Read about Aktia's year 2023
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Life insurance business – a firmly integrated part of the strategy
We are a reliable life insurer whose services include personal risk insurance products for private and corporate customers, such as life insurances, disability insurances and cover for critical illness. In addition, our range of products includes solutions for investment and remuneration, which combine the efficiency of insurance savings and Aktia’s award winning wealth management.
A positive year despite market fluctuations
2023 was marked by an increase in general uncertainty and market volatility. Despite this, new sales of risk life insurances continued to grow for the fifth year in a row, in particular thanks to the successful sales work of our distribution partners. Positive net entries for investment-linked insurances continued, and the Avara product family launched at the end of 2022 has been received well in Private Banking. Aktia Avara is a family of competitive investment and insurance products that offers a flexible and tax-efficient way of investing long-term. With the open architecture insurance solution, we also expect strong growth in investment-linked insurances in the coming years.
The investment year 2023 was turbulent, but positive as a whole, thanks to the well-developed share yield and reduced credit risk premiums towards the end of the year. Interest rates showed exceptionally large movements: while the central banks’ rate hikes increased short-term money market interest rates, long-term interest rates decreased in anticipation of future rate cuts, increasing the valuation of technical provisions consisting of insurance agreements as well as interest rate derivatives and long-term fixed-income investments covering them. The most challenging asset type was real estate investments; the higher interest rate level was passed on to market return requirements for real estate and lowered their valuations.
We are on a digital transformation journey
In accordance with our strategy, we continued our efforts to improve the customer and distributor experience and employee satisfaction based on the feedback received in NPS surveys. We deepened cooperation with our distributors during the year. We also continued to develop our processes, increase the automation rate and, in particular, prepare the renewal of sales tools. During the first quarter, we will introduce new applications that will enable even more efficient and customer-friendly sales of personal insurances. In the summer, we concluded an agreement on the renewal of the basic system with Sapiens, and we have prepared to launch the implementation phase of the project during the second quarter of 2024.