A stable, well-functioning financial market for allA stable, well-functioning financial market for allRecent news
We list here recent news from the insurance sector.
2016
FI Analysis 6: Vulnerability indicators within the insurance sector
FI has identified a number of quantitative indicators that point toward factors in the insurance sector that could have an effect on financial stability. These indicators show that there was good resilience in the insurance sector at the end of the year.
Supervision of insurance undertakings
FI has observed deficiencies in the insurance undertakings' practical management of surplus and in their internal guidelines for and information to their customers about their surplus management.
FI monitors developments as they unfold
Finansinspektionen is monitoring the developments following the EU referendum in the UK. We are continuing to maintain a dialogue with the Ministry of Finance, the Riksbank and the Swedish National Debt Office and keep close contact with the Swedish banks. FI always has contingency plans in place to take measures that will contribute to financial stability.
2015
Supervision of insurance undertakings
The objective of Finansinspektionen's supervision of insurance undertakings is to monitor their ability to fulfil their commitments to customers, and to monitor that customers receive comprehensible and accurate information. This report focuses on the first of the above-mentioned primary objectives.
2014
Swedish insurance companies assessed in stress test
The European Insurance and Occupational Pensions Authority, EIOPA, has conducted EU-wide stress tests to assess the resilience of European insurance undertakings to adverse market developments. In the Swedish part of the exercise, ten large insurance groups and insurance companies, who account for more than half of the Swedish insurance market, participated.
2013
Risks in the financial system 2013
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
Supervision Report 2013
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
Implementation of the European supervisory authorities’ guidelines and recommendations
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
2012
Risks in the financial system 2012
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
Supervision Report 2012
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
2011
Risks in the financial system 2011
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Supervision Report 2011
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
2010
Risks in the financial system 2010
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
Lessons learned from supervision and regulatory development
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.
2009
Risks in the financial system 2009
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
The insurance barometer (2009:12)
The insurance barometer, at a total level, summarises the outcome of the insurance companies’ reporting to Finansinspektionen using the traffic light model and solvency for the last five six-month periods.
Follow-up of technical provisions within life insurance
We can conclude that several insurance companies (life insurance companies and occupational pension funds) have deficits in their technical provisions and that the primary reason is an underestimation of the policyholders’ life expectancy rates.
Complicated financial instruments in occupational pension funds
The occupational pension funds* predominantly have no large holdings or concentrations of complicated financial instruments.
2008
The insurance companies’ routines for assets covering technical provisions
Our investigation of some 20 insurance companies shows that the companies are managing their register of assets covering technical provisions in a satisfactory manner.
Suitable TV insurance
Consumers are often offered product insurance when they purchase electronic products. If the consumer accepts, the insurance agreement is printed out and signed in the store.
On the way to new European insurance regulations
We are facing great challenges in the insurance sector. A previously typically national, tightly regulated and protected market has been internationalised and subjected to competition. In addition to this is the EU’s overall ambition to create a genuinely inte-grated and common financial market. The aim is to increase competition and effi-ciency, thereby increasing growth and welfare in Europe. The new regulations for sol-vency calculation, Solvency 2, are an important step along the way. This is going to lead to improved methods for analysis and governance of the companies’ risks.
IT disruptions at a constant, high level
IT disruptions are increasing at some companies and decreasing at others. On the whole, the number of disruptions remains at a constant, high level.
The Swedish banks can manage the recession (2008:18)
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
A changing pension market
The competition on the life insurance market is increasing. The pensions based on collective bargaining constitute an increasing share of the total life insurance market. Changed tax regulations are affecting motives and opportunities to take out insurance or supplement private insurances. Other types of investment are challenging life insurance companies and that creates new insurance products with a limited insurance element. FI has surveyed the procurement of supplementary pensions for salaried employees and analysed risks that procurements can entail for a changing pension market.
FI tightens control of insurance groups
Finansinspektionen has reviewed 51 companies that did not report that they are a part of an insurance group. The result was that 47 of these companies were a part of an insurance group and should thereby have reported to FI. These companies have been informed that they are supposed to report for the year 2007.
Allocation of surplus in traditional life insurance
It is not unusual that as much as one-fourth or more of a final pension is comprised of additional amounts that are based on surpluses. It is therefore significant how the company distributes its surplus to the customers.
Children’s insurance – a review of information and compensation
Parents who have a seriously ill child are entitled to compensation through the Swedish Social Insurance Administration. Those who choose temporary parental benefits can jeopardise their right to compensation from their child’s sickness and accident insurance.
Covering of technical provisions in ten insurance companies
Finansinspektionen has investigated the covering of technical provisions at ten insurance companies. All of the companies had assets that covered the companies' liabilities for technical provisions for the policyholders, in other words full coverage of technical provisions. The assets were also invested in accordance with legal requirements.
2007
The benefit statements of pension companies still vague
The benefit statements for pension savings have not notably improved since Finansinspektionen’s review in 2006. A standard insurance vocabulary that would improve comprehension of the benefit statement is still lacking and many companies still specify fees that consumers pay for pension savings as a lump sum. In addition, too few pension companies explain in simple terms for their investors that the entire sum of the pension capital is not guaranteed.
Insurance companies handle some traffic injuries too slowly
Since Finansinspektionen’s review in 2005, insurance companies have taken some measures to shorten handling times for traffic injuries. Despite these measures, this study shows that there is still more progress to be made andthat companies in some cases are unnecessarily slow.
Pensions being paid
Normal consumers may need some help in understanding how to calculate thesize of their retirement pension. Recently this has been easier to find out. On example is the development of the Minpension.se web page, which can give an idea of how much national pension and occupational pension based on collective bargaining, has been earned to date. However, private insurancebased pension saving and capital pension policies* are not included in the background data with which minpension.se works.
Insurance-based pensions saving
The insurance market for Swedish consumers has changed a lot over the lastcouple of decades. The range of insurance forms has decreased while forms ofasset management have multiplied. The view of how risk should be sharedbetween companies and policyholders has changed. Policyholders are nowexpected to bear an every greater portion of financial risk.
2006
The right of transfer for savers in pension insurance policies - survey and proposals
FI is positive towards an extended right of transfer for pension insurance policies. It proposes that the government reconsider the issue of an obligatory right of transfer for policies entered into prior to 2006. The right of transfer should cover both personal pension insurance policies and occupational pension insurance polices. FI believes that the problems in introducing the right of transfer for older policies can be resolved in the formulation of the terms and conditions of the right of transfer.
Pension saving and benefit statements
This report is based on Finansinspektionen’s audit of the benefit statements ofthe more than fifty life insurance companies and friendly societies offering insurancepolicies in Sweden.
Covering of losses by insurance companies – a presentation of various methods
One starting point for the life insurance business is that policyholders should be treated fairly and reasonably. Any surplus that arises in a company should be distributed to policyholders, and the distribution should be based on how they have contributed to the surplus.
2005
Internal transactions in life insurance companies – a follow-up inquiry
For several years, FI has emphasized the need for confidence-building measures within life insurance companies, in which mutuality requires that interests of savers must be assigned special importance.
Processing of complaints in the financial sector
Finansinspektionen (FI) has studied how well companies follow FI's regulations and general guidelines regarding the processing of complaints. The study included 196 companies in the banking, fund management, securities and insurance sectors.
Enhanced protection for victims of traffic accidents – a review of processing times and information
FI is following up its report “Stärkt skydd för trafikskadade” [Enhanced protection for victims of traffic accidents] (2003:1).
Fees charged by life assurance companies
The study includes the fees charged for life assurance policies in which there is a guaranteed amount of benefit. The Swedish Financial Supervisory Authority (FI) carried out a study of life assurance fees during 2001–2003. The period selected was based on a discussion with the industry whereby it was not reasonable to demand material an earlier in time.
