News release 9 January 2025 – 1/2025

Statistical survey of workers’ compensation insurance 2019–2023: Total result for 2023 best in five-year review period, despite decline in underwriting result

In 2023, premiums written on workers’ compensation insurance totalled EUR 554.5 million, compared with EUR 568.7 million in 2022. Premiums written declined by 2.5% from the previous year. In 2023, nine insurance companies provided workers’ compensation insurance. Of these, seven were Finnish insurance companies and two were branches of foreign EEA insurance companies. The market remained concentrated, as the four largest companies’ share of premiums written was approximately 95%.

The 2023, the result recorded for workers’ compensation insurance was the best in the five-year review period. The result of EUR 363 million was approximately 66% in proportion to net premiums earned, whereas the five-year average ratio is approximately 41%. The strong result was evenly split between the positive underwriting result on investment activities of EUR 197 million and the positive underwriting result of EUR 166 million.

The underwriting result declined significantly from the record EUR 497 million result in 2022. Of the underwriting result in 2024, EUR 110 million was explained by changes made to the calculation principles of technical provisions and particularly by increases in discounting rates, whereas in 2022 changes made to the calculation principles improved the underwriting result by up to EUR 420 million. The underwriting result, adjusted for changes made to the calculation principles, was EUR 56 million in 2023, compared with EUR 76 million in 2022. The weakening of the adjusted result is explained by an increase in operating and claims management expenses as well as an increase in paid claims and a decrease in premiums earned.  

In 2023, investment activities generated a profit of EUR 197 million, which was a significant improvement on the EUR 191 million loss in 2022. The total result for 2023, adjusted for the changes made to the calculation principles, was a profit of EUR 253 million. Over the last five years, the average adjusted result has been a profit of EUR 184 million. Business has therefore been profitable for the insurance class, although there have been large differences between companies and years in terms of the components of the result.

In the future, the survey will be conducted at least every three years

The Financial Supervisory Authority’s statistical survey of workers’ compensation insurance is based on data compiled from insurance companies. The survey presents tables, charts and calculations relating to premiums, market shares, key ratios and results. In addition to the aggregate data, financial performance data are published on a company-specific basis in a separate file.

From 1 January 2025, the Workers’ Compensation Act will be amended so that, in the future, the Financial Supervisory Authority will be required to publish a statistical survey of workers’ compensation insurance at least every three years.

For further information, please contact:

Iiro Marttila, Actuary, tel. +358 9 183 5482 or iiro.marttila(at)fiva.fi.

Appendices (in Finnish)