Sampo Group operates in the insurance sector in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia and the United Kingdom.
P&C insurance markets
Property and casualty insurance (or non-life insurance) is a collective term that is used for property insurance, liability insurance, reinsurance, and accident and sickness insurance.
In other words, it refers to insurance that protects against physical or economic damage. P&C insurance covers various risks and uncertain events that may cause damage to the property of an individual. Typical examples of P&C insurances include household, homeowner, motor, and accident insurance. Supplementary insurances include travel, marine, forest, and livestock insurance. When determining premium costs, the insurance companies must price in both known and unknown (emerging) risks, and also be able to price in these risks accurately in what is a competitive insurance market.
Megatrends in P&C insurance
Nordic P&C insurance markets
The Nordic insurance market is in many ways a special market and it is considerably different from the rest of the European insurance markets. The Nordic P&C insurance market is relatively concentrated, which means that a fairly small number of major insurers have a large share of the Nordic P&C insurance market. Many insurance companies have developed inter-Nordic corporate structures. One reason for this is the goals of the insurance companies to derive benefits from the similarities that exist in the Nordic insurance markets and their regulatory frameworks.
Nordic market shares
The four largest P&C players account for approximately 70 - 90 per cent of the various markets in Norway, Finland, and Sweden. Conversely, the market is less concentrated in Denmark. The largest insurance companies are often established in more than one Nordic country. Whilst the competitive situation is largely unchanged, it varies somewhat across the Nordic countries and the different product lines.
Premiums by country
In the Nordic region, customer retention levels are high, with renewal rates of approximately 80 - 90 per cent. Furthermore, the market is also characterized by positive macroeconomic development and low expense ratios in the range of 15 - 20 per cent, which means that the P&C insurance companies are very efficient. The internet penetration is high in the Nordic market. Nordic P&C market is also characterized by low combined ratios.
Premiums by insurance class
The Nordic P&C market has grown steadily over recent years with the average market growth since 2005 amounting to 3 per cent. The biggest insurance class in the Nordic P&C insurance markets is motor vehicle insurance. In the Nordic countries, the motor vehicle insurance class consists of compulsory motor vehicle insurance as well as complementary motor vehicle insurance.