Sweden’s financial supervisory authority, Finansinspektionen, is urging the country’s insurance and pension firms to check their solvency levels on an ongoing basis amid the war between Russia and Ukraine, despite low exposure to the region.
The watchdog said that a recent survey it conducted, because of “the troubled economic situation created by Russia’s invasion of Ukraine,” showed insurance firms – including occupational pension providers – had entered the crisis with very low exposure to both countries, on both the asset and liability sides.
The FSA said in a statement: “We note, however, that only a quarter of the 136 companies included in the survey have calculated a solvency ratio since the war began on 24 February.”
It said the purpose of its poll had been to get an overall picture of the companies’ solvency at the beginning of the crisis, and identify operational vulnerabilities.
“FI’s view is that companies should follow their solvency ratio on an ongoing basis and should review it when significant events occur, taking into account the company’s financial strength,” the agency said.
Finansinspektionen said the amount of premiums in the affected region was “negligible” for the industry as a whole. But it warned that many insurance companies saw an increased risk of cyber attacks and disruptions to financial and public infrastructure, such as power outages and interruptions in internet traffic.
The authority said it would continue to monitor insurance and occupational pension companies amid the current market situation, and said it was having “ongoing contact” with certain selected firms.