Insurance in Sweden 2010

Transcription

1 Insurance in Sweden 21

2

3 Security for the individual growth for the economy We are all exposed to risk. It might be the risk of being in a traffic accident or of a fire in your home. It could be theft or long-term illness. Without insurance these events could entail financial disaster. But with insurance you can be financially protected. For example, in 29 insurance companies paid out SEK 1.1 billion to about 13, policyholders affected by fires in their homes. That is an average of SEK 85, per fire. It would take a household over three years to get this amount together by saving SEK 2, per month. The idea of insurance is simple: you share the risks. Through insurance a household or a company pays a premium in exchange for compensation by the insurance company if disaster should strike. A private individual can also take out a pension insurance that pays a given future income in exchange for premium payments made in the present. Insurance makes it possible for private individuals and companies to live and work in economically stable conditions. In that way insurance makes it easier for people and companies to dare to invest in projects that would otherwise have been too risky to implement. In that way insurance contributes to economic stability, social protection and growth in the economy. Through this brochure we want to provide an overall view of the insurance industry and describe its importance for the national economy. Christina Lindenius, managing director

4 The insurance industry The insurance industry is an important part of the national economy. Through insurance individuals and companies can obtain financial protection at a low cost against different types of risk. Swedish insurance companies generated premium income in excess of SEK 27 billion in 21, they employed almost 24, people and invested more than SEK 2,95 billion in the global economy. There are about 47 registered insurance companies in Sweden. Most of them are small local non-life insurance companies. The market is concentrated into a few large companies and company groups. In non-life insurance the five largest insurance companies/groups have 83 per cent of the market. In life insurance the five largest insurance companies/groups have 42 per cent of the market. The international presence has increased in the past ten years. At present there are 35 foreign insurance companies represented via branches or agencies. In addition several of the largest insurance companies are foreign-owned, such as Skandia and Trygg Hansa. Number of insurance companies, 21 National insurance companies, of which 147 Unit-linked insurance companies 1 Other life insurance companies 34 Non-life insurance companies 13 Local insurance companies, of which 24 Large local companies 53 Small local companies 151 Friendly societies 82 Foreign companies, branches and agencies 35 Total 468 Source: Swedish Financial Supervisory Authority The insurance industry employs almost 24, people. This is equivalent to a half percent of all gainfully employed people in Sweden. Slightly more women than men work in the insurance industry. There are many different jobs in the insurance industry. Common occupations are actuary, claims adjuster, economist and lawyer. The level of education has increased steadily in the past ten years. 4 INSURANCE FÖRSÄKRINGAR SWEDEN I SVERIGE Number employed, 21 Women Men Total Number of employees Source: Statistics Sweden (SNI code 66). Own calculations of gender distribution based on statistics from FAO (Swedish Insurance Employers Association) and KFO (employers organisation for cooperative business).

5 The contribution of the insurance industry to the gross domestic product (GDP) is about 1.2 per cent. The insurance industry also contributes large amounts in tax payments every year. In 29 tax payments were SEK 31 billion, consisting of tax on premiums, corporate tax and yield tax. Contribution to GDP, 2 21 Per cent 1,5 1,4 1,3 1,2 1,,9,8,7,6,5,4,3,2, Source: Statistics Sweden (SNI code 66) FÖRSÄKRINGAR INSURANCE IN I SWEDEN SVERIGE 21 5

6 Insurance in Sweden In Sweden 95 per cent of all households have home insurance. Most employees have occupational pension insurance and a large proportion of the population also have private insurance policies. In recent years the number of private health care insurance policies also increased substantially. In 21 non-life insurance companies paid out almost SEK 47 billion in compensation for various claims. Life insurance companies paid out over SEK 66 billion in pensions and death benefit. In Sweden about 95 per cent of all individuals aged are covered by home insurance. In the group cohabiting adults with children the figure is over 99 per cent. The percentages have been relatively constant since the start of the 199s. Home insurance consists of a package of various non-life insurance policies that protect the policyholder s belongings in the event of theft or fire, for example. The policies also provides travel insurance, insurance against assault or liability to pay damages. Percentage of households with home insurance, years, 26/ years with home insurance Source: Statistics Sweden Living Conditions Survey 26/27 The most common insurance policies in the group householder and homeowner insurance, holiday home insurance and boat insurance are householder and homeowner insurance. More than 4.5 million householder and homeowner insurance policies were written in 29. Since 2 the number of insurance policies in this group has increased steadily. This is mainly because the number of home insurance policies has increased. The number of boat and holiday home insurance policies has remained relatively constant at 29, boats and about 57, holiday homes per year. Number of non-life insurance policies written (home, holiday home, boat), 2 29 Millions 5,5 5,45 5,4 5,35 5,3 5,25 5,2 5, FÖRSÄKRINGAR INSURANCE SWEDEN I SVERIGE 21 21

7 The number of claims for householder and homeowner, holiday home and boat insurance policies reported to the non-life companies in 29 amounted to just over 6,. Insurance companies paid claims of more than SEK 7 billion. The most common type of claim was on allrisk policies, while the largest type of claim in terms of value was fire. The numbers of claims reported and claims paid have increased since 24. The increase was mainly within householder and homeowner insurance. Number of claims reported and claims paid in non-life insurance (home, holiday home, boat), 2 29 Number of damages, thousand Claims, SEK billion Antal Number anmälda of claims skadorreported Claims paid Utbetalad ersättning Motor third-party liability insurance Number of motor vehicle and motor third party liability insurance policies is a compulsory policy that among written, other things Millions covers personal injury. In 29 6,1 it covered just over 5.7 million 6, vehicles. Motor vehicle insurance 5,9 covers damage to the vehicle itself, 8 among other things. 5,8 The number of vehicle and third 7 5,7 party liability insurance policies 5,6 6 has increased during the 2s, 5,5 with the exception of the period 5 5, , when a premium tax 4 5,3 was introduced for motor third 5,2 party liability insurance. This led 3 Antal motorförsäkringar 5,1 to a reduction in the number of Antal trafikförsäkringar policies written in both motor third 2 5, party liability and motor vehicle 1 insurance. Number of motor vehicle insurance policies Number of motor third party liability insurance policies Källa: FÖRSÄKRINGAR INSURANCE IN I SWEDEN SVERIGE 21 7

8 Between 24 and 28 both the number of claims reported and claims paid from motor vehicle insurance increased. However, for motor third party liability insurance we see a decrease in the number of claims reported. In 28 the number of claims reported was just under 1,1,. Insurance companies paid out compensation of more than SEK 1 billion. Claims reported motor third party liability insurance Claims reported motor vehicle insurance Claims paid, motor third party liability insurance Claims paid, motor vehicle insurance The number of claims reported and claims paid in motor vehicle and motor third party liability insurance, Number of damages, thousand Anmälda skador trafikförsäkring Anmälda skador motorförsäkring Claims, SEK billion Utbetalad ersättning trafikförsäkring Utbetalad ersättning motorförsäkring Sickness and accident insurance consists of several different types of policy. It includes child insurance, rehabilitation insurance, health care Millions insurance, accident insurance and various forms of sickness insurance. 8 2 Group insurance is normally written 7 via a trade union. 15 Between 28 and 29 the 6 number of sickness and accident insurance policies written increased substantially. Employer-paid insurance was the part that increased most Number of sickness and accident policies written, Employer-paid Arbetsgivarbetald Group insurance Gruppförsäkring Individual Individuell FÖRSÄKRINGAR INSURANCE SWEDEN I SVERIGE 21 21

9 The number of private health care insurance policies has increased substantially in recent years. In 29 over 36, people had private health care insurance. Most of these people have their policy paid by their employer. Private health care insurance complements public welfare and social protection systems. Health care insurance sometimes gives faster care and can also help towards covering some costs that arise in connection with health care. Number of private health care insurance policies, 2 29 Thousand Employer-paid Arbetsgivarbetald Group Gruppförsäkring insurance Individual Individuell Note Includes Insurance Sweden s member companies and DKV Hälsa. FÖRSÄKRINGAR INSURANCE IN I SWEDEN SVERIGE 21 9

10 The Swedish pension system has three parts: national pension, occupational pension and private pension. About 2 million people had private pension savings in 29. In the age group about 45 per cent had a private pension policy. Average savings for these were SEK 5,4 per person. Of the people who received pension payments in 29 about 25 per cent received payments from a private pension insurance company. Percentage of people who save in a private pension scheme by age category, 29 Per cent Note Only includes pension insurance, not endowment insurance. Source: Statistics Sweden Private pension insurance is classified for taxation purposes either as pension insurance or endowment insurance. Premium income for private pension and endowment insurance was more than SEK 93 billion in 21. The policies classified as endowment insurance constitute over 9 per cent of all private pension insurance. Private pension insurance can be divided into unit-linked insurance and other life insurance. Of these, other life insurance is greatest by volume. Other life insurance includes traditional life insurance and deposit insurance. Premium income for private pension and endowment insurance, broken down into unit-linked insurance and other insurance, 21 SEK billion Private pension insurance, unit-linked Private pension insurance, other life insurance Endowment insurance, unit-linked Endowment insurance, other life insurance 1 FÖRSÄKRINGAR INSURANCE SWEDEN I SVERIGE 21 21

11 The most common form of saving for Swedish households in 21 was insurance. The share of insurance was almost 5 per cent of total household saving. Other types of savings are bank accounts, shares or mutual funds. The financial crisis in 28 meant that almost all forms of savings fell in value. The decline for insurance savings was, however, less than for shares and funds, for example. Household financial saving by type of saving, SEK billion kv1 kv2 kv3 27 kv4 kv1 kv2 kv3 kv4 kv1 kv2 kv3 kv4 kv1 kv2 kv3 kv Bonds Insurance savings, collective, excluding Premium Pension Försäkringssparande, Insurance savings, individual kollektivt, ej PPM Fondandelar Mutual fund units Obligationer Shares Försäkringssparande, Bank deposits individ Aktier Bankinlåning FÖRSÄKRINGAR INSURANCE IN I SWEDEN SVERIGE 21 11

12 Insurance companies The insurance industry can be divided into non-life and life insurance. In non-life insurance there are a number of different products that cover a lot of different risks, such as property insurance, third-party insurance, legal expenses insurance, assault insurance, and travel insurance. In life insurance the risk is associated with the life and health of the person insured. Many life insurance products are also a form of saving. Non-life insurance compensates for loss suffered to property and pays damages to third parties. Life insurance companies sickness and accident insurance is also classified as non-life insurance. In 21 premium income for non-life insurance companies was SEK 63 billion. The most common non-life insurance is business and real property insurance, closely followed by motor vehicle insurance and householder and homeowner insurance. Premium income for non-life insurance by class of business, 21 5% 4% 23% 11% Motor vehicle Business Husdjur and real property Householder and homeowner Övrigt 15% Third-party liability Sickness and accident Pet 21% 22% Other Motor Företag och fastighet Hem och villa Trafik Sjuk och olycksfall Life insurance pays compensation when the person insured is injured or dies, and when the insured person reaches pensionable age. Insurance products that contain both insurance and savings components are called pension insurance. In 21 premium income for pension insurance policies amounted to SEK 212 billion. Pension insurance can be divided into occupational pension and private pension insurance. There are two basic taxation categories for the latter: pension insurance or endowment insurance. Premium income for life insurance broken down into occupational pension, private pension and endowment insurance, 21 27% 14% 3% 2% 19% 35% Tjänstepension, fond Tjänstepension, övrigt Privat försäkring, fond Privat försäkring, övrigt Kapitalförsäkring, fond Kapitalförsäkring, övrigt Occupational pension, unit-linked Occupational pension, other Private insurance, unit-linked Private insurance, other Endowment insurance, unit-linked Endowment insurance, other 12 FÖRSÄKRINGAR INSURANCE SWEDEN I SVERIGE 21 21

13 Premium income for non-life insurance companies amounted to SEK 63 billion in 21. The four largest insurance companies are Länsförsäkringar, If Skadeförsäkring, Trygg Hansa and Folksam. Premium income for non-life insurance by company, 21 19% 3% Länsförsäkringar If Skadeförsäkring Trygg-Hansa Folksam Övriga 16% 16% 19% Länsförsäkringar If Skadeförsäkringar Trygg Hansa Folksam Other Premium income for life insurance companies was SEK 212 billion in 21. The four largest life insurance companies are Alecta, Skandia Liv, SEB Trygg Liv and Swedbank Försäkring. Premium income for life insurance by company, 21 15% 12% 12% 6% 6% 6% 1% 7% 9% 8% 9% Alecta Skandia Alecta SEB Skandia Trygg Liv SEB Trygg Liv Folksam Folksam Swedbank Försäkring Swedbank Försäkring AMF Pension Avanza Avanza Länsförsäkringar Länsförsäkringar Nordea liv Nordea Liv Nordnet Other Nordnet Övriga FÖRSÄKRINGAR INSURANCE IN I SWEDEN SVERIGE 21 13

14 Insurance companies investments Insurance companies are major investors in the global economy. They manage a lot of money for the benefit of their customers. At the end of 21 insurance companies investment assets amounted to more than SEK 2,95 billion. That corresponds to about 9 per cent of Sweden s GDP. The capital is mainly invested in shares, mutual funds and debt securities, as well as real property and infrastructure. At the end of 21 the value of the insurance industry s investment assets was SEK 2,95 billion. Of this, life insurance companies accounted for 83 per cent. Insurance companies investment assets, 2-21 SEK billion Non-life insurance Life insurance Life insurance companies manage pension capital on behalf of their customers. They therefore have a long investment horizon that corresponds to these commitments. The value of life insurance companies investment assets was SEK 2,452 billion at the close of 21. Life insurance companies investment assets, 21 2% 4% 19% 2% Obligationer utgivna av svenska låntagare 5% Obligationer utgivna av utländska låntagare Bonds issued by Swedish borrowers Svenska aktier noterade Bonds issued by foreign borrowers 8% Swedish Svenska shares, aktier listed onoterade Swedish Utländska shares, aktier unlisted Foreign Investeringsfonder shares (svenska) och fondförsä Swedish Investeringsfonder investment funds (utländska) and unit-linked 1% insurance Korta placeringar 1% Foreign investment funds Byggnader och mark Short-term investments Övriga finansiella placeringar 38% 1% Land & buildings Other financial investments 14 FÖRSÄKRINGAR INSURANCE SWEDEN I SVERIGE 21 21

15 Non-life insurance companies manage premiums paid in to enable them to meet future claims payments. They therefore have a shorter investment horizon. Non-life insurance companies mainly invest in bonds issued by Swedish borrowers. The value of non-life insurance companies investment assets was SEK 498 billion at the end of 21. Non-life insurance companies investment assets, 21 4% 3% Obligationer utgivna av svenska låntagare 6% 38% Bonds Obligationer issued by Swedish utgivna borrowers av utländska låntagare 5% Bonds Svenska issued by foreign aktier noterade borrowers 5% Swedish Svenska shares, listed aktier onoterade Swedish shares, unlisted Utländska aktier 9% Foreign shares Investeringsfonder (svenska) och fondförsäkr Swedish investment funds and unit-linked insurance Investeringsfonder (utländska) Foreign investment funds Short-term Korta investments placeringar 5% 12% Land and Byggnader buildingsoch mark Other financial Övriga finansiella investmentsplaceringar 14% FÖRSÄKRINGAR INSURANCE IN I SWEDEN SVERIGE 21 15

16 Insurance Sweden P O Box 2443, SE 14 5 Stockholm Karlavägen 18 Tel Fax Part of Association of Swedish Insurers.