Finansinspektionens (FI) supervision process adopts a forward-looking approach and applies a risk-based methodology.
The supervision focuses on ensuring that policyholders and other beneficiaries are highly likely to receive the compensation to which they are contractually entitled. Central for supervision is also the undertakings duty of care, which means that insurance undertakings must start with the consumers’ needs and conditions when developing and selling different types of products and services, so these are appropriate for individual consumers.
A central tenet in FI’s supervision is to ensure that undertakings and groups have control over their operations (for example applicable risks and regulatory requirements) and that they comply with their internal policy documents and decision-making processes (which in turn should maintain a satisfactory level of quality). This requires flexible supervision that focuses on analysing and ensuring the effective management of risks and the fulfilment of requirements on solvency capital.
A supervisory plan may cover a single undertaking, a single group or a larger number of undertakings or groups. The supervisory plans are updated regularly based on risks and priorities, and FI takes necessary measures depending on what the supervisory activities uncover. Supervisory activities and supervisory measures may take place at any time during the year, if and when FI considers there to be a need.
FI implemented the supervisory review process in 2015 as part of the preparations for the EU Directive, Solvency II, and assesses the process regularly.