Statistical Survey of Patient insurance 2021–2023: statistical tool for monitoring statistical data and profitability of patient insurance released

The FIN-FSA has published a statistical tool for monitoring statistical data and profitability of patient insurance on its website. Statistical data on patient insurance have been collected since 2021, so the FIN-FSA’s statistical tool includes data from that year through 2023. Going forward, the statistical data is planned to be updated annually. A link to the tool is provided at the end of this news article.

Since the entry into force of the Patient Insurance Act at the beginning of 2021, patient insurance in Finland has only been provided by insurance companies. Prior to this, until the end of 2020, insurance cover was also granted by the Patient Insurance Centre (PIC) on behalf of its member companies. Therefore, the data of the FIN-FSA's statistical survey are broken down into policies granted by an insurance companies and those received from the PIC, further. Both categories can be further broken down into public-sector insurance and private-sector insurance.

Premiums written by insurance companies for patient insurance totalled EUR 58.9 million in 2021, EUR 57.1 million in 2022 and EUR 65.4 million in 2023. The public sector accounts for a significantly larger share of the premiums written than the private sector, EUR 50.6 million and EUR 14.8 million in 2023, respectively.

The patient insurance market is highly concentrated, with the three largest providers holding significant shares: Finnish Mutual Patient Insurance Company 50.8%, Pohjola Insurance Ltd. 30.0%, and Fennia Mutual Insurance Company (9.3%) of premiums written for insurance granted by insurance companies in 2023. In public-sector insurance, the largest market share was Finnish Mutual Patient Insurance Company's 65.6%, and in the private sector, Pohjola Insurance Ltd’s 44.6%. A total of eight companies had premiums written for patient insurance granted by insurance companies in the 2021–2023 period.

The average underwriting result for insurance granted by insurance companies in 2021–2023 was EUR 2.3 million, comprising EUR 4.3 million from positive changes to the calculation principles of technical provisions and other adjustment items. Hence, the adjusted underwriting result was a loss of EUR 2.1 million. Since the volume of technical provisions in patient insurance is high relative to premiums written (3.5 times in 2023), changes in their calculation principles (such as the discount rate for pension liabilities) have a significant impact on the result of the insurance class.

In 2021–2023, the combined expense ratio of insurance granted by insurance companies was 97% on average, while the adjusted combined ratio was 104%. The combined ratio for the public sector was 99% on average (103% on an adjusted basis) and for the private sector 91% (107% adjusted).

Due to the high relative volume of technical provisions, the investment result also has a significant impact on the result of patient insurance. In 2021–2023, the average annual imputed result of investment activities attributable to patient insurance granted by insurance companies was EUR 1.7 million, including EUR 0.3 million from the unwinding of discount rates. The underwriting result and the result of investment activities together constitute the overall result of patient insurance granted by insurance companies, which was a profit of EUR 3.7 million on average in 2021–2023.

The underwriting result for policies received from the PIC in 2021–2023 averaged EUR -0.3 million, with changes to calculation principles and other adjustments accounting for EUR -7.1 million. Hence, the adjusted underwriting result was a profit of EUR 6.7 million. Therefore, the total underwriting result for patient insurance, calculated by aggregating the underwriting results of policies granted by insurance companies and those received from the PIC on average in 2021–2023, was a profit of EUR 1.7, and on an adjusted basis, a profit of EUR 4.6 million.

Statistical tool for patient insurance

For further information, please contact:

Iiro Marttila, Senior Actuary, tel. +358 9 183 5483 or iiro.marttila(at)finanssivalvonta.fi