INSURANCE IN SWEDEN STATISTICS 214
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. With insurance you can be financially protected. 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. Through this brochure we want to provide an overall view of the insurance industry and describe its importance for the national economy.
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 of over SEK 31 billion in 214, they employed almost 2, people and invested around SEK 3,9 billion in the global economy. There are about 4 registered insurance companies in Sweden. Most of them are small local nonlife insurance companies. The market is concentrated into a few large companies and company groups. In nonlife insurance the five largest insurance companies/groups have 84 per cent of the market. In life insurance the five largest insurance companies/groups have 6 per cent of the market. The international presence has increased recent years. At present there are 53 foreign insurance companies represented via branches or agencies. Number of insurance companies 214 National insurance companies, of which 133 Unit-linked insurance companies 9 Other life insurance companies 32 Non-life insurance companies 92 Local insurance companies, of which 141 Large local companies 4 Small local companies 11 Friendly societies 66 Foreign companies, branches and agencies 52 Total 393 Source: Swedish Financial Supervisory Authority The insurance industry employs about 2, people. This is equivalent to a half percent of all gainfully employed people in Sweden. The share of women is 53 per cent compared to 5 per cent in other industries. There are many different jobs in the insurance industry. Common occupations are claims adjuster, service center and salesmen, but also economists and lawyers. The level of education has increased steadily from 17 per cent in 2 to 31 per cent in 212. Antal motorförsäkringar Antal trafikförsäkringar Number Antal anställda employed in the insurance industry 24 214 2 18 16 14 12 1 8 6 4 2 24 25 26 27 28 29 21 211 212 213 214 Total Women Men Source: Swedish Financial Supervisory Authority INSURANCE IN SWEDEN 3
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 214 non-life insurance companies paid out slightly less than SEK 51 billion in compensation for various claims. Life insurance companies paid out over SEK 86 billion in pensions and death benefit. Number of non-life insurance policies written (home, holiday home, boat) Non life insurance 24-214 The number of non-life insurance policies for homes, holiday homes and boats Million 6 amounted to almost 5.6 million in 214. Householder insurance stands for the 5 largest part, 3.1 million, and the largest increase. The number of homeowner 4 insurance amounts to 1.7 million. Home insurance consists of a package of various non-life insurance 3 policies that protect the policyholder s belongings in the event of theft or fire, for 2 example. The policies also provides travel insurance, insurance against assault 1 or liability to pay damages. The number of holiday home insurance and boat insurance has been stable and 24 25 26 27 28 29 21 211 212 213 214 amounted to 577 and 275 in 214. Holiday home Boat Householder Homeowner The number of claims for householder and homeowner, holiday home and boat insurance policies reported to non-life companies in 213 amounted to over 849,. Claims for all-risk policies have more than doubled during the latest 1-years period from 19, to 24,. Also claims for thefts, machinery- and water damage has also increased. The number of claims has increased by 74 per cent between 24 and 213. Number of claims reported due to type of damage 24-213 25 2 15 1 5 All-risk Machinery Other Water thefts damage in travel insurance Burglary Bicycle theft Storm due to natural disaster Fire Legal Liability Robbery protection and assault Water damage due to natural disaster 24 213 4 INSURANCE IN SWEDEN 214
Insurance companies paid claims of nearly SEK 8.7 billion in 213. The most common type of claim was on all-risk policies, while the largest type of claim in terms of value was fire damage. The average claim paid has been the same, around SEK 1.6, during the latest 1-years period. The average claim paid for fire damages amounted to SEK 85. and for bicycle thefts 3., but the claim paid varies due to the scale of the damage. Average claims paid by type of damage in home, holiday home and boat insurance 213 SEK 9 8 7 6 5 4 3 2 Average claims cost 213 is SEK 1.6 for each claim. 1 Fire Water Water Burglary Legal Storm Liability Robbery Machinery Other All-risk Bicycle damage due to natural disaster protection due to natural disaster and assault thefts in travel insurance thefts The average claim paid for fire damages has almost doubled between 24 and 213, although the number of fires occurred has been the same. Thus, there is a large variation depending on the scale of each fire and the value damaged. The average claim paid is relatively constant for storm and water damages. Development of average claim paid for fire, storm and water damage 24-213 SEK 1 9 8 7 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 Water damages due to natural disaster Water damages due to other causes Fire damages Storm damages due to natural disaster INSURANCE IN SWEDEN 5
Motor third-party liability insurance is a compulsory policy that among other things covers personal injury. In 213 it covered just over 5.8 million vehicles. Motor vehicle insurance covers damage to the vehicle itself, among other things, and covered around 6.5 million vehicles Number of motor vehicle and motor third party liability insurance policies written 24 213 Million 7 6 5 4 3 2 Antal motorförsäkringar Antal trafikförsäkringar 1 24 25 26 27 28 29 21 211 212 213 Number of motor vehicle insurance policies Number of third party liability insurance policies In 213 the number of claims reported was nearly 1,2., most of them for motor vehicle insurance. The trend for number of claims reported for motor third party liability insurance has been slightly downwards while the claim paid has increased. Claims reported for motor vehicle insurance have increased with 37 per cent between 24 and 213 while average claim paid has been constant. Insurance companies paid out compensation of SEK 11.5 billion. The average claim paid was SEK 16. in third party liability insurance and SEK 9. in motor vehicle insurance. The average claim paid in motor vehicle and motor third party liability insurance 24 213 SEK 18 16 14 12 1 8 6 4 2 24 25 26 27 28 29 21 211 212 213 Third Anmälda party skador liability trafikförsäkring insurance Motor Anmälda vehicle skador insurance motorförsäkring Utbetalad ersättning trafikförsäkring Utbetalad ersättning motorförsäkring 6 INSURANCE IN SWEDEN 214
Pet insurance The premium income for pet insurance has increased substantially and amounted to SEK 3.1 billion in 214. One reason to the increase could be that pets often nowadays are counted for as family members, entitled to e.g. health care if needed. Premium income for pet insurance 24 214 SEK million 3 5 3 2 5 2 1 5 1 5 24 25 26 27 28 29 21 211 212 213 214 Sickness insurance Sickness and accident insurance consists of several different types of policy. It includes child insurance, rehabilitation insurance, accident insurance and various forms of sickness insurance. Group insurance is normally written via a trade union. In 213 the number of sickness and accident insurance decreased by 5 per cent. Policies paid by employers and via trade unions decreased, while individual written policies increased. Number of sickness and accident policies written 26 213 Million 25 2 15 1 5 26 27 28 29 21 211 212 213 Employer-paid Group insurance Individual Arbetsgivarbetald Gruppförsäkring Individuell INSURANCE IN SWEDEN 7
The number of private health care insurance policies has increased in recent years. In 214 about 622, 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 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 27 214 Thousand 7 6 5 4 3 2 1 27 28 29 21 211 212 213 214 Employer-paid Arbetsgivarbetald Group Gruppförsäkring insurance Individual Individuell Savings The Swedish pension system has three parts: national pension, occupational pension and private pension. Over a quarter of the Swedish population (26 per cent) had private taxdeductible pension savings in 213. In the age group 2-64 the percentage was 36 per cent and in the age group 4-54 the percentate was over 45 per cent. Average savings for these were over SEK 6, per person. Due to changes in the tax-deduction the private pension savings are expected to decrease. Percentage of salaried employee who save in a private tax-deductible pension scheme by age 213 Procent 5 45 4 35 3 25 2 15 1 5 2-24 25-29 3-34 35-39 4-44 45-49 5-54 55-59 6-64 65-69 7-74 75- Note: Only includes pension insurance, not endowment insurance Source: Statistics Sweden 8 INSURANCE IN SWEDEN 214
Private pension insurance is classified for taxation purposes either as pension insurance or endowment insurance. Premiums paid for private pension and endowment insurance was more than SEK 74 billion in 214. 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. Premiums paid for private pension and endowment insurance, broken down into unit-linked insurance and other insurance 214 69% 5% 6% 2% Privat pensionförsäkring, fo Privat pensionförsäkring, öv Kapitalförsäkring, fond Kapitalförsäkring, övrig livfö Private pension insurance, unit-linked Private pension insurance, other life insurance Endowment insurance, unit-linked Endowment insurance, other life insurance Swedish households have more than doubled their financial savings in 1 years. The most common form of saving in 214 is occupational pension and together with private insurance savings it stands for nearly half of total savings (44 per cent). Other types of savings are bank accounts, shares or mutual funds. The financial crisis in 28 meant that, above all, savings in shares lost in value. Household financial savings by type of saving 24 214 SEK billion 8 7 6 5 4 3 2 1 24 25 26 27 28 29 21 211 212 213 214 Insurance savings, collective, excluding pension Shares Försäkringssparande, Insurance savings, individual kollektivt, ej PPM Försäkringssparande, Bonds individ Fondandelar Mutual fund units Aktier Bank deposits Obligationer Source: Statistics Sweden Bankinlåning INSURANCE IN SWEDEN 9
Insurance companies market shares and products 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. Gross Written Premium for non-life insurance companies amounted to slightly less than SEK 7 billion in 214. The five largest insurance companies are Länsförsäkringar, If, Folksam, Trygg Hansa and Moderna Försäkringar. Gross Written Premium for non-life insurance by company 214 3% 16% 16% 17% 3% 18% Länsförsäkringar If Skadeförsäkring Trygg-Hansa Folksam Moderna Försäkringar Övriga Länsförsäkringar If Folksam Trygg Hansa Moderna Försäkringar Other Premiums paid for life insurance was SEK 193 billion in 214. The five largest life insurance companies are Folksam, Skandia, Alecta, AMF and SEB Trygg Liv. 5% 7% Premiums paid for life insurance by company 214 4% 4% 7% 13% 7% 9% 17% 12% 15% Alecta Skandia Folksam SEB Skandia Trygg Liv Alecta Folksam AMF Swedbank Försäkring SEB Trygg Liv AMF Swedbank Pension Försäkring Avanza Nordea Liv Länsförsäkringar Länsförsäkringar SPP Nordea Handelsbanken Liv Nordnet Other Övriga Transferred capital is not included. 1 INSURANCE IN SWEDEN 214
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. 214 gross written premium for nonlife insurance companies was slightly less than SEK 7 billion. The most common non-life insurance is motor vehicle insurance closely followed by business and real property insurance, and householder and homeowner insurance. Gross Written Premium for non-life insurance by class of business 214 5% 4% 25% Motor 12% Företag och fastighet Hem och villa Trafik Motor Sjuk vehicleoch olycksfall Business Husdjur and real property 12% Householder Övrigtand homeowner Third-party liability Sickness and accident Pet 21% 21% Other 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 214 premiums paid for pension insurance policies amounted to SEK 193 billion. Pension insurance can be divided into occupational pension, private pension insurance and endowment insurance. Premiums paid for life insurance broken down into occupational pension, private pension and endowment insurance 214 14% 3% 19% 3% 27% 34% 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 Transferred capital is not included. INSURANCE IN SWEDEN 214 11
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 214 insurance companies investment assets amounted to more than SEK 3,878 billion. That corresponds to about 99 per cent of Sweden s GDP and 73 per cent of Stockholm stock exchange in 214. The capital is mainly invested in shares, mutual funds and debt securities, as well as real property and infrastructure. At the end of 214 the value of the insurance industry s investment assets was SEK 3,878 billion. Of this, life insurance companies accounted for 86 per cent. Insurance companies investment assets 24-214 SEK billion 4 3 5 3 2 5 2 1 5 1 Non-life insurance Life insurance GDP 5 24 25 26 27 28 29 21 211 212 213 214 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 3,348 billion at the close of 214. 33% Life insurance companies investment assets 214 1% 2% 13% 6% 2% 21% 12% 1% Obligationer utgivna av svenska låntagare Bonds issued by Swedish borrowers* Obligationer utgivna av utländska låntagare Bonds issued by foreign borrowers Svenska aktier Swedish shares Utländska aktier Foreign shares Investeringsfonder Investment funds Land Byggnader & building och mark Derivatives Other Övriga financial finansiella investments placeringar Short Korta term placeringar investments *Of which 31 % is issued by central and local government, 6 % by banks and mortage institutions and 9 % by other borrowers. 12 INSURANCE IN SWEDEN 214
Non-life insurance companies manage premiums paid in to enable them to meet future claims payments. They therefore have a shorter investment horizon. Nonlife insurance companies mainly invest in bonds issued by Swedish borrowers. The value of non-life insurance companies investment assets was SEK 53 billion at the end of 214. Non-life insurance companies investment assets 214 7% 34% Obligationer utgivna av svenska låntagare 9% Bonds issued by Swedish borrowers* Obligationer utgivna av utländska låntagare Bonds issued by foreign borrowers Svenska aktier 3% Swedish shares Utländska aktier Foreign shares 8% Investment Investeringsfonder funds Land & Byggnader building och mark Other financial Övriga finansiella investmentsplaceringar 9% Short term Korta investments placeringar 18% 12% *Of which 43 % is issued by central and local government, 46 % by banks and mortage institutions and 11 % by other borrowers. Insurance companies are major investors. The investment assets amounted to 99 per cent of GDP in 214. INSURANCE IN SWEDEN 214 13
Print: TMG STHLM April 215 Photo: Johnér Bildbyrå Layout: Jonas Ahlgren Design
Insurance Sweden PO Box 2443, SE-14 5 Stockholm Tel +46 8 522 785 www.svenskforsakring.se