Life and Non-Life insurance market in Finland - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Life and Non-Life insurance market in Finland - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• Life and non-life insurance market in Finland is estimated to register a CAGR of approximately 3% during the forecast period.
• In 2018, insurance premiums written in Finland rose by 3% to EUR 23.6 billion. It is the combined result of a 4% drop in life insurance, a 3% rise in non‐life insurance.
• In 2018, Life insurers’ premium income was 4% smaller than in 2017, totaling approximately EUR 4.3 billion. The development of premium income was inconsistent: premium income from capital redemption policies rose by 22%, whereas premium income from unit‐linked life insurance fell by 25%. For some years now, premiums written have focused more and more on unit‐linked products, and now they already comprised 85% of the total premium income. The year 2018 was profitable for life insurance companies. The profit for the financial period grew to EUR 661 million from the previous year's EUR 598 million, remaining close to the same level as in 2017.
• Non‐life insurers' total premiums written increased by three percent to Euro 4.5bn. Companies based in Finland paid non‐life claims for EUR 3.3 billion, which is almost 8% more than in 2017. The balance on technical account before the change in equalization provision (premiums earned fewer claims incurred and operating expenses) was EUR 211 million. The figure was positive for the seventh year in a row, which means the sector’s profitability has been successfully raised to a good level.
• In 2018, the employment rate in Finland improved substantially, which had a stimulating effect on economic activity overall. This was reflected in the premium income for insurance companies, most notably in employee pension insurance, but also in statutory accident insurance. Motor liability insurance was the only area where premium income reduced due to intense price competition.

Key Market TrendsGross Written Premium (GWP) of insurance market:

In 2018, Life Insurance premium down by 4% and Non-Life Insurance premium was up by 2.8% from the previous year. Non-Life insurance segment has the potential to grow in the coming years due to government initiatives. The Government Programme aims to support sustainable urban development and increase the volume of housing construction in growing urban areas so that the government can better respond to the growing demand for housing, bring housing prices down to a reasonable level, and facilitate the mobility of the labor force. By increasing the production of state-subsidized, reasonably priced housing, the government can supplement the supply of market-driven and private housing and stabilize fluctuations in the market. The government considers the importance and special needs of the Helsinki Metropolitan Area. The urban policy will focus on the prevention of segregation and the development of suburban areas. Ministry of Environment renovates the existing building stock to be more energy-efficient and less reliant on carbon. The steering of construction promotes high-quality, safe, and aesthetic building solutions. It also promotes reduced energy use, greater energy-efficiency, and the use of renewable energy sources in building activities.

Increase in GDP per capita income:

GDP per capita is a very important indicator of the economic strength of a country, and a positive change is an indicator of economic growth. The per capita income of the country has increased in recent years and expected to continue. In 2018, the employment rate in Finland improved substantially, which had a stimulating effect on economic activity overall. This was reflected in the premium income for insurance companies – most notably in employee pension insurance, but also in statutory accident insurance. Motor liability insurance was the only area where premium income reduced due to intense price competition. Finnish insurers’ solvency position developed in two directions towards the end of the year 2018: compared to the previous quarter, solvency weakened in the employee pension sector. Still, it strengthened in the life and non‐life insurance sectors. Due to the increase in the GDP per capita, it can drive the insurance market in the coming years.

Competitive Landscape

The report covers the major players operating in the Life and Non-Life insurance market in Finland. The market is consolidated due to major market share is held by three companies. The market is expected to grow in the forecast period due to positive economic growth and many other factors.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

OP Insurance
LocalTapiola Group
If P&C Insurance
Fennia mutual
pohjantähti
Turva
Alandia
Suomen Vahinkovakuutus
Nordea Insurance Finland
Suomen Keskinäinen Lääkevahinkovakuutusyhtiö

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