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 2022, 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 2022, P&C total premiums written increased by 3 per cent to EUR 5.1 billion. Claims costs of the Finland-based companies amounted to EUR 3.5 billion in 2022. The balance in the technical account before the change in equalisation provision (premiums earned less claims incurred and operating expenses) increased by 120 per cent to EUR 1.1 billion. Also, the P&C insurers’ combined ratio was at the lowest level ever at 76.7 per cent. The material margin improvement in 2022 was partly driven by the increase in discount rates.

Insurance premiums, 2022

Chart: Insurance premiums, Finland, 2022

Premiums net of reinsurance (insurance activities)

Graph: Premiums net of reinsurance (Insurance activities), Finland

Gross premiums by class of insurance, 2022

Chart: Gross premiums by class of insurance, Finland, 2022

Market share, 2022

Chart: Market shares, Finland, 2022

Combined ratio

Chart: Combined ratio, Finland

Paid claims

Graph: Paid claims, Finland

Leakages, break-ins and fires

Graph: Leakages, break-ins and fires, Finland

Number of registered passenger cars

Graph: Number of registered passenger cars, Finland

Traffic accidents involving injuries and fatalities

Graph: Traffic accidents involving injuries and fatalities, Finland

House price index (2015=100)

Chart: House price index, Finland

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 2022). Sweden has an estimated 31 per cent share of the Nordic P&C markets. 

Net premiums of reinsurance in Sweden P&C insurance market have grown steadily, with average annual growth of 1 per cent over the past 3 years. Without the influence of the exchange rate fluctuations between the Swedish Krona and the Euro, this growth would have been augmented by an additional 2 per cent.

Swedish insurance markets have a very high concentration of insurance companies. In 2022, the four largest insurers wrote over 80 per cent of all premiums.

The claims paid were reduced in 2021 and 2022 as the number of claims decreased during the pandemic. The compensations were most often paid in 2022 for claims associated with traffic and motor vehicles – these claims accounted for more than a quarter (32 per cent) of the total compensation paid. In 2022, claims paid to companies was approximately 17 per cent of the total claim payments, while the remainder was paid to households.

Insurance premiums, 2022

Graph: Insurance premiums, Sweden

Premiums net of reinsurance (insurance activities)

Graph: Premiums net of reinsurance (insurance activities), Sweden

Paid claims by class of insurance

Graph: Paid claims by class of insurance, Sweden

Market share, 2022

Graph: Market share, Sweden

Combined ratio

Graph: Combined ratio, Sweden

Number of registered passenger cars

Graph: Number of registered passenger cars, Sweden

Traffic accidents involving injuries and fatalities

Graph: Traffic accidents involving injuries and fatalities, Sweden

House price index (2015=100)

Graph: House price index (2015=100) Sweden

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 2022). Norway has an estimated 26 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 8.9 billion in 2022. The sector experienced an increase of approximately 5 per cent in earned premiums in 2022 compared to the previous year.

In Norway, the largest insurance class measured by the gross premiums is motor insurance services with 31 per cent share of total premiums. The second largest insurance class is fire and other damage to property.

The Norwegian insurance market is highly concentrated. A total of approximately 77 per cent of all premiums were written in 2022 by the four largest life and P&C insurance companies or groups.

Insurance premiums, 2022Graph: Insurance premiums, Norway

Premiums net of reinsurance (insurance activities)

Graph: Premiums net of reinsurance (Insurance activities), Norway

Gross premiums by class of insurance, 2022

Graph: Earned premiums by class of insurance, Norway

Market share, 2022

Graph: Market shares, Norway

Combined ratio

Graph: Combined ratio, Norway

Number of registered passenger cars

Graph: Number of registered passenger cars, Norway

Traffic accidents involving injuries and fatalities

Graph: Traffic accidents involving injuries and fatalities, Norway

Motor vehicle claims occurred

Graph: Motor vehicle claims occurred, Norway

Claims occurred from insurance against fire and other property damage

Graph: Claims occurred from insurance against fire and other property damage, Norway

House price index (2015=100)

Graph: House price index, Norway

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 28 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 2022.

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 accident and health. Returns of P&C insurers have remained relatively steady despite the increased number of weather-related claims.

Insurance premiums, 2022

Graph: Insurance premiums, Denmark

Gross premiums by class of insurance, 2022

Graph: Gross premiums by class of insurance, Denmark

Premiums net of reinsurance (insurance activities)

Graph: Premiums net of reinsurance (Insurance activities), Denmark

Market shares, 2022

Graph: Market shares, Denmark

Combined ratio

Graph: Combined ratio Denmark

Number of registered passenger cars

Graph: Number of registered passenger cars, Denmark

Traffic accidents involving injuries and fatalities

Graph: Traffic accidents involving injuries and fatalities, Denmark

Total P&C claims

Graph: Total P&C claims, Denmark

House price index (2015=100)

Graph: House price index, Denmark

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 P&C insurance sector is around EUR 78 billion in terms of premiums (2021). In 2020, the industry employed more than 114,000 direct employees.

In the UK, there are around 410 authorised insurance companies of which approximately 282 companies are concentrated to the non-life insurance sector. The number of authorised companies has been decreasing since 2016, however, an increase is to be expected due to EU insurers completing their restructuring of UK business. Bank of England compile the list of authorised companies. Based on the number of insurers, it can be concluded that the insurance market is not highly concentrated. In 2022, the nine largest non-life insurers wrote approximately 32 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

Graph: Insurance premiums, UK

Premiums written by classes of non-life insurance, 2021

Graph: Premiums written by classes of non-life insurance, UK

Premiums net of reinsurance (insurance activities)

Graph: Premiums net of reinsurance (insurance activities), UK

Total P&C claims paid

Graph: Total P&C claims paid, UK

Paid net claims by class of insurance, 2022

Graph: Paid net claims by class of insurance, UK

Market shares, 2022

Graph: Market share, UK

Combined ratio

Graph: Combined ratio, UK

Number of first time registered cars

Graph: Number of first time registered cars, UK

Traffic accidents involving injuries and fatalities

Graph: Traffic accidents involving injuries and fatalities, UK

House price index (2015=100)

Graph: House price index, UK

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), Bank of England

Updated