, we foresee a continuous price reduction among participants. The way forward is escaping the maelstrom of diminishing returns is to be able to continuously improve customer offerings and have a flexible and low-cost policy administration platform.
Proven market responsiveness to the Norwegian market
Itello has supported our customers active in the Norwegian market since 2007. Over the period we have helped our customers to stay compliant with local regulations effortlessly, successfully exploited new legislation and introduction of new pension saving product 2017 – IPS. Our customer Nordnet became a forerunner in marketing the tax-sheltered product with the support from our dedicated customer team staffed with Inca experts and business knowhow. Another example is the introduction of taxation of assets based on asset classes 2019. Besides the market response, Itello has also made adoptions to the Norwegian interpretation of EU legislation such as GDPR, IDD, MiFID.
Itello invested in Norway by acquiring Eikos an actuarial consulting, PAS-vendor and BPO provider
The acquisition of Eikos 2019, provides Itello with in-depth insight knowledge and experience of the Norwegian market. Eikos is a local hero in Norway the same way Itello is a local hero in Sweden. Now the two companies can adopt Inca for the Norwegian market, including connectivity to the local pension ecosystem.