Supervision release 10 December 2019 – 66/2019

Financial Supervisory Authority’s findings in supervision of life and non-life insurance companies during 2019

The Financial Supervisory Authority (FIN-FSA) wishes to draw the attention of companies to certain findings highlighted in supervision during 2019 and at the same time to express the supervisor's expectations in respect of them in 2020.

In general, Finnish insurance companies are well managed, and solvency is on a good level. Increased uncertainty, however, requires companies to prepare even better for risks by improving their management and securing their solvency.

The FIN-FSA draws companies’ attention to the own risk and solvency assessment (ORSA), the role of the Board of Directors in its preparation and the stress tests used therein. Although European-level stress tests will not be carried out in 2020, the FIN-FSA will request from companies some calculations on the impact of low interest rates.

Companies should be adequately prepared for future uncertainties and ensure capital adequacy also in the longer term and in less likely circumstances. In the FIN-FSA’s view, this requires insurance companies to exercise restraint in their profit distribution.

Changes in the operating environment will have a profound impact on the activities of both non-life and life insurance companies. The FIN-FSA expects companies to critically assess their accounting assumptions that are vulnerable to change, and to modify them quickly, if necessary, when the operating environment and, for example, customer behaviour change significantly.

In addition, the FIN-FSA draws attention to management of conflicts of interest, particularly in companies operating in groups.

For further information, please contact

Teija Korpiaho, Head of Division, tel. +358 46 8769 600 or teija.korpiaho(at)


FIN-FSA's letter to insurance companies, dated 10 December 2019