As a result of weak financial markets KLP moves away from "all-inclusive" pricing to letting a special indexation premium finance the cost of indexing resulting from a pay and social security settlement. This makes it easier to build financial buffers and KLP is building itself up to be the financially strongest of the large life companies measured according to buffer capital .The Labour Court of Norway determines that the tariff regulation on gender-neutral and age-neutral premiums is to be used in the local authority pensions area. KLP's premium system becomes the industry norm and is incorporated into the Norwegian Insurance Act from 2004.
KLP considers conversion to a limited company. A proposal for conversion does not achieve sufficient backing at the General Meeting in 2004. KLP has the lowest administration and owners' equity expenses and can demonstrate higher added value for its customers than can competing life companies. KLP confirms its position as the dominant provider of local government pension schemes. In 2006 KLP establishes its subsidiary, KLP Bedriftspensjon AS, which offers defined contribution and defined benefit pensions to organisations that are not bound by the collective pay agreement on local government pension schemes. The pension reform is adopted, but the government proposes that the implementation of flexible uptake of the new retirement pension be postponed to 1 January 2011.
Following inputs from the major customer groups in the health sector KLP decided as early as 2001 to exclude tobacco producers from the investment portfolio. This was the start of corporate responsibility as a special matter at KLP. In 2004 we signed the UN Global Compact, an initiative from Kofi Annan to persuade companies to take responsibility for the environment, human rights, labour rights and anticorruption. In 2005 KLP published its first corporate responsibility report and in 2006 we had in place a special strategy for corporate responsibility.
In recent years KLP has invested more strongly in developing advantageous services and offerings for our owners' employees. In autumn 2008 KLP Skadeforsikring AS launched personal non-life insurance policies. As a result of the major challenges the financial crisis created, KLP had the opportunity to buy Kommunekreditt Norge AS and the final takeover happened in June 2009. In February 2010 KLP Banken (the KLP bank) was launched. The bank is specially aimed at members who have their pension schemes with KLP.