Svenska Kommun Försäkrings AB (SKFAB) started its insurance business in 2003 and is reporting its seventeenth year of operation in 2019.
The company is owned by the Municipality of Gävle, the Municipality of Sundsvall, the Municipality of Kiruna, the Municipality of Piteå, the Municipality of Uppsala, the City of Trollhättan, the Municipality of Trondheim, the City of Helsingborg, the Municipality of Örnsköldsvik and the Municipality of Umeå. The option to become a shareholder in SKFAB is only available to municipalities.
The Board has also decided that the company will be open to accepting more municipalities in Sweden and Norway as shareholders in the company.
The company was established to enable its shareholders, and the associations wholly or partly owned by them, to obtain insurance cover that is suited to their needs through long-term municipal collaboration and on the most favourable terms possible. In addition, the company coordinates and manages risk and loss-prevention measures on behalf of the owner municipalities, with the focus on preventing arson and water damage. Under its articles of association, SKFAB is prohibited from operating on any market outside its shareholder base.
The registered office and head office are located in Gävle.
Focus on loss-prevention measures
SKFAB has been a success story for its owner municipalities, which have been able to save millions of Swedish kronor over the years. With a clear business concept that the owner municipalities understand, the company has created an impressive level of expertise in risk management and loss prevention within the municipalities, which has resulted in a reduction in claims. Eliminating or reducing claims provides the municipalities with an immediate pay-off, as they then receive funding from SKFAB for loss-prevention projects.
Since its establishment in 2003, SKFAB has worked with a loss-prevention focus to prevent claims. Although this is very long-term work, we are now seeing clear results of our efforts.
Each municipality is responsible for its own risk in its own profit centres, which means that low claims bring an immediate pay-off and return for the shareholders – funds to be used for loss-prevention purposes.
The population of our ten owner municipalities exceeds 1,100,000, and the company has a strong economic platform and a clear business concept as a basis. The Board decided in 2013 to make it possible for new municipalities in Sweden and Norway to become shareholders of the company.
Effective risk financing
Ownership of a dedicated insurance company is a tool in the municipalities' risk management work, and it has also created many positive effects and considerable economic benefits for the owner municipalities.
It is important for us as a company to professionally present our loss-prevention work to the reinsurance market and demonstrate how SKFAB is a tool in the owner municipalities' risk management efforts.
SKFAB is a large purchaser of reinsurance, with a total insured value of SEK 252 billion. Good relations with the reinsurance market are important and great care is given to presenting the insurance risks of our owner municipalities to the international reinsurance market.
The world in which we operate
Co-ownership of an insurance company is a modern and effective tool in risk management. We have already been emulated and more municipalities will undoubtedly discover the benefits of having their own insurance company.
Today, more than half of Sweden's population lives in the 105 or more municipalities that are owners or co-owners of municipal insurance companies. In addition to Svenska Kommun Försäkrings AB and Kommungaranti Skandinavien Försäkrings AB, which are sister groups of companies, there are now six municipal insurance companies, S: t Erik Försäkrings AB in the City of Stockholm, S:t Erik Liv Försäkrings AB, Försäkrings AB Göta Lejon in the City of Gothenburg, Kommunassurans Syd Försäkrings AB, consisting of municipalities in southern Sweden, Förenade Småkommuners Försäkrings AB, which consists of smaller municipalities and Stockholmsregionens Försäkrings AB, which consists of municipalities around Stockholm.
The municipal insurance companies are engaged in intensive cooperation and exchange of experience, both in the areas of risk management and administration.
A very important task for SKFAB is to maintain and enhance the already high quality of loss-prevention work and to continue to be the owner municipalities' obvious choice for insurance and risk management issues.
SKFAB must also remain an attractive partner for our reinsurance providers so that we continue to obtain good terms, which means that we in turn can offer good insurance cover at reasonable premium levels to the municipal owners.
The company has the goal of growing internally by signing up additional municipality owned companies through the implementation of a common risk management and insurance policy. It is also the ambition of the company to add further municipalities in Sweden and Norway as shareholders.
In conclusion, SKFAB continues to stand on a strong economic platform and we look forward with great confidence to a future of great development potential.