News release 3 November 2014 – 14/2014

Profitability analysis of statutory workers' compensation insurance in 2004–2013: business profitability and return are still good, market concentration increased further

In 2013, the market for statutory workers' compensation insurance became increasingly concentrated due to corporate restructuring: the market share of the four largest companies rose to 90%. In the previous year, they accounted for 84% of the total business. In 2013, there were 11 Finnish insurance companies pursuing statutory workers' compensation insurance business in Finland.

From the premium-setting perspective, the underwriting result improved only somewhat from the previous year. The result was boosted by a higher level of premiums earned and a lower level of claims. The result was in turn weakened by the low level of market interest rates and the low risk-free return on net technical provisions. In 2013, the result relative to premiums written was 13%, i.e. the same as the average for the review period 2004–2013. Premiums written amounted to EUR 618 million in 2013.

From the profitability perspective, 2013 was weaker than 2012 as regards statutory workers' compensation insurance. Fair value return on investment was only about one-third of the level of the previous year, which was the main reason behind the weaker result. The underwriting result was however higher than the 10-year average. In 2013, the underwriting result was 23%, compared to a 10-year average of about 13%.

The return on capital employed in the statutory workers' compensation insurance business was high, i.e. 23%. The average for the whole review period 2004–2013 was 18%. 

FIN-FSA's annual analysis

The Financial Supervisory Authority (FIN-FSA) publishes an analysis of the profitability of statutory workers' compensation insurance once a year. In addition to data on the total business, the analysis includes corporate-specific figures. The analysis presents information on insurance premiums, companies' market shares and results, and the combined expense ratio.

The analysis is supplemented by statutory workers' compensation insurance statistics and a separate Excel table containing a summary of data collected on Finnish insurance companies.

For further information, please contact

  • Pirkko Welin-Siikaluoma, Chief Actuary, tel. +358 10 831 5533


The corresponding news release was published in Finnish on 31 October, 2014.