The insurance companies’ routines for assets covering technical provisions

Statutory provisions require that the companies maintain separate registers of assets covering technical provisions for occupational retirement pensions and other life insurance, respectively, which some companies lack. A few companies have deficient routines for documentation and review. We assess, however, that the policyholders' interests have not been jeopardised.

It is important that the companies conduct frequent controls to ensure that the assets covering technical provisions fulfil commitments to the customers. It is also important that the companies have a margin between the assets covering technical provisions in the register and commitments.

In the future, we expect that the auditors in their review will also check whether the register of assets covering technical provisions is maintained in an appropriate manner.

FI will take the following measures

We are following up that the identified discrepancies are rectified. We are also continuing with the reviews of the companies' regulations and procedures for assets covering technical provisions as well as the checks of the actual register of assets covering technical provisions.