The year 2022 turned out very different to what any of us could have anticipated. Russia’s invasion of Ukraine caused grave human suffering and increased fears and uncertainty around the world. The impacts of war manifested themselves discernibly in the global economy in the form of wavering trust and high inflation.
The uncertainty has also been reflected in the confidence of the Finnish consumers in their own economic standing. In December 2022, the estimate plummeted to some of the weakest figures in the entire measuring history. The rise in the price of electricity also impacted the operations of numerous companies, impairing their profitability.
However, the changing global conditions demonstrated yet again that Finland as a society is exceptionally well prepared for crises. In addition to this, we Finns have something that not everybody has and that supports us when the going gets tough: our mutual trust for one another.
This trust is also the foundation of our pension system. According to an international pension comparison conducted in 2022, our pension system is among the best in the world. In recent years, pension assets invested in funds have performed favourably, albeit the year 2022 was a challenging year for the financial market.
Designated contact person for assistance and advice
Veritas handles the statutory pension security of over 120 000 persons. At the end of the year, nearly 68 000 employees and more than 14 000 entrepreneurs were insured by Veritas. Pension was paid out to close to 39 000 pension recipients.
In terms of sales, the year 2022 was Veritas’ all-time best if measured in the amount of euros earned. During the year, Veritas’ premium income increased by 13.4 per cent, to nearly EUR 700 million and the payroll of the companies insured by Veritas increased by 10.9 per cent during the year. I am delighted that more and more companies are relying on Veritas as their pension insurance partner.
It is no secret that we are heavily invested in customer service. At Veritas, every single customer is assigned a designated insurance advisor, who is there to provide assistance and advice. Even difficult matters are easily handled when you are dealing with someone you know.
However, how could I write about last year without mentioning the change negotiations under the Act on Co-Operation in Undertakings that we commenced in March. The objective of the negotiations was to optimise the company’s operations and to improve processes. Efficient processes allow us to focus on what matters the most, i.e., serving our customers. For employer customers, the changes are also reflected in lower prices.
Trust needs to be earned
The reform of the Self-Employed Persons’ Pension Act was the topic that sparked the most debate during the year. The debate was an excellent indicator of the fact that not all entrepreneurs trust the pension system. The parliament made additional amendments to the Government Bill to address the concerns raised by small business owners. However, overall the modifications were minor and this is why I consider it important that the development of the pension and social security for entrepreneurs is continued further. Entrepreneurs deserve a pension system that is worthy of them.
The other topic that invoked widespread discussion in the autumn was the exceptionally high index increase, propelling the rise in the volume of pension applications in all pension companies. At Veritas, the number of applications doubled during the period of October through December compared to the equivalent time period in the preceding year.
It is natural that many do not become interested in pension matters until they are nearing their own retirement age. It is important, however, also for young people to comprehend the basic principles of the pension system.
Our task as a pension company is to reinforce reliance in the pension system. This requires the dissemination of knowledge and open discourse. It is important that we work every single day to earn that trust.
The accelerating rate of responsibility work
At Veritas, responsibility is embedded in everything we do. In our review, we provide further details on what the year of responsibility 2022 looked like at Veritas.
We have embarked upon a good journey. I can promise you that we will not be slowing down in 2023.
Carl Haglund
Chief Executive Officer