A stable, well-functioning financial market for allA stable, well-functioning financial market for allCovering of technical provisions in ten insurance companies
Finansinspektionen has investigated the covering of technical provisions at ten insurance companies. All of the companies had assets that covered the companies' liabilities for technical provisions for the policyholders, in other words full coverage of technical provisions. The assets were also invested in accordance with legal requirements.
The companies' routines for maintaining a register for covering of technical provisions were primarily satisfactory, but we found that their instructions and descriptions of routines in some cases were inadequate. We concluded, however, that the identified shortcomings would not affect the security of the companies' liabilities.
FI will take the following measures
During the investigation, we noted some departures from the regulations or recom-mendations. After the investigation, the companies have taken measures to meet our requirements. Because covering of technical provisions is of great importance for the policyholders and others entitled to payment, in future we also intend to focus on how this is handled by the insurance companies and occupational pension funds.
The rules and recommendations contained in our regulations, general guidelines and in the guidance document "God standard vid hantering av skuldtäckning" (only available in Swedish) had not fully reached the staff working with these tasks at the companies. It is thereby FI's task to increase the companies' familiarity with the regulations for covering of technical provisions.
A revision of the regulations and general guidelines is underway due to legislative changes. The guidance document will also be included in this revision of which the purpose is to make the regulations and general guidelines more explicit.
