Finland Insurance Information

CIA link to demographic/economic data on Finland

General Finland Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation;
  2. Third Party Automobile Liability;
  3. Hunters liability;
  4. Workers’ Pension;
  5. Nuclear liability;
  6. Shipowner’s liability for oil spills / pollution;
  7. Employer’s Liability
• Non-Admitted Insurance:
  Not prohibited except for compulsory coverages.
• Policy Wordings & Rates / Tariffs Controlled:
  All coverages are free of tariff except compulsory lines.
• Policy Language:
  Finnish or Swedish.
• Types of Insurance Restricted to Government Institutions:
  Health and National Pension.
• Policy Currency:
  euro (EUR) note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries U.S. $ insurance available.
• Currency Restrictions / Exchange Controls:
  tbd.
• Policy Period:
  Variable – short term, annual or for more than one year, subject to annual premium payments.
• Cancellation Provisions:
  30 day written notice for either party (except for short term policies).
• Premium Tax, etc. paid by Insured:
  22% plus a 3% “fire protection” fee on non-life premiums except for personal insurance, credit, medical malpractice or Marinecargo business. There are also levies of 1.5% on compulsory motor and 2.6% on compulsory WC. If insurance is placed overseas, the insured is responsible for remitting the tax due directly to the tax authorities.
• Insurance Companies:
  
• Brokers:
  Brokers are becoming more active but this is still very much a direct market.
• Brokerage Commissions:
  No standard commission scales due to newness of brokerage activity.
• Broker of Record Letters:
  Not required but a good idea.
• Reinsurance:
  No restrictions and no taxes. Foreign reinsurers can operate freely in the Finnish market.
• Local Natural Hazards:
  Flood (coastal and rivers) and Windstorms do occur but there is no recurrent pattern.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, storm / tempest, burst water pipe, malicious damage, windstorm/ hurricane. Earthquake, flood, vehicle impact and weight of snow / avalanche are available in the market for an additional premium charge.
• All Risk:
  Available.
• Coinsurance:
  nil.
• Blanket Insurance:
  Available.
• Business Interruption:
  Available. UK Loss of Profits most common.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available but check for restrictions.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local form which can include Business Interruption and Machinery Breakdown. An inspection by Government (and other approved) inspectors is required.

General / Public Liability

• Available Wordings:
  General / Public Liability including Product Liability.
• Comments:
  Product Recall coverage is available. Gradual pollution is insurable after a survey. Occurrence forms are available but most policies are written on a Claims Made form.

Automobile / Motor

• Compulsory Limits:
  Personal Injury: Unlimited; Property Damage: FIM20 million
• Comments:
  Coverage applies to Insured and any individual driving with the Insured’s permission. Passengers are deemed to be Third Parties. Each vehicle is required to have an individual policy. No claims bonuses are available. Own Damage, Fire and Theft coverage is available.

Workers’ Compensation

• Comments:
  A locally licensed Insurer can only provide this compulsory coverage. Benefits extend to all employees including those temporarily abroad. Medical Expenses and Occupational Disease benefits are also included. Employees have the option to sue.

Marine

• Available Wordings:
  Local, London Underwriters’ and U.S.

Crime

• Available Coverages:
  Fidelity, theft, burglary and an assortment of surety bonds.