Swedish regulator issues insurer reserves warning
SWEDEN – The Swedish financial supervisory authority - Finansinspektionen(FI) has issued a warning about unsatisfactory reserves in six Swedish life insurance companies, adding that it will sharpen its supervision of these companies due to the recent falls in the stock markets.
The firms listed by FI are Folksam Liv, Länsförsäkringar Liv, SalusAnsvar, KPA, SparLiv and SEB Trygg-Hansa Liv.
Helena Östman, chief information officer at the FI, says the total amount of assets lost by the insurers since April this year has hit SEK35bn (e3.6bn).
FI says it is demanding active measures from the companies so that the customers will have prompt information regarding the consequences of depleted reserves on their bonuses.
The companies cited have already notified the FI that they will be lowering their bonus rates to customers. They
The regulator is also requesting that the companies now report to it on a more regular basis and has warned insurers that that need to be on their toes in order to take further action when it comes to adjustments to bonuses or asset allocation.