Varma

Expert and flexible pension services

Varma focussed on developing diverse online services in 2013. We revamped the earnings-notification service to make the handling of pension matters easier than before. The Workability Management Information Service, which was launched in the autumn, provides companies with better means of managing their pension costs and improving their operations based on up-to-date information.

The year under review was characterised by numerous co-determination negotiations and layoffs caused by the structural change in working life, and the situation also affected Varma’s clientele. Varma's total premium income increased to EUR 4,258 (4,230) million, of which TyEL policies accounted for EUR 4,071 (4,041) million and YEL policies for EUR 187 (190) million. At year-end, Varma provided insurance for 531,200 (539,700) people.

Competition within the earnings-related pension sector remained brisk, and the volume of insurance account transfers has doubled in recent years. In terms of Varma’s sales, 2013 was especially good in medium-sized companies, and the trend was positive also among the self-employed. Varma has traditionally provided pension insurance to large companies, and this is still strongly reflected in our clientele.

Varma takes care of its clients’ earnings-related pension cover in a cost-effective way. Varma reserved EUR 105 (78) million, i.e. 3.4 (2.5) per cent, of the employers’ TyEL contribution from 2013 for client bonuses. For several years, Varma has given its clients the best bonuses in the sector, and in 2013 the company maintained the bonuses at a competitive level. Client bonuses lower the employers’ final contributions. The amount of the bonuses is influenced by the pension company’s solvency capital and by the loading profit, an indicator of the cost-effectiveness of the operations.

Increasing competition within the earnings-related pension sector benefits both the earnings-related pensions system and customers, and Varma is open to developing competition. The Ministry of Social Affairs and Health is preparing a bill which, if adopted, would allow company-specific expense loading.

Services target added value for our customers

Varma develops its customer service by listening to the customers and charting their needs. In 2013 we focussed on improving the online service used to report earnings. Thanks to the streamlined service, our customers can now handle everything in one in one go, which makes the handling of pension matters faster. Our customers are avid users of our online services, and handling matters electronically is now preferred over contacting us by phone.

Varma has customer-service professionals who specialise in insurance and pension matters that particularly concern entrepreneurs and small businesses. For self-employed clients and small client companies, Varma offers a comprehensive service network with our co-operation partners, If P&C Insurance and Nordea Bank. Co-operation with these companies was reinforced during the year to give our corporate customers improved overall service. The self-employed and executive management of companies now have access to comprehensive information about the services of all three companies so that the customer can take care of their insurance, pension and banking matters in one go.

Major employers are served by Varma’s company-specific service teams, which channel our experts’ knowledge for the benefit of our customers. Major employers benefit from the new Workability Management Information Service, through which they can analyse the current disability risk, examine the savings potential related to the disability contribution category and make preliminary calculations. We aim to develop services that provide added value and cost benefits to our customers. Varma’s website also includes a wide range of workability management tools for day-to-day work.

Number of insured and insurance policies
31 Dec. 201331 Dec. 2012Change
Number of insured
TyEL 1491,400498,460-7,060
YEL39,81041,280-1,470
Total531,210539,740-8,530
1of which covered by TEL registered supplementary pension insurance4,9285,545-617
Number of insurance policies
TyEL26,93027,620-690