Investing insurance contributions

Insurance companies must invest the insurance contributions that they collect from the insured in a secure and productive manner.

However, when aiming for maximum productivity with their investments, insurance companies must ensure that their solvency is not at risk. Insurance companies must have adequate solvency capital, which acts as a buffer during periods of weak economic growth.

The Financial Supervisory Authority ensures that the solvency of Finnish insurance companies is at the levels required under law.

In the law, the types of investment are grouped in accordance with risks and the law also lays down how much of each type of investment can belong to each group.

A new EU-wide risk-based system for supervising solvency (Solvency II) is under preparation.