News release 28 July 2014 – 11/2014

Survey of compliance with the principle of equity by life insurance companies in 2012: Information disclosed by companies on the Internet is generally of good quality

The information published on the websites of life insurance companies on their principles of equity is generally of good quality, based on a survey conducted for 2012.

However, the information provided on the principles of equity had deteriorated for some companies in connection with website updates. The Financial Supervisory Authority (FIN-FSA) has addressed the situation, and website information has been made more transparent in this respect. Overall, the information provided on life insurance companies' principles of equity has improved as a consequence of FIN-FSA's analysis. The previous surveys are for the years 2008–2011.

According to the survey, life insurance companies have complied well with the principle of equity, and the companies complied with the principles of distribution of bonuses in 2012. The principle of continuity was also complied with by these companies during the review period.

The principle of equity means how the company distributes surpluses between customers and between customers and company shareholders. The principle of equity also requires compliance with the principle of continuity, in other words, the company must seek to maintain the level of bonuses for their customers. The same requirement does not apply to dividends or interest on the guarantee capital. The definition of objectives for the principle of equity is based on provisions of the Insurance Companies Act.

FIN-FSA annually collects insurance-related statistical information from life insurance companies, and this information is used in connection with surveys on compliance with the principle of equity. The survey compares the objectives for distribution of bonuses and reports on achievement of these objectives, as published on the companies' websites.

For further information, please contact

  • Jari Niittuinperä, Chief Actuary, tel. +358 10 831 5517