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Finland Life Insurance: Key Trends and Opportunities to 2025

The total gross written premium of the life insurance market in Finland was valued at $4.6 billion in 2020. The market is projected to grow at a CAGR of more than 3% during the period 2021-2025. The premiums for life insurance took a severe hit in the second quarter of 2020. With lockdown restrictions impacting conventional sales channels, the share of new premiums in total business declined during 2020; this is expected to significantly impact the pace of portfolio renewal.

In 2020, in the life insurance market in Finland, under the line of business segment, the endowment was the largest segment. Term life insurance is expected to exhibit significant growth during the projected period. The Finnish life insurance segment remained highly concentrated in 2020, indicating a lack of competition in the segment. The market share of the top 10 insurers remained at 100.0% from 2017 to 2020.

Overview of the life insurance market in Finland

Overview of the life insurance market in Finland

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

The COVID-19 outbreak negatively impacted Finnish insurers’ growth in 2020. According to the FIN-FSA, the insurance sector was blighted by declining premiums and volatility in the capital market. Despite a 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. Economic uncertainty due to the pandemic and decreasing investment returns amid the volatile capital market conditions remain the key risk factors for Finnish insurers.

GlobalData’s annual Banking and Payments Survey noted that more than 50% of customers in Finland preferred purchasing life insurance products directly from the insurer. Bancassurance products and insurance brokers 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 devices were the most sought-after method among all age groups. With remote purchasing on the rise, online purchases through mobile devices and telephone contributed over 70%.

Digitalization:

Finland is a technologically advanced country and has the fastest adoption rate of Robotic Processes and Transformation and Artificial Intelligence (AI) in the world. The government is adopting new regulations to streamline technological incorporation. For instance, changing regulations allow autonomous shipping. The country is also ahead in terms of the global rate of adoption of Robotic Processes and Transformation and Artificial intelligence.

Telehealth:

Telehealth services have gained traction in the country due to the COVID-19 pandemic. It accelerated the development of digital health services and telemedicine in various parts 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.

Sustainability:

With the rise in frequencies of natural catastrophes due to climate emergencies, insures are adopting and investing in sustainability. In October 2020, LähiTapiola was the first Finnish company to sign the United Nations Environment Programme’s Principles for Sustainable Insurance Initiative (PSI).

Green Projects:

With increasing awareness of the negative impact of fossil fuels, the focus is on the transition to renewable energy and green projects. In the past 10 years, there have been significant advances in renewable energy, especially in solar and wind power in Europe.

What is the line of business classifications in Finland’s life insurance market?

In 2020, Endowment was the largest sub-segment and accounted for the highest share in the Finland life insurance market.

Pension insurance market in Finland:

Finland’s population is aging, and this has resulted in an increase in the number of people drawing pensions and a decrease in the number of people paying taxes. In 2020, however, pensions registered a decline of 9%. Premium income from personal pension policies fell by 6%, amounting to EUR295 million ($336.9 million) that year. This decline was attributable to the downward trend of personal pension insurance, which began in 2013.

Endowment insurance market in Finland:

Endowment, with a share of more than 70% was the largest life insurance line of business in 2020. Insurance registered a negative review-period CAGR. t is expected to grow at a positive CAGR over the forecast period.

Term life insurance market in Finland:

Long-term care benefits in Finland are governed by the Disability Benefits Act. Death benefits in the country are provided under the retirement system. In 2020, term life registered the fastest CAGR in the life insurance segment during the review period.

Other life insurance in Finland:

Employers in Finland provide medical and death benefits to their employees in case of accidents, diseases, or sickness. The employees also get access to occupational healthcare and rehabilitation benefits. In 2020, LocalTapiola Mutual Insurance Company was the largest insurer in the life insurance segment followed by OP Life Assurance Company Limited.

Life insurance market in Finland, by Line of Business

Life insurance market in Finland, by Line of Business

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Who are the major players in the life insurance market in Finland?

In 2020, Nordea Life Assurance was the leading market player in the life insurance market in Finland followed by Mandatum Life Insurance, OP Life Assurance, LocalTapiola Mutual, Fennia Life Insurance and SHB Liv Life Insurance. The Finnish life insurance segment remained highly concentrated in 2020, indicating a lack of competition in the segment. The top five insurers have cornered more than 80% share of DWP in 2020.

The life insurance market in Finland, by key players

The life insurance market in Finland, by key players

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Market report scope

Market size (Year – 2020) – Life Insurance $4.6 billion (Gross Written Premiums)
Growth rate – Life Insurance CAGR of more than 3% from 2021 to 2025
Base year for estimation 2020
Segmentation by Line of Business Endowment, Term Life, Pension, and Other Life Insurance
Forecast period 2021-2025
Key players Nordea Life Assurance, Mandatum Life Insurance, OP Life Assurance, LocalTapiola Mutual, Fennia Life Insurance and SHB Liv Life Insurance

Scope

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

  • It provides historical values for Finland’s life insurance segment for the report’s 2016-2020 review period, and projected figures for the 2021-2025 forecast period.
  • It offers a detailed analysis of the key categories in the Finnish life insurance segment, and market forecasts to 2025.
  • It profiles the top life 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 Finland’s life insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends, and growth opportunities in Finland’s life insurance segment.
  • Assess the competitive dynamics in the life insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

Nordea Life Assurance

Mandatum Life Insurance

OP Life Assurance

LocalTapiola Mutual

Fennia Life Insurance

SHB Liv Life Insurance

Aktia Life

Sb Life

Keskinainen Vakuutusyhtio Kaleva

Forsakringsaktiebolaget Liv-Alandia

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

-Pension Insurance

-Endowment

-Term Life

-Other Life Insurance

Distribution Channels

Competitive Landscape

Competitor Profiles

Reinsurance

-Regulatory and Compliance

Insurtech

Appendix

Frequently Asked Questions

The total gross written premium of the life insurance market in Finland was valued at $4.6 billion in 2020.

The life insurance market in Finland is projected to grow at a CAGR of more than 3% during the period 2021-2025.

Keyline of business in Finland’s life insurance market include endowment, term life, pension, and other life insurance.

The key players in Finland’s life insurance market are Nordea Life Assurance, Mandatum Life Insurance, OP Life Assurance, LocalTapiola Mutual, Fennia Life Insurance, and SHB Liv Life Insurance.

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