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Insurance premiums paid

Publicerad: 2022-09-21 Nästa publiceringsdatum: 2023-09-21

Insurance premiums are paid in advance to insurance and occupational
pension companies to provide a certain level of insurance cover for a specific
period of time. This means that there is usually a lag between premium
payments and compensation pay-outs in cases of damages.

In the case of pension and life insurance, the time between payment of premiums and pay-outs in the form of a pension or other savings is typically many years. In addition to pay-outs, premiums must cover a variety of operating costs, such as premises costs and employee salaries at the insurance company.

Non-life insurance premiums totalled just over SEK 100 billion in 2021, of which companies paid just over SEK 21 billion and households paid nearly SEK 79 billion (see figure 2). The premiums paid for pension and
life insurance totalled nearly SEK 410 billion. Premium payments for pension and life insurance increased by 34 per cent compared to 2020, while premium income for non-life insurance increased by 5 per cent.

In 2021, an average of approximately SEK 7,500 per person was paid in premiums for non-life policies and approximately SEK 39,200 per person in premiums for pension and life insurance in Sweden. It is common for
an individual to have multiple types of insurance, such as home insurance, motor vehicle insurance and occupational pension. However, the individual is not always the one who pays the premiums. Employers pay approximately 52 per cent of the premiums for pension and life insurance in the form of occupational pensions. Employers also pay some of the premiums for nonlife insurance, such as accident and healthcare insurance.