Automated decision making for statutory insurances

If utilizes automation in certain decision-making situations related to insurance and compensation. The use of automation speeds up processes, benefiting both the customer and If.

The regulations concerning automated decision-making procedures, which came into effect on May 1, 2023, set requirements for public administration entities. These requirements also apply to insurance companies insofar as they concern the automated decision-making of statutory insurances.

Statutory insurances include motor insurance, workers’ compensation insurance and patient insurance. For statutory insurances, automated decision-making procedures can be used under certain conditions.

What is automated decision-making?

Automated decision-making means that a human does not participate in the decision-making process; instead, it is resolved through automated data processing.

According to the law, automated decision-making can be used in statutory insurances under the following conditions:

  • The matter does not involve case-specific discretion.
  • The matter involves case-specific discretion, but the handler has assessed the discretionary aspects before making the decision.
  • The automated decision must be based on pre-established rules.

If automation is only partially used in the decision-making process, meaning a human is involved, it is not considered automated decision-making as defined by law.

If uses automated decision-making in certain matters related to motor insurance, workers’ compensation insurance, and patient insurance.

Informing and implementation decisions

As a result of the new legislation, If will inform about automated decision-making in the decision notice and publish implementation decisions of automated decision-making processes on If’s website.

The implementation decisions will clarify, among other things, the laws under which automated decision-making is applied.

If’s automated decision-making processes and implementation decisions

Granting of motor liability insurance

Based on the personal identification number or business ID and registration number provided by the customer, as well as vehicle information obtained from Traficom, company information obtained based on the business ID, and insurance and claims history information obtained from insurance companies’ registers for individual customers, the system displays the premium and the amount of bonus discount for the individual customer. Upon the customer’s acceptance of the offer, the system activates the insurance.

Granting of motor liability insurance, insurance premium at the turn of the insurance period, and insurance premium in change situations, implementation decision (pdf, in Finnish).

Motor liability insurance premium at the turn of the insurance period

Based on the customer’s personal identification number or business ID and registration number, as well as vehicle information received from Traficom and the customer’s insurance and claims history, the system calculates the premium for the insurance according to the insurance company’s premium principles and the bonus discount for individual customers according to the rules stated in the motor liability insurance terms.

Granting of motor liability insurance, insurance premium at the turn of the insurance period, and insurance premium in change situations, implementation decision (pdf, in Finnish).

Motor liability insurance premium in change situations

When the system receives information from the Digital and Population Data Services Agency about a change in the address of an individual customer, it re-prices the insurance according to the customer’s new address if the address is a factor affecting the insurance premium in the premium principles.

When the system receives information from the Digital and Population Data Services Agency about the death of an individual customer who was the policyholder, it changes the policyholder to the estate and re-calculates the premium according to the applicable pricing criteria.

When the system receives information from Traficom or from the customer’s notification on If’s own pages about the decommissioning or commissioning of a vehicle, it credits or charges the insurance premium according to the applicable insurance terms.

When the system receives information from Traficom about a change in the usage information of an individual customer’s vehicle, it adjusts the insurance premium according to the applicable premium principles.

Granting of motor liability insurance, insurance premium at the turn of the insurance period, and insurance premium in change situations, implementation decision (pdf, in Finnish).

Motor liability insurance, claim compensation

Once the claims handler has made a compensation decision, the system pays invoices related to, for example, vehicle towing, repairs, or rental of a replacement car. An invoice that does not meet predefined criteria is directed to the claims handler for processing.

Motor liability insurance, claim compensation, implementation decision (pdf)

Motor liability insurance, damage assessment of a damaged vehicle

The compensation costs for a damaged vehicle are assessed based on information received from the repair shop and other damage-related information. The system performs the assessment and sends a response to the repair shop if If’s specified conditions are met. Otherwise, the matter is directed to a technical expert for handling.

Motor liability insurance, damage assessment of a damaged vehicle, implementation decision (pdf)

Workers’ compensation insurance’s final insurance premium

At the end of the insurance period, the payroll information by occupational class, which forms the basis of the insurance premium, is requested from the income register. Based on the payroll information and other up-to-date information, the final insurance premium is calculated according to the insurance company’s premium principles. The system handles the final insurance premium calculation for If Spot on tariff and individual rating insurances.

Workers’ Compensation insurance’s final insurance premium, implementation decision (pdf, in Finnish).

Workers’ compensation insurance’s own cost invoicing in If Spot on individual rating

The own cost invoicing in If Spot on individual rating is calculated at intervals specified in the insurance policy. The system takes into account the compensations paid during the period and determines the own cost portion according to the insurance company’s premium principles, considering the own cost limit applicable to the insurance.

Workers’ compensation insurance’s own cost invoicing in If Spot on individual rating, implementation decision (pdf, in Finnish).

Entrepreneur’s accident insurance premium at the turn of the insurance period

The YEL income required as the basis for the insurance premium is requested from the Finnish Centre for Pensions for the annual renewal. Based on the YEL income and other up-to-date information, the system calculates the insurance premium according to the insurance company’s premium principles. Unlike other workers’ compensation and occupational disease insurances, the entrepreneur’s accident insurance does not have a separate final premium calculation at the end of the insurance period; the advance payment is the final insurance premium.

Entrepreneur’s accident insurance premium at the turn of the insurance period, implementation decision (pdf, in Finnish).

Patient insurance premium at the turn of the insurance period

Based on up-to-date information and the insurance company’s premium principles as of the renewal date, the system calculates the insurance premium for the upcoming insurance period.

Patient insurance premium at the turn of the insurance period, implementation decision (pdf, in Finnish).

If you need more information, you can send an email to rekisteriselosteet@if.fi.

You can also find our customer service contact details comprehensively on our website.