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Finland General Insurance: Key Trends and Opportunities to 2025

The total gross written premium of general insurance market in Finland was valued at $4,372.4 million in 2020. The market is projected to grow at a CAGR of more than 5% during the period 2021-2025. Economic uncertainty due to the pandemic and decreasing investment returns amid the volatile capital market condition remain the key risk factor for Finnish insurers. To boost insurance sales, insurers started to adopt digitalization in the country.

Motor insurance was the largest line of business in 2020 followed by property insurance, liability insurance, non-life personal accident and health (PA&H) insurance, financial lines insurance, and marine, aviation and transit (MAT) insurance, respectively. Marine, aviation and transit (MAT) insurance and non-life personal accident and health (PA&H) insurance segments are expected to exhibit stable growth during the projected period.

Overview of general insurance market in Finland

Overview of general insurance market in Finland

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What are the market dynamics in general insurance market in Finland?

According to FIN-FSA, the insurance sector was blighted by declining premiums and volatility in the capital market. Despite slight recovery in equity markets in the June returns, the investment return for life insurance companies reduced by 0.7% and returns on real estate investments were also negative. According to the FIN -FSA, insurers’ solvency ratios remained on a good level; the solvency positions of employee pension insurers and non -life insurance companies improved clearly. Life insurers’ solvency declined slightly, but nevertheless remained on a good level. Economic uncertainty due to the pandemic and decreasing investment returns amid the volatile capital market conditions remain the key risk factor for Finnish insurers.

Motor telematics is revolutionizing the motor insurance industry in the country. Finland is an emerging market for autonomous vehicles (AV). Automated driving is increasing rapidly in all of its forms in the country. Several projects are carried out to test the autonomous vehicles.

Telehealth services has gained traction in the country due to the COVID-19 pandemic. It accelerated the development of digital health services and telemedicine in various part of the Finnish healthcare system. Remote care has made it possible to safeguard patients and staff from being exposed to the virus, while continuing to provide high-quality care. Aging populations and increasing chronic illnesses requiring long-term care will drive the demand for telehealth services in the country.

Finland is a technologically advanced country, which has one of the fastest adoption rate of Robotic Process and Transformation and Artificial Intelligence in the world. The government is adopting new regulations to streamline technological incorporation. The country is also ahead in terms of the global rate of adoption of Robotic Process and Transformation and Artificial intelligence. Tieto’s insurance-in-a-box offering provides start-up insurers with a suite of insurance products that are ready to go, covering all core processes, from sales and underwriting to collections and claims.

GlobalData’s annual Banking and Payments Survey noted that over 68% customers in Finland preferred purchasing general insurance products directly from the insurer. It was the most sought-after channel for all groups of customers but had over 83% preference rate among customers above the age of 65 indicating a strong dependance on direct sales in the country. Bancassurance products and online aggregators were the second most preferred channel. Insurance products via online medium was the most preferred method for buying all types of insurance products. Both PC/laptop and mobile device were the most sought-after method among all age groups.

What are the lines of business in Finland’s general insurance market?

Property, motor, and liability insurance accounted for over 70% of the total general insurance business in 2020, while other lines of business contributed the remaining. 

Property insurance market in Finland

Property insurance segment is expected to grow moderately during the forecast period. The property segment remained vulnerable due to the weak investment environment after the outbreak of COVID-19. The suspension of business operations resulted in project delays. Furthermore, a decline in consumer demand for property afflicted the rental and property market in the first half of 2020. These factors, coupled with economic uncertainty impacting new residential and commercial projects, will impact the growth of the property insurance segment over the forecast period.

Motor insurance market in Finland

Motor insurance, which accounted for highest share in the general insurance business in 2020, is expected to grow moderately during the forecast period. A decline in consumer spending due to the presence of economic uncertainty impacted the premium earnings for the sub-segment. Claims paid under the segment declined by 1.8% in 2020, as compared to 1.5% growth in 2019. The number of traffic accidents reduced due to the COVID-19 control measures.

Liability insurance market in Finland

Liability insurance segment is expected to grow moderately during the forecast period. Higher awareness about rights and obligations and increased usage of litigation processes are expected to push the demand for liability insurance over the forecast period. Worker’s compensation was the largest sub-segment followed by third party liability. The claims paid under the segment declined by 16.3% in 2020, as compared to 12.5% growth in 2019.

Financial lines insurance market in Finland

Financial lines insurance segment is expected to grow stably during the forecast period. Bonds, guarantee and suretyships account for more than 15% of the financial lines DWP in 2020. Other financial lines, which constituted 84.8% of the total financial lines DWP, includes legal expenses and miscellaneous financial loss. Pohjola Vakuutus Oy was the leading provider of financial lines insurance policies, with a share of 45.8% of the total financial lines DWP in the country in 2020.

Marine aviation and transit (MAT) insurance market in Finland

The overall MAT segment’s growth decelerated in 2020 as compared to 2019. Imposition of international and domestic restrictions on trade and transportation due to the pandemic-enforced lockdown forced Finnish airlines to operate in a reduced capacity. The Finnish carrier Finnair, the largest airline in the country, reported a load factor decline of 69.4% in 2020, from 80.1% in 2019. According to GlobalData, the 1.4% decline in goods transported through road, air and rail in 2020 has contributed to the overall decline in transit insurance in the country.

Personal accident and health (PA&H) insurance market in Finland

Personal accident and health (PA&H) insurance segment is expected to grow significantly during the forecast period. The diversified nature of private health insurance products supported the rise in demand for health insurance. Furthermore, rise in health risks-related to pandemic outbreaks shall support the rising consumer awareness among the Finnish population for private health insurance products over the forecast period.

General insurance market in Finland, by line of business

General insurance market in Finland, by line of business

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General reinsurance market in Finland

According to FIN-FSA, balance on technical account before change in equalization provision (premiums earned minus claims incurred and operating expenses) was EUR336 million ($384 million). Hence, the profitability of insurance operations was very good in 2020. The segment was profitable, with a combined ratio of below 100 in 2020. The combined ratio improved to 93.5% in 2020. Claims expense was lower, due to reduced movement and social activity during the soft lockdown. According to the FIN-FSA’s report, non-life insurers’ solvency also improved, despite the changes caused by the COVID-19 outbreak in the operating environment. The profitability of investing and insurance business both improved, bolstering solvency.

Who are the major players in Finnish general insurance market?

In the Finnish general insurance market, the top five companies accounted for a combined market share of more than 60% in 2020. The segment is dominated by domestic insurers. The country also allows 100% FDI. Pohjola Vakuutus Oy was the leading market player followed by Keskinainen Vakuutusyhtio Fennia, LahiTapiola Keskinainen Vakuutusyhtio, Keskinainen Vakuutusyhtio Turva and LahiTapiola Paakaupunkiseutu Keskinainen Vakuutusyhtio.

General insurance market in Finland, by key players

General insurance market in Finland, by key players

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Market report scope

Market size (Year – 2020) $4,372.4 million (Gross Written Premiums)
Growth rate CAGR of >5% from 2021 to 2025
Base year for estimation 2020
Segmentation by line of business Property Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Marine Aviation and Transit (MAT) Insurance, Personal Accident and Health (PA&H) Insurance
Forecast period 2021-2025
Key players Pohjola Vakuutus Oy, Keskinainen Vakuutusyhtio Fennia, LahiTapiola Keskinainen Vakuutusyhtio, Keskinainen Vakuutusyhtio Turva and LahiTapiola Paakaupunkiseutu Keskinainen Vakuutusyhtio

This report provides a comprehensive analysis of the general insurance segment in Finland.

  • It provides historical values for Finnish general insurance segment for the report’s 2016-2020 review period, and projected figures for the 2020-2025 forecast period.
  • It offers a detailed analysis of the key categories in Finnish general insurance segment, and market forecasts to 2025.
  • It profiles the top general insurance companies in Finland and outlines the key regulations affecting them.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to Finnish general insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends and growth opportunities in the Finnish general insurance segment.
  • Assess the competitive dynamics in the general insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

Pohjola Vakuutus Oy

Keskinainen Vakuutusyhtio Fennia

LahiTapiola Keskinainen Vakuutusyhtio

Keskinainen Vakuutusyhtio Turva

LahiTapiola Paakaupunkiseutu Keskinainen Vakuutusyhtio

Pohjantahti Keskinainen Vakuutusyhtio

Forsakringsaktiebolaget Alandia

LahiTapiola Pohjoinen Keskinainen Vakuutusyhtio

LahiTapiola Vellamo Keskinainen Vakuutusyhtio

LahiTapiola Varsinais-Suomi Keskinainen Vakuutusyhtio

Table of Contents

Table of Contents

Executive Summary

Economy Overview

Regulatory and Compliance

Key Market Trends

Summary Trends and KPIs

Key Trends by Line of Business

-Property Insurance

-Motor Insurance

-Liability Insurance

-Financial Lines Insurance

-Marine, Aviation and Transit Insurance

-Personal Accident and Health Insurance

Distribution Channels

Competitive Landscape

Competitor Profiles

Reinsurance

-Regulatory and Compliance

Insurtech

Appendix

Frequently Asked Questions

The total gross written premium of general insurance market in Finland was valued at $4,372.4 million in 2020.

 

 

 

 

The general insurance market in Finland is projected to grow at a CAGR of more than 5% during the period 2021-2025.

Key lines of business in Finland’s general insurance market includes property insurance, motor insurance, liability insurance, financial lines insurance, non-life personal accident and health (PA&H) insurance, and marine, aviation and transit (MAT) insurance.

Pohjola Vakuutus Oy was the leading market player followed by Keskinainen Vakuutusyhtio Fennia, LahiTapiola Keskinainen Vakuutusyhtio, Keskinainen Vakuutusyhtio Turva and LahiTapiola Paakaupunkiseutu Keskinainen Vakuutusyhtio.

Key insurtech companies in Finland include Resys, Cozify, Nordea, Puzzel, Fennia and Turva.

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