P&C insurance markets by country
Specific characteristics of the Finnish, Swedish, Norwegian, Danish and the UK P&C insurance markets.
The Finnish P&C insurance market
One of the special characteristics of the Finnish insurance sector is that statutory lines generate a major share of premiums written. In year 2021, two-thirds of all premiums written came from statutory insurance, i.e. employee pension, workers’ compensation and motor liability insurances.
Another typical feature of the Finnish insurance market is high concentration. A total of 90 per cent of all premiums were written by the four largest life and P&C insurance companies or groups.
The Finnish insurance market has been developing, and the overall demand for insurance is high. According to studies, nearly half of all Finnish people consider voluntary insurance policies to be a necessary supplement to social security benefits.
In 2021, P&C total premiums written increased by 3.1 per cent to EUR 5 bn. Companies based in Finland paid P&C claims amounting to EUR 3.3 bn in 2021. The balance in the technical account before the change in equalisation provision (premiums earned less claims incurred and operating expenses) increased by 56.3 per cent to EUR 525 million. Also, the P&C insurers’ combined ratio was at the lowest level ever at 88.8 per cent. The profitability of P&C insurance operations was therefore exceptionally good.
Insurance premiums, 2021
Premiums net of reinsurance (insurance activities)
Gross premiums by class of insurance, 2021
Market share, 2021
Combined ratio
Paid claims
Leakages, break-ins and fires
Number of registered passenger cars
Traffic accidents involving injuries and fatalities
House price index (2015=100)
Regulation in Finland
As all of the Nordic countries are either members of the EU or have signed the EEA agreement, the EU directives and regulations play a major role in insurance regulations. National regulations also play an important role in terms of governing the Nordic insurance markets. Most of the differences between national legislation relates to the taxation of insurance-related incomes or the amount of statutory insurances. The Nordic countries differ most from each other in the sector of life insurance and motor vehicle insurance.
The operations of insurers are governed by several laws, the most important of which are the Insurance Companies Act and the Insurance Contracts Act. Furthermore, each statutory insurance line is also governed by its own Act. The Finnish insurance sector is monitored by the Finnish Financial Supervisory Authority.
The Swedish P&C insurance market
Sweden is the largest Nordic P&C insurance market. The total Nordic P&C markets size is estimated at EUR 30 billion (in 2020). Sweden has an estimated 31 per cent share of the Nordic P&C markets.
Net premiums of reinsurance in the Swedish P&C insurance market have grown steadily, with average annual growth of 5 per cent over the past 3 years.
Swedish insurance markets have a very high concentration of insurance companies. In 2021, the four largest insurers wrote almost 80 per cent of all premiums.
The claims costs for damages paid were reduced in 2020 and 2021 as the number of claims decreased during the pandemic. The most common compensation payments in 2021 were for claims associated with traffic and motor vehicles – these claims accounted for more than a quarter (28 per cent) of the compensation paid. In 2021, claims paid to companies was approximately 16 per cent of the total claim payments, while the remainder was paid to households.
Insurance premiums, 2021
Premiums net of reinsurance (insurance activities)
Paid claims by class of insurance
Market share, 2021
Combined ratio
Number of registered passenger cars
Traffic accidents involving injuries and fatalities
House price index (2015=100)
Regulation in Sweden
As all of the Nordic countries are either members of the EU or have signed the EEA agreement, the EU directives and regulations play a major role in insurance regulations. National regulations also play an important role in terms of governing the Nordic insurance markets. Most of the differences between national legislation relates to the taxation of insurance-related incomes or the amount of statutory insurances. The Nordic countries differ most from each other in the sector of life insurance and motor vehicle insurance.
There are two different legislative blocks that regulate the activities of insurance companies in Sweden: The Insurance Business Act (which relates to the establishment, operations and overall supervision of insurance companies) and The Insurance Contracts Act (which regulates the relationship between the insurer and the insured). The Swedish Financial Supervisory Authority (FSA) is responsible for the regulation and supervision of insurance companies.
The Norwegian P&C insurance market
The total Nordic P&C markets size is estimated at EUR 30 billion (in 2020). Norway has an estimated 24 per cent share of the market, which makes it the third largest country in the Nordic P&C insurance markets. The value of the P&C insurance sector in Norway was approximately EUR 8.5 billion in 2021. The sector experienced an increase of 18 per cent in earned premiums in 2021 compared to the previous year.
In Norway, the largest insurance class measured by the gross premiums is motor insurance with 32 per cent share of total gross premiums. The second largest insurance class is fire and other damage to property.
The Norwegian insurance market is highly concentrated. A total of 75 per cent of all premiums were written in 2021 by the four largest life and P&C insurance companies or groups.
Insurance premiums, 2021
Premiums net of reinsurance (insurance activities)
Gross premiums by class of insurance, 2021
Market share, 2021
Combined ratio
Number of registered passenger cars
Traffic accidents involving injuries and fatalities
Motor vehicle claims occurred
Claims occurred from insurance against fire and other property damage
House price index (2015=100)
Regulation in Norway
As all of the Nordic countries are either members of the EU or have signed the EEA agreement, the EU directives and regulations play a major role in insurance regulations. National regulations also play an important role in terms of governing the Nordic insurance markets. Most of the differences between national legislation relates to the taxation of insurance-related incomes or the amount of statutory insurances. The Nordic countries differ most from each other in the sector of life insurance and motor vehicle insurance.
The Norwegian Financial Supervisory Authority (FSA) is responsible for the regulation and supervision of insurance companies. It is an independent government agency that has been legitimized by the Norwegian Parliament.
The Danish P&C insurance market
Denmark has an estimated 29 per cent share of the Nordic P&C market, which makes it the second largest country in the Nordic P&C insurance market.
The Danish insurance market does not have the same level of high concentration as the other Nordic countries. The four largest life and P&C insurance companies or groups wrote approximately 55 per cent of all premiums in 2021.
There are some statutory insurances for everyone in Denmark. These include e.g. liability insurance for motor vehicles, dog insurance and insurance against fire for real estates. Employers are also obligated to take out injury insurance for their employees, which covers all work-related injuries.
In Denmark, the largest insurance class measured by the gross premiums is fire and other damage to property. The second largest insurance class is motor vehicles. Returns of P&C insurers have remained relatively steady despite the increased number of weather-related claims.
Insurance premiums, 2021
Gross premiums by class of insurance, 2021
Premiums net of reinsurance (insurance activities)
Market shares, 2021
Combined ratio
Number of registered passenger cars
Traffic accidents involving injuries and fatalities
Total P&C claims
House price index (2015=100)
Regulation in Denmark
As all of the Nordic countries are either members of the EU or have signed the EEA agreement, the EU directives and regulations play a major role in insurance regulations. National regulations also play an important role in terms of governing the Nordic insurance markets. Most of the differences between national legislation relates to the taxation of insurance-related incomes or the amount of statutory insurances. The Nordic countries differ most from each other in the sector of life insurance and motor vehicle insurance.
The Danish Financial Supervisory Authority (FSA) is responsible for the regulation and supervision of insurance companies.
The UK P&C insurance market
The United Kingdom insurance sector is very developed and large, being the largest in Europe and fourth largest insurance market globally. Size of the total insurance sector is about 129 per cent of the United Kingdom’s GDP measured by balance sheet assets. In 2020, the industry employed more than 114,000 direct employees.
In the UK, there are more than 360 authorized insurance companies of which approximately 170 companies are concentrated to the non-life insurance sector. However, the number of authorized companies has been decreasing since 2016. Bank of England compile the list of authorized companies. Based on the number of insurers, it can be concluded that the insurance market is not highly concentrated. In 2021, the ten largest non-life insurers wrote approximately 37 per cent of all non-life premiums.
In the UK, the largest non-life insurance class measured by the gross premiums is fire and other damage to property. The second largest insurance class is general liability and the third is motor vehicles.
Insurance premiums, 2021
Premiums written by classes of non-life insurance, 2021
Premiums net of reinsurance (insurance activities)
Total P&C claims paid
Paid net claims by class of insurance, 2021
Market shares, 2021
Combined ratio
Number of first time registered cars
Traffic accidents involving injuries and fatalities
House price index (2015=100)
Regulation
United Kingdom
The insurance industry is governed by a numerous statutes primarily the Financial Services and Markets Act 2000 and the Insurance Act 2015. Although there are separate legal systems and differences between the various legal jurisdictions of the United Kingdom, the laws relating to the insurance market are substantially the same.
Insurance providers are either dual regulated, by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), if their activities include insurance underwriting, or solo regulated by the FCA if their activity involves insurance intermediation and no carrying of insurance risk. Under the UK’s Road Traffic Act the purchase of motor insurance is compulsory for those wishing to drive in the United Kingdom, requiring that, at a minimum, a driver be insured against liability for injury to other persons and damage to their property in the event of an accident. Other personal lines general insurance products are not compulsory.
Gibraltar
Insurance companies in Gibraltar are authorised and regulated by the Gibraltar Financial Services Commission. Under the Gibraltar Authorisation Regime, such firms can operate in the UK under passporting arrangements which recognise regulatory equivalence with UK prudential and conduct regulatory requirements. Insurance companies in Gibraltar also comply with the European Union’s Solvency II legislation.
Supervisory Authorities of Sampo Group Entities Operating in the UK Market:
Sources: Finance Finland (FFI), Financial Supervisory Authority (FIN-FSA), Insurance Sweden, Statistics Sweden, Statistics Norway, Finance Norway, StatBank Denmark, OECD, Insurance & Pension Denmark, Statista, OECD, International Monetary Fund (UK, Financial Sector Assessment Program)
Updated