Supervision release 30 December 2021 – 59/2021

FIN-FSA’s findings from supervision of life and non-life insurance companies in 2021

The Financial Supervisory Authority (FIN-FSA) wishes to draw the companies’ attention to certain issues that have arisen in supervision during 2021 and to communicate the supervisor’s expectations for 2022.

Despite the prevailing COVID-19 situation, 2021 was a year of economic recovery. Most companies in the sector strengthened their results, premiums written developed favourably, returns on investments in risky asset classes were robust and claims expenditure was moderate. SCR ratios are on a good level and, as a result of the combined effect of all of the above factors, the companies’ solvency has improved.

In line with the approach adopted by the European Supervisory Authorities, the FIN-FSA decided not to continue to restrict profit distributions, but still urges insurance companies to take into account the risks related to the prolongation of the COVID-19 pandemic as well as the risks associated with its operations in the planning of profit distributions. Insurance companies are required to carefully assess capital needs and the sustainability of business models in the planning of profit distributions and payment of variable bonuses.

A sound, high-quality system of governance and well-functioning internal control and risk management systems, together with appropriate procedures, are naturally key to sustainable and effective operations. The FIN-FSA wishes to point out that implementation of administrative regulations and sound risk management practices into business processes is not only essential but also important from the business point of view to ensure strong performance in the long term.

The enclosed letter highlights some of the key findings in the course of ongoing supervision in 2021, which we urge supervised entities to acknowledge to ensure sustainable and sound operations.

We would also like to take this opportunity to thank supervised entities for their excellent cooperation in 2021 and wish everyone a Merry Christmas and a prosperous New Year 2022!

For further information, please contact

Niina Bergring, Head of Division, tel. +358 9 183 5054, or niina.bergring(at)

Marko Aarnio, Head of Division, tel. +358 9 183 5562, or marko.aarnio(at)

See also

FIN-FSA’s letter of 21 December 2021 (pdf)

The corresponding Finnish-language supervision release was published on 21 December 2021.