Market Trends of Finland Life And Non-Life Insurance Industry
Online Channel will witness New growth avenue in Coming Future
The online channel segment is growing at the fastest pace in the life insurance market as well as in the non-life insurance market in Finland in the forecasted period. This is due to the ease of online insurance policy purchase and guidance on discounts, offers, and plans by the company, which increases the confidence of consumers to purchase online insurance. The online segment is expected to witness rapid growth during the forecast period owing to the high penetration of the Internet and smartphones, along with technological advancements, changes in purchasing behavior due to digitalization, availability of a wide range of insurance products, and wide range of discounts and offers on insurance sites.
Growth in Non-Life Segment due in Increase in Premium
Insurance premiums written by non-life insurers rose by more than 3%, while companies paid out more than USD 3.8 billion in non-life claims, 9% higher than the same period in the previous year. The profitability of insurance operations was exceptional last year. According to Finland’s Financial source reports, the solvency of the non-life insurance sector reached its highest level during the Solvency II period, although the returns on investments were negative. The increase in solvency was driven by a sharp rise in the overall interest rate level, which reduced the value of insurance liabilities and increased insurers’ solvency. Thus, the decrease in interest rates leads to the growth of non-life insurance, which leads to a market rise.
