The tsunami that hit Southeast Asia in December 2004 took its toll on the whole world. As a side-effect of the natural disaster, it became apparent how badly many Finns had taken care of their life assurance coverage. As a consequence, risk life assurance received more attention in the media than ever before. But Finnish people were driven to action; the industry’s aggregate sales of risk life assurance in 2005 rose by 25% from the previous year.
A new market situation for life assurance companies
The competitive positions of risk life assurance companies changed in 2005. Suomi Mutual discontinued insurance policy sales at the beginning of the year and the OKO Bank purchased Pohjola at the end of the year. This competitive situation provides Tapiola with opportunities, particularly in pure risk insurance and corporate insurance.
Throughout 2006, life assurance companies may be faced with a highly significant risk, since the threat of the emergence and spread of a pandemic has grown considerably. If the pandemic happens, it may cause significant losses of investment income and significant increase in claims incurred for life assurance companies.
Employee care coverage: a new insurance supplementing occupational health care
In December 2005, Tapiola Corporate Life assurance launched a new Employee care coverage package, targeted at customers in the Helsinki metropolitan area. The insurance package which was developed via a large-scale cooperation with Diacor Terveyspalvelut Oy supplements occupational health care.
Tapiola’s new group life assurance policies, insurance for severe illness, and payment refund insurance were offered to the public in May. Tapiola’s insurance for severe illness is unique to the markets, since illnesses are not restricted by a list of diagnoses, but rather, any illness resulting in major costs to the customer is considered a severe illness.
Insurance policies directed increasingly at supplementing social security
Customers' need for voluntary preparation for retirement and other services improving personal well-being is growing fast. The sales of individual pension insurance policies took off sluggishly in spring but recovered to achieve a good level in autumn.
Aging takes place in three stages: the active phase, the phase of coping alone with support, and the institutionalised phase. The role of the insurance company could be particularly highlighted during the middle phase. The well-being of aged individuals at home could be facilitated significantly with an overall solution that enables them to receive support services and information on the opportunities available.
Tapiola Life’s new group pension insurance policies increasingly focus the company on the goal of supplementing social security. This is another increasingly important area of product development.
Corporate customers to promote staff motivation and coping at work
Tapiola Corporate Life customers have shown a demand for services that promote their personnel’s motivation and working behaviour. Tapiola Corporate Life is in the unique position to offer its customers the services of a life, pension, and non-life insurance company as a seamless package through a single contact person. The development and commercialisation of this service bundle will be one of the main development projects in the near future.
Juha-Pekka Halmeenmäki
Managing Director
Tapiola Mutual Life Assurance Company