Insurance and pensions

Analysis and monitoring

Finanstilsynet receives extensive periodic reports from insurers, pension funds and insurance intermediaries. The reporting provides an important basis for prioritising risk areas and selecting individual undertakings for supervision.

The reporting also forms the basis for a number of analyses prepared by Finanstilsynet for individual industries. The following reports from 2024 are available on Finanstilsynet’s website.

• quarterly reports showing the profitability and balance sheet composition of life insurers and non-life insurers
• quarterly reports on the solvency situation of financial institutions etc., including both insurers and pension funds (pension funds are included every six months)
• semi-annual reports showing the profitability and balance sheet composition of pension funds
• semi-annual reports on pension funds’ solvency situation
• annual supplementary reports on insurers’ solvency situation

In addition to the regular reporting, Finanstilsynet may impose extraordinary reporting requirements on vulnerable undertakings after a concrete assessment of the need for more frequent or more detailed information. In 2024, two insurers were subject to such extraordinary reporting requirements.

Finanstilsynet also conducted ad hoc analyses of risks in undertakings and markets when considered relevant.

Advanced technology – artificial intelligence

In the summer of 2024, Finanstilsynet surveyed the use of advanced technology, for example based on artificial intelligence, among 31 insurers. The undertakings were asked to account for their use of such technology, competence at various levels, the system of management and control, the extent of outsourcing, how they address ethical issues as well as future plans for the use of advanced technology. The survey showed that the undertakings use such technology to very different degrees. A summary of the survey was published on Finanstilsynet’s website in September 2024. Finanstilsynet expects the undertakings to ensure the safe use of advanced technology.

Supervision

Finanstilsynet's supervision of insurance and pension undertakings is risk-based. The priorities are based on reporting, analysis of risks and vulnerabilities as well as signals and other information received by Finanstilsynet about undertakings and markets. At an inspection, Finanstilsynet reviews the undertaking’s management and control system, including strategies and guidelines, organisation, monitoring and reporting, along with the undertaking’s risk level and capitalisation.

Finanstilsynet conducted inspections at one life insurer and two pension funds in 2024. Inspections were also carried out at six non-life insurers. At one of the non-life insurers, the inspection addressed the undertaking’s internal model for calculating solvency capital requirements.

Finanstilsynet also conducted two ICT inspections at insurers in 2024, focusing on ICT risk and security as well as emergency preparedness.

Premium rates for disability insurance in municipal occupational pension schemes

In autumn 2023, Finanstilsynet prepared an analysis of premium rates for disability insurance in municipal occupational pension schemes, partly because some pension institutions had registered apparently low rates. Based on the analysis, Finanstilsynet asked some pension institutions to explain how they ensure adequate premium rates. Some pension institutions have subsequently chosen to adjust their rates for disability insurance and reinstatement, and most of these have increased their rates. A summary of the analysis, as well as Finanstilsynet’s follow-up and expectations for the undertakings, was published on its website in December 2024.

Climate risk

Insurers regularly report their own risk and solvency assessment (ORSA) to Finanstilsynet. Based on the latest ORSA reports, Finanstilsynet carried out analyses and assessments of climate risk at 31 insurers. The survey included the extent to which climate issues have been included in scenario analyses and which measures are considered relevant in such scenarios. Finanstilsynet is monitoring developments and addresses issues related to the handling of climate risk in ORSA as part of its ongoing supervision. The survey was published on Finanstilsynet's website in October 2024 (in Norwegian only).

Insurance intermediaries’ client funds

In autumn 2024, Finanstilsynet carried out an off-site inspection of eight insurance intermediaries, focusing on the undertakings’ handling of client funds, including how interest on the client fund accounts is handled.

International supervisory collaboration

Finanstilsynet cooperates with other national financial supervisory authorities on the supervision of international insurance groups. Finanstilsynet heads such supervisory colleges for Storebrand and Gjensidige and also participates in four other supervisory colleges. There is also ongoing cooperation with other countries' supervisory authorities concerning foreign branches and operations outside the EEA.

Licensing and other administrative matters

In 2024, Finanstilsynet granted one licence to conduct insurance activities and one permission to merge two insurers.

Finanstilsynet processed 70 notifications of ICT outsourcing in 2024. 

Emergency preparedness and crisis management

Finanstilsynet is prepared to handle crises in both individual undertakings and the markets. The purpose of supervision is to prevent such crises. 

In 2024, Finanstilsynet closely monitored certain insurers with weak solvency and inadequate management and control of their operations.

Finanstilsynet acts as secretariat for the Non-Life Insurance Guarantee Scheme. In 2023, the Storting (Norwegian parliament) decided to make advance compensation payments to claimants covered by insurance contracts entered into on a cross-border basis with the Danish insurer Alpha Insurance A/S. The Guarantee Scheme administers these payments. In 2024, the scheme received approximately 120 cases from Alpha’s bankruptcy administrators and has thus far paid more than NOK 70 million in compensation to the claimants. This process will continue in 2025, but far fewer cases are expected in the future.

Regulatory development in the pensions area

In spring 2024, Finanstilsynet participated in a working group established by the Ministry of Finance to assess the regulatory framework for guaranteed pension products. In addition to the Ministry of Finance and Finanstilsynet, the Ministry of Labour and Inclusion, NHO - Confederation of Norwegian Enterprise and the Norwegian Confederation of Trade Unions were represented in the group. The group submitted its report to the Ministry of Finance in September 2024, and the report was circulated for comment on the same day.

Finanstilsynet participates in a working group examining necessary changes to the regulations for private occupational pension schemes based on the decision made by the Storting (Norwegian parliament) when assessing Report 6 (2023-2024) to the Storting: An improved pension system with a stronger social profile. The working group will submit its report by end-February 2025.