Last week, Folksam Liv (Life) announced it would be sending out a refund notice to just over 900,000 customers who will each receive a share of SEK 854 million (USD 99 million). The refund is being paid to customers who, on 31 December 2020, had certain voluntary group life or group health insurance.
As a mutual, all profits within Folksam go back to its customer members, including in the form of bonuses. How much the different policyholders receive in rebates varies depending on the premium paid and actuarial factors, but above all the development of Folksam Life’s assets under management affects the size of the rebate.
“Folksam is a customer-owned company and if we get a surplus, it goes back to our customers in the form of reduced premiums, improvements to our services and products or as a refund in the form of a cash compensation. We can look back on a year where our asset management went very well, which is a strong contributing factor in why we can now pay back just over SEK 850 million to over 900,000 of our customers,” said Anna-Karin Laurell, Head of the Life business area at Folksam.
For those of Folksam Liv’s policyholders who receive a refund and are direct debit customers, the payments will start on 16 November and others will receive their refund from 15 December 2021.