Supervision release 21 December 2020 – 84/2020

FIN-FSA’s findings from supervision of non-life and life insurance companies in 2020

Due to the COVID-19 pandemic, there has been unusually high uncertainty in 2020 surrounding economic developments and related expectations. Non-life and life insurance companies shall continue thorough assessment of the operating environment and risks involved in their own operations as well as a frequent and active dialogue with the FIN-FSA in 2021. At the same time, the companies are expected to take precautionary measures by developing risk management to protect insured interests and by tending to strong solvency while ensuring adequate resourcing of internal control functions and access to information.

The pandemic causes shocks in the real economy and thereby the financial markets, which have the potential to bring about changes to insurance companies’ earnings capacity and logic. These developments are expected to be taken into account when the companies are setting short and long term assumptions on future business performance and assessing their strategy. Particular attention must also be paid on the selection of assumptions applied in ORSA (own risk and solvency assessment) and in the calculation of technical provisions, and on the up-to-date maintenance of the assessments.

Next year, EIOPA will publish a statement addressed at supervisory authorities, setting expectations on the treatment of risks related to climate change in ORSA. In the initial stage, the supervisory authority’s expectations are primarily related to the identification and qualitative assessment of climate risks.

The real estate market in Finland is heavily polarised, which affects, in addition to sale times, also the reliability of different valuation methods. The FIN-FSA is currently preparing a thematic review of real estate valuations concerning all insurance institutions.

In addition, the FIN-FSA will review the quality and extent of regular supervisory reports (RSR) next year. In the same context, the FIN-FSA will assess the frequency of submission of these reports on a company-specific basis.

In the supervision of the conduct of business, the supervisor has paid attention to product governance, group insurance arrangements, ensuring of the professional competence of insurance agents as well as the handling processes and lead times of compensations in statutory insurance classes. Another area of interest is the assessment of outsourcing processes, particularly in areas where public administration duties are conducted.

For further information, please contact

  • Teija Korpiaho, Head of Division, tel. +358 91835528 or teija.korpiaho(at)
  • Timo Holopainen, Supervision Manager, tel. +358 91835661 or timo.holopainen(at)


FIN-FSA letter of  18 December 2020 to non-life and life insurance companies (pdf)