Denmark's pension provider PFA wants to attract many more customers into the fold. This will be done by pushing down the costs, which are already the lowest among the commercial pension companies, further down, writes Inside Business.
"Over the next few years, the expenses in PFA will shrink even further. We will get administration robots to take over more. We have looked at the cost levels of occupational pension companies and we will aim very sharply at lowering costs over the next few years. We can get down to DKK 500 a year and certainly even further down looking four to five years ahead," says Jon Johnsen, group COO at PFA, to Inside Business.
A comparison of the administration expenses per customer policy, the so-called N5 key figure, which the Inside Business has conducted, shows that PFA with DKK 723 per year is well ahead of arch rivals Nordea Liv and Danica, which have a cost of DKK 1193 and DKK 1230, respectively, per police. According to Jon Johnsen, the main factors for achieving low expenses are high levels of digitization and scaling.
English Edit: Marie Honoré