People in Finland are increasingly taking financial protection into their own hands as public safety nets come under pressure, according to new figures from ICMIF member LocalTapiola (known in Finland as LähiTapiola).
Publishing its 2025 annual results, the mutual group reported that first premiums written rose by 6.2% in non-life insurance and by 4.2% in term life insurance, as households responded to economic uncertainty, high unemployment in Finland and wider geopolitical tensions by strengthening their financial resilience. Demand for investment services also increased, with asset management fee income up 4.7%.
“Smart Finns prepared themselves by insuring, saving and investing. Our premium income from non-life insurance increased by 6.2 per cent, and demand for investment services also increased. As a lifelong security company, we naturally respond to the need of Finns to be prepared, but at the same time we are concerned about where this need comes from. An atmosphere of lack of prospects has taken root in our society, where the future is seen as a risk rather than an opportunity,” said Sari Heinonen (pictured), President and CEO of LocalTapiola Group.
Employers expand health cover
LocalTapiola has witnessed this trend extend to businesses, which are increasingly strengthening protection for their employees. According to financial sector statistics, the number of voluntary health insurance policies taken out by employers in Finland has increased by more than 40% since 2016.
The organisation said it has become the market leader in workers’ compensation insurance and is seeing growing demand for broader health cover and remuneration services as companies seek to retain skilled staff in a challenging labour market.
“Risk management is emphasised, and employees are insured more quickly, for example with more extensive health insurance,” Heinonen noted.
Climate risks remain prominent
In 2025, the group says it paid out EUR 1,015 million in non-life insurance claims, down 2% on the previous year after several years of growth, while life insurance compensation totalled EUR 393 million.
Storm Hannes, which struck western Finland, is expected to rank among the three most costly storms of the millennium for the company in terms of compensation.
“Storm Hannes, which ravaged western Finland, reminded us that even familiar risks intensify as the climate changes. The final price of Hannes will not be known until later, but in terms of the amount of compensation, the storm seems to rise to the top three of the millennium,” Heinonen said.
Investing in growth
Alongside responding to rising demand for protection, LocalTapiola is positioning itself as a supporter of long-term economic growth in Finland. The group announced it will invest an additional EUR 200 million in Finnish growth companies and has donated a further EUR 5.4 million to six universities to support multidisciplinary projects promoting economic growth.
The donations — EUR 900,000 each — were awarded to the Universities of Helsinki, Eastern Finland, Oulu, Tampere, Turku and Vaasa.
“I strongly believe that Finland needs a new ‘growth triangle’, the spearheads of which are funding, expertise and attitude. We need funding for all stages of growth and, in particular, for scaling the operations of growth companies, which means that domestic private capital is at a premium. Excellence is created in higher education institutions, and gaps in the university funding system must not close the doors to growth. And in the end, attitude is crucial: owners must have the courage to spur companies on to growth, and the atmosphere must foster bold risk-taking,” Heinonen said.
While 2025 was described as a difficult year for the Finnish economy, LocalTapiola’s results suggest that in uncertain times, both households and employers are turning increasingly to mutual insurers to help manage risk and secure their futures.
