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INSURANCE IN SWEDEN STATISTICS 2015
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.
Security for the individual – growth for the economy
Source: Swedish Financial Supervisory Authority
I N S U R A N C E I N S W E D E N 2 0 1 5 • 3
The insurance industryThe 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 322 billion in 2015, they
employed almost 20,000 people and invested around SEK 4,000 billion in the global economy.
There are 369 registered insurance companies in Sweden. Most of them are small local non-life insurance com-panies. The market is concentrated into a few large companies and com-pany groups. In non-life insurance the five largest insurance companies/groups have 83 per cent of the market. In life insurance the five largest insu-rance companies/groups have 59 per
cent of the market.
The insurance industry employs about 20,100 people. This is equivalent to 0,7 percent of all gainfully employed people in Sweden. The share of women is 53 per cent compared to 50 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 2000 to 31 per cent in 2012.
Number of insurance companies 2015
Source: Swedish Financial Supervisory Authority
Number employed in the insurance industry 2006–2015
Total
Women
Men
National insurance companies, of which 127
Unit-linked insurance companies 9
Other life insurance companies 30
Non-life insurance companies 88
Local insurance companies, of which 138
Large local companies 41
Small local companies 97
Friendly societies 64
Foreign companies, branches and agencies 40
Total 369
0
5 000
10 000
15 000
20 000
25 000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Antal motorförsäkringar
Antal trafikförsäkringar
Antal anställda
4 • I N S U R A N C E I N S W E D E N 2 0 1 5
Insurance in SwedenIn 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
2015 non-life insurance companies paid out slightly less than SEK 45 billion in compensation for
various claims. Life insurance companies paid out over SEK 91 billion in pensions and death benefit.
The number of non-life insurance poli-cies for homes, holiday homes and boats amounted to almost 5.7 million in 2015. Householder insurance stands for the largest part, 3.1 million, and the largest increase. The number of homeowner insurance amounts to 1.7 million. Home insurance consists of apackage of various non-life insurancepolicies that protect the policyholder’s belongings in the event of theft or fire, for example. The policies also provides travelinsurance, insurance against assaultor liability to pay damages. The number of holiday home insurance and boat insurance has been stable and amounted to 575 000 and 270 000 in 2015.
The number of claims for householder and homeowner, holiday home and boat insurance policies reported to non-life companies in 2014 amounted to over 868,000. Claims for all-risk policies have more than doubled during the latest 10-years period from 115,000 to 246,000. The number of claims has increased by 60 per cent between 2005 and 2014.
Number of non-life insurance policies written (home, holiday home, boat) 2006-2015
Number of claims reported due to type of damage 2005 and 2014
Non life insurance
2005 2014
Holiday home Boat Householder Homeowner
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million
0
50
100
150
200
250
300
All-risk Machinery Other thefts
in travel
insurance
Water damage
Burglary Bicycle theft
Storm due
to natural disaster
Fire Legal protection
Liability Robbery and
assault
Water damage due to natural disaster
I N S U R A N C E I N S W E D E N 2 0 1 5 • 5
Insurance companies paid claims of nearly SEK 8.9 billion in 2014. 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 10.300, during the latest 10-years period. The average claim paid for fire damages amounted to SEK 55.800 and for bicycle thefts 3.200, 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 2014
Holiday home Boat Householder Homeowner
The average claim paid for fire damages varies a lot. During year 2014 there were more fire damages than earlier, but the total claims cost was nearly at the same level. This means that the average claims cost for fire damages has decreased drastically. The average claim paid is relatively constant for storm and water damages.
Development of average claim paid for fire, storm and water damage 2005-2014
Water damages due to natural disaster
Water damages due to other causes
Fire damages
Storm damages due to natural disaster
0
10 000
20 000
30 000
40 000
50 000
60 000
SEK
Average claims cost 2014 is SEK 10.300
for each claim.
Other thefts
in travel insurance
Fire Water Burglary Liability Machinery All-riskBicyclethefts
Robbery and
assault
Legal protection
Storm due to
natural disaster
Water damage due to natural disaster
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SEK
6 • I N S U R A N C E I N S W E D E N 2 0 1 5
In 2014 the number of claims repor-ted was nearly 1,200.000, 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 40 per cent between 2005 and 2014 while average claim paid has been con-stant. Insurance companies paid out compensation of SEK 11.5 billion. The average claim paid was SEK 13.000 in third party liability insurance and SEK 8.000 in motor vehicle insurance.
The average claim paid in motor vehicle and motor third party liability insurance 2005–2014
Third party liability insurance
Motor vehicle insurance
Motor third-party liability insurance is a compulsory policy that among other things covers personal injury. In 2014 it covered just over 5.8 million vehic-les. 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 2005–2014
Number of motor vehicle insurance policies
Number of third party liability insurance policies
0
1
2
3
4
5
6
7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Antal motorförsäkringar
Antal trafikförsäkringar
Milion
Utbetalad ersättning trafikförsäkring
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Anmälda skador trafikförsäkring
Anmälda skador motorförsäkring Utbetalad ersättning motorförsäkring
SEK
I N S U R A N C E I N S W E D E N 2 0 1 5 • 7
The premium income for pet insurance has increased substantially and amounted to SEK 3.3 billion in 2015. 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.
Sickness and accident insurance con-sists of several different types of policy. It includes child insurance, rehabilita-tion insurance, accident insurance and various forms of sickness insurance. Group insurance is normally written via a trade union.
Premium income for pet insurance 2006–2015
Number of sickness and accident policies written 2006–2014
Pet insurance
Sickness insurance
Employer-paid Group insurance Individual
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million SEK
0
5
10
15
20
25
2006 2007 2008 2009 2010 2012 2013 20142011
Arbetsgivarbetald Gruppförsäkring Individuell
Million
8 • I N S U R A N C E I N S W E D E N 2 0 1 5
The Swedish pension system has three parts: national pension, occupational pension and private pension. A quarter of the Swedish population (25 per cent) had private tax-deductible pension savings in 2014. In the age group 20-64 the percentage was 34 per cent and in the age group 40-49 the percentate was over 45 per cent. Average savings for these were over SEK 6,300 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 2014
Note: Only includes pension insurance, not endowment insurance
Source: Statistics Sweden
Savings
The number of private health care insurance policies has increased in recent years. In 2015 about 648,000 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 2006–2015
Employer-paid Group insurance Individual
0
100
200
300
400
500
600
700
20072006 2008 2009 2010 2011 2012 2013 2014 2015
Arbetsgivarbetald Gruppförsäkring Individuell
Thousand
0
5
10
15
20
25
30
35
40
45
50Percentage
20-24-19 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-
I N S U R A N C E I N S W E D E N 2 0 1 5 • 9
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 85 billion in 2015. The policies classified as endowment insu-rance constitute over 90 per cent of all private pension insurance. Private pension insurance can be divided into unit-linked insurance, other life insurance and deposit insurance.
Swedish households have more than doubled their financial savings in 10 years. The most common form of saving in 2015 is occupational pension and together with private insurance savings it stands for nearly half of total savings (46 per cent). Other types of savings are bank accounts, shares or mutual funds. The financial crisis in 2008 meant that, above all, savings in shares lost in value.
Premiums paid for private pension insurance 2015
Household financial savings by type of saving 2006–2015
Source: Statistics Sweden
Insurance savings, collective, excluding pension
Insurance savings, individual
Mutual fund units
Shares
Bonds
Bank deposits
Private pension insurance, unit-linked 2,04%
Private pension insurance, deposit 0,05%
Private pension insurance, other 2,15%
Endowment insurance, unit-linked 19,56%
Endowment insurance, deposit 58,91%
Endowment insurance, other 17,28%
Privat pensionförsäkring, fond
Privat pensionförsäkring, övrig livförsäkring
Kapitalförsäkring, fond
Kapitalförsäkring, övrig livförsäkring
58.91%
17.28%
2.04% 0.05%
19.56%
2.15%
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
20082006 2007
SEK billion
2009 2010 2011 2013 2014 20152012
Försäkringssparande, kollektivt, ej PPM Försäkringssparande, individ
Fondandelar Aktier
Obligationer Bankinlåning
10 • I N S U R A N C E I N S W E D E N 2 0 1 5
Insurance companies’ market shares and productsThe 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 insu-
rance, 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.
Premiums paid for life insurance was SEK 222 billion in 2015. The five largest life insurance companies are Folksam, Alecta, Skandia, AMF and SEB Pension.
Gross Written Premium for non-life insurance companies amounted to SEK 74 billion in 2015. The five largest insurance companies are Länsförsäkringar, If, Folksam, Trygg Hansa and Moderna Försäkringar.
Gross Written Premium for non-life insurance by company 2015
Premiums paid for life insurance by company 2015
Transferred capital and adjustment of paid-up values are not included.
Länsförsäkringar
If Skadeförsäkring
Trygg-Hansa
Folksam
Moderna Försäkringar
Övriga Länsförsäkringar 30%
If 18%
Folksam 16%
Trygg Hansa 15%
Moderna Försäkringar 3%
Other 18%18%16%
15%
18%
3%
30%
Alecta
Skandia
SEB Trygg Liv
Folksam
Swedbank Försäkring
AMF Pension
Avanza
Länsförsäkringar
Nordea Liv
Nordnet
Övriga
Folksam 16%
Alecta 15%
Skandia 13%
AMF 9%
SEB Pension 7%
Nordea Liv 7%
Swedbank Försäkring 6%
Länsförsäkringar 5%
Handelsbanken 4%
SPP 3%
Other 15%
13%
9%7%
7%
6%
5%
4%
15%
3%
16%
15%
I N S U R A N C E I N S W E D E N 2 0 1 5 • 11
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. 2015 gross written premium for non-life insurance companies was SEK 74 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 2015
Premiums paid for life insurance broken down into occupational pension, private pension and endowment insurance 2015
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 2015 premiums paid for pension insurance policies amounted to SEK 222 billion. Pension insurance can be divided into occupational pension, private pension insurance and endowment insurance.
Transferred capital and adjustment of paid-up values are not included.
Motor vehicle 26%
Business and real property 21%
Householder and homeowner 21%
Third-party liability 11%
Sickness and accident 12%
Pet 4%
Other 5%
Motor
Företag och fastighet
Hem och villa
Trafik
Sjuk och olycksfall
Husdjur
Övrigt
21%21%
11%
4%
12%
5%26%
Tjänstepension, fond
Tjänstepension, övrigt
Privat försäkring, fond
Privat försäkring, övrigt
Kapitalförsäkring, fond
Kapitalförsäkring, övrigt
Occupational pension, unit-linked 22,10%
Occupational pension, deposit 2,94%
Occupational pension, other 31,15%
Endowment insurance, unit-linked 8,57%
Endowment insurance, deposit 25,81%
Endowment insurance, other 7,57%
Private insurance, unit-linked 0,90%
Private insurance, deposit 0,02%
Private insurance, other 0,94%31,15%
8,57%
25,81%
7,57%
0,90% 0,94%0,02%
22,10%
2,94%
12 • I N S U R A N C E I N S W E D E N 2 0 1 5
Insurance companies’ investmentsInsurance companies are major investors in the global economy. They manage a lot of money
for the benefit of their customers. At the end of 2015 insurance companies investment assets
amounted to more than SEK 4,008 billion. That corresponds to about 96 per cent of Sweden’s
GDP and 69 per cent of Stockholm stock exchange in 2015. The capital is mainly invested in
shares, mutual funds and debt securities, as well as real property and infrastructure.
At the end of 2015 the value of the insurance industry’s investment assets was SEK 4,008 billion. Of this, life insurance companies accounted for 88 per cent.
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 3,512 billion at the close of 2015.
Life insurance companies’ investment assets 2015
Bonds issued by Swedish borrowers* 22%
Bonds issued by foreign borrowers 9%
Swedish shares 12%
Foreign shares 13%
Investment funds 34%
Land & building 2%
Derivatives 1%
Other financial investments 5%
Short term investments 2%
*Of which 32 % is issued by central and local government, 59 % by banks and mortage institutions and 9 % by other borrowers.
Insurance companies’ investment assets 2006–2015
0
1 000
2 000
3 000
4 000
5 000
6 000
2006 20082007 2009 2010 2011 2012 2013 2014 2015
SEK billion
Non-life insurance
Life insurance
GDP
Stockholm stock exchange
Korta placeringar
Obligationer utgivna av svenska låntagare
Obligationer utgivna av utländska låntagare
Svenska aktier
Utländska aktier
Investeringsfonder
Byggnader och mark
Derivat
Övriga finansiella placeringar
13%
12%
34%
2%
2%5%1% 22%
Insurance companies are major investors. The investment assets amounted to 96 per cent of GDP in 2015 and 69 per cent of the Stockholm stock exchange.
I N S U R A N C E I N S W E D E N 2 0 1 5 • 13
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 497 billion at the end of 2015.
Non-life insurance companies’ investment assets 2015
Bonds issued by Swedish borrowers* 31%
Bonds issued by foreign borrowers 11%
Swedish shares 20%
Foreign shares 9%
Investment funds 10%
Land & building 4%
Other financial investments 9%
Short term investments 6%
*Of which 32 % is issued by central and local government, 56 % by banks and mortage institutions and 12 % by other borrowers.
Obligationer utgivna av svenska låntagare
Obligationer utgivna av utländska låntagare
Svenska aktier
Utländska aktier
Investeringsfonder
Byggnader och mark
Övriga finansiella placeringar
Korta placeringar
11%20%
6%
9%
4%
10%
9%
31%
Print: TMG STHLM April 2016 Photo: Istockphoto Layout: Jonas Ahlgren Design
Insurance Sweden PO Box 24043, SE-104 50 Stockholm Tel +46 8 522 785 00 www.svenskforsakring.se
