About Lifis

Líftryggingafélag Íslands hf. (Lífís) offers its clients life insurance and other health-related insurance. Lífís has grown considerably in recent years, especially in the areas of life and critical illness insurance. The company utilises VÍS’s service network and ancillary divisions.

 

History

Lífís was established in 1990 when Andvaka Life and Brunabót Life merged. When it was founded VÍS owned 25% stake in the company along with Landsbanki Íslands hf. and Eignarhaldsfélagid Andvaka hf. In 2003, VÍS acquired 50% in Lífís from Landsbanki Íslands and the remaining 25% share in 2006. In May 2006, Exista (now Klakki ehf.) became the 100% owner of VÍS. In April 2012 VÍS aquired all shares of Lífís from Klakki.

Business description

Lífís offers life insurance, critical illness insurance, unit-linked life insurance, and income insurance. Term life insurance is the basic insurance policy offered by Lífís. It pays a specified sum of money upon the death of the insured. Critical illness insurance is a policy in which claimants receive a lump sum payment upon a critical illness covered by the policy. Unit-linked life insurance combines regular savings and life insurance. Income insurance is designed as a supplement to pension benefits or other insurance in the event of sickness or accident.

Lífis has low fixed costs because the company utilises ancillary units at VÍS to a considerable extent. At the same time other sales channels are used e.g. brokers and savings banks. Reinsurance and investments are handled by VÍS.

Customers

Lífís’s customer base is primarily individuals, but companies are increasingly purchasing personal insurance cover for their key employees. Most of the customers of Lífís are also customers of VÍS.

Life insurance market in Iceland

The market distinguishes between life insurance and life savings insurance. The following discussion relates to the life insurance market, as Lífís has a very insignificant market share on the life savings insurance market. The life insurance market in Iceland is competitive with four domestic and three foreign life insurance firms competing on the market. The gross premium on the market is ISK 3.455 billion in 2011. Lífís had a market share of 23,6% in 2011 measured in terms of gross premium.