Sweden’s Handelsbanken
is to establish a life insurance company in Finland in response to
the growing need to find new ways to finance health services for
the country’s aging population.
Antti Heinonen, country
manager for Handelsbanken Life in Finland, who will be the CEO of
the new company, told Life Insurance International that he
expects its Finnish life insurance services to be operational “in a
matter of weeks”.
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Heinonen added that
Handelsbanken has already received regulatory approval for the
business in Finland.
Handelsbanken will use
its existing branch network to distribute life insurance products
in Finland.
Asked what is motivating
Handelsbanken to launch a life insurance company in Finland,
Heinonen explained that the Finnish market is currently dominated
by three major players.
Aging
population
However, given that only
approximately 5% of the population in Finland has voluntary pension
savings, he said Finland’s aging population is “putting pressure”
on the mandatory pension system, thereby creating growth potential
for life insurance.
According to Heinonen,
the new life insurance operation will differentiate itself from its
competitors by capitalising on being “part of the strongest bank in
Europe”. He added that there is also high customer satisfaction
with Handelsbanken.
Commenting on the
product strategy for the new operation, Heinonen, said: “We will
focus on life insurance products linked to savings, and
pensions.”
