Summary of the 2017 annual report

In 2017, the reform of the Motor Liability Insurance Act had an essential impact on motor liability insurance operations.

According to preliminary data, insurance premium income (adjusted for credit losses from insurance premium receivables and excluding pay-as-you-go system premiums) totalled EUR 738 (829) million. Insurance premium income decreased by 11 % year-on-year. Based on motor liability insurance, 124,293 (127,678) traffic accidents were reported to insurance companies, a reduction of 2.7 % compared to the previous year.

Legal and insurance operations

The number of frontier motor liability insurance policies sold totalled 850 (763). The increase was due to the growth in border traffic volumes following the increase in shopping tourism. The number of LVK-issued temporary motor liability insurance policies sold totalled 56,500 (55,357). All in all, 103,330 (97,105) transfer permits were issued.

Search by registration number was enabled in the claims representative register.

Preparations were made for the implementation of the Insurance Distribution Directive (IDD) and related national legislation. Form templates required by the regulations were prepared for mandatory motor liability and voluntary comprehensive motor vehicle insurance policies.

A project was initiated to enable message-based transmission of police reports from the police to LVK and from LVK to insurance companies.

Training on the new Motor Liability Insurance Act was provided for stakeholders, and contributions were made in the preparation of technical regulation amendments.

A project was initiated to review personal data files, documents, contracts, etc. ensuring that they meet the requirements of the EU's General Data Protection Regulation. A statement was given on national data protection regulation and the related legislative change.

Statements were also given on the changes proposed to the Act on Transport Services, traffic automation and digital services and the reform of the Road Traffic Act (

At the EU level, the REFIT review of the Motor Insurance Directive (MID) was followed. The Centre participated in the joint statements of Insurance Europe.

Debt collection

The collection process for uninsured vehicles that was changed following the entry into force of the new Motor Liability Insurance Act was deployed in collaboration with the State Treasury. A revised debt collection system was taken into production. The State Treasury processed and returned 36,950 decisions made in response to LVK's application. 43,213 (43,531) reports on uninsured vehicles were received from the Finnish Traffic Safety Agency Trafi.

The number of debt restructurings increased on the previous year by approx. 15%. No changes took place in the numbers of compulsory auctions, recoveries, legal costs and enforcements. The number of rejoinders filed with the Administrative Court decreased to 43 (74) cases. The Supreme Administrative Court processed 1 (5) case.


A total of 6,996 (5,566) new damage and report cases were reported to LVK. Cases where damage was caused by Finnish vehicles numbered 1,407 (1,185), of which 376 (400) were cases of damage caused by unknown vehicles, 740 (717) caused by uninsured vehicles, and 90 (68) damage under temporary motor liability insurance.

Following the entry into force of the new Motor Liability Insurance Act, 201 cases of damage caused by vehicles exempted from the obligation to insure were compensated as a new compensation type. There were 827 (588) cases of damage caused by foreign vehicles reported and 4,331 (3,410) cases of reindeer damage.

Relating to the system of full cost liability in medical care, public healthcare providers sent 226 (202) cases involving patients hurt in traffic accidents for whom the insurance company liable to compensate could not be determined at the time of treatment to LVK for investigation.

As the claims representative of foreign insurance companies, LVK handled 155 (150) cases. As the compensation body under the Motor Insurance Directive, LVK handled 50 (31) cases where the insurance company failed to provide a reasoned response by the set date or failed to name a claims representative.

Actuarial and statistics operations

The Motor Liability Insurance risk study as well as company-specific studies, breakdowns of accidents by main vehicle groups, the Home Municipality and Brand study and a risk study concerning motorcycles were carried out.

The calculations required for the pay-as-you-go system were prepared. The fees corresponding to the insurance premium for 2018 on which the penalty premium charged to owners of uninsured motor vehicles are based were determined.

The calculations required for investigating the new damages reported to the motor insurance major damage pools were prepared. Calculations related to the re-distribution of old damages were prepared. The compensation and provision details pertaining to the open and new damages in the pools were updated.

Cash flow forecasts for technical provisions for damages under LVK's responsibility required by Solvency II reporting, as well as those for the claims reserve of motor insurance major damage pools, were sent to the member companies.

Road safety work and accident investigation

As of the beginning of 2017, road safety work has been fully financed by State aid granted by the Finnish Transport Safety Agency Trafi.

Road accident investigation teams investigated 210 (240) fatal road accidents. According to the preliminary data, there were 226 road traffic fatalities, 36 less than the year before.

A total of 168 road accidents that led to the death of a person travelling in a motor vehicle were investigated, as well as 42 accidents resulting in a death of a pedestrian or cyclist and 142 accidents that were included in special projects, all in all 352 accidents. The focus of the investigations was re-targeted at the investigation of serious injuries, and the related research project was continued.

Data collection processes were automated, and a new user interface for sharing information was developed.

The Centre participated in the operations of the ETSC, the Nordic Road Association and Nordic accident investigation organisations.

Technical matters

The number of inspection requests received by LVK during the year was 997 (824).

The development of the Cabas calculation system was continued. The update of painting time recommendations between vehicle and insurance sectors was continued by deploying a new time level in Cab Group AB's painting time survey. The project for updating the damage repair working time level (Mysby damage repair working times in the Cabas system) was brought to completion.

The practice of forwarding risk classification data to member companies that was introduced in support of vehicle and motor liability insurance operations was continued, and the provision of monthly repair cost statistics was commenced.

Communications and stakeholder activities

Basic information was provided relating to the Motor Liability Insurance Act; for example, LVK's page on the comprehensive reform of the Motor Liability Insurance Act attracted more than 10,000 visitors. All in all, the number of visitors on LVK's website increased considerably, by 78% compared to the previous year.

The General Assembly of the international Green Card traffic insurance system was arranged. The purpose of the event was to develop and deepen the cooperation between the member countries.

The joint traffic safety work of the insurance sector celebrated its 50th anniversary. The joint traffic safety work was continued with the other operators in the sector. For example, the Finnish Crash Data Institute (OTI) took part in the SuomiAreena event together with organisations of the vehicle and transport sector. Of road safety topics, annual statistics and the car model study, among others, received special media attention. LVK prepared a guide for foreign drivers on driving in winter conditions in collaboration with the Central Organisation for Traffic Safety in Finland (Liikenneturva).

An internal change and project communications model was prepared. Our social media guidelines were revised to meet the demands of the current situation. Experts also took more responsibility for social media content as well.


LVK paid a total of EUR 6.5 (8.1) million in compensation during the financial year. Claims reserve at the end of the financial year stood at EUR 53.3 (55.1) million. The pay-as-you-go system compensations paid by LVK totalled EUR 4.6 million Approximately EUR 6.7 (4.9) million of actual compensation was paid for road accidents caused by foreign vehicles. The amount of forwarded payments totalled EUR 1.8 (9.6) million, of which EUR 0.05 (1.1) million was rendered to the Insurance Rehabilitation Association of Finland (VKK) and EUR 1.8 (1.7) million to the Traffic Accident Board.

LVK's own operating expenses (claim handling and administrative expenses excluding depreciation and finance expenses) totalled EUR 6.9 (6.4) million.

LVK received a total of EUR 2.7 (3.9) million of income from capitalised damages, statements and processing fees.


A total of 51 person-years were used in LVK's operations. In addition to its own staff, LVK also had joint staff shared with other organisations within the Insurance Centre.

Cooperation with the Finnish Workers' Compensation Centre was intensified.

Assessment of likely future development

No phenomena with immediate effect on future development can be seen in the operating environment in the short term after the end of the financial year.

Howeve, the accelerating technological development and digitalisation of society will have a considerable impact on the motor liability insurance sector and road accident risks in the future.

Bodies of the Motor Insurers' Centre in 2017


  • Antti Huhtala, OP, Chair
  • Mika Aho, Fennia
  • Tapani Alaviiri, LocalTapiola
  • Mikko Pöyhönen, If
  • Sami Lommi, Folksam
  • Sari Styrman, Pohjantähti until meeting 2 (28 February 2017), after which Pohjantähti was represented, in an expert capacity, by Veijo Santala at meeting 4 (25 April 2017) and Krista Rantala as of meeting 6 (5 June 2017).
  • Mikko Pöyhönen, If P&C Insurance Ltd (publ), branch in Finland, until meeting 10 (27 September 2017), after which the company was represented, in an expert capacity, by Peter Roselius as of meeting 11 (20 November 2017).

Executive management of LVK in the Insurance Centre Group

  • Ulla Niku-Koskinen, Managing Director
  • Jari-Matti Lifländer, Director of Administration
  • Janne Jumppanen, Director of Motor Insurance Unit
  • Kalle Parkkari, Traffic Safety Director
  • Simo Sarvamaa, Director of Actuarial Affairs until 29 September 2017
  • Ville Lilja, Director of Actuarial Affairs as of 20 November 2017
  • Asko Nio, Director of Legislative Affairs
  • Leena-Mari Tanskanen, Head of Communications


Oy Tuokko Ltd

  • Jari Miikkulainen, APA
  • Janne Elo, APA

Jari Miikkulainen, APA, served as the controlling auditor.

The official annual accounts are available for viewing at the LVK office, Itämerenkatu 11–13, Helsinki.