The Financial Supervisory Authority of Norway published an inspection report on KNIF Trygghet Forsikring AS covering governance and control, risk exposure, and capitalisation. The report identifies weaknesses in the insurer’s risk management framework as the business expands outside its core market and increases exposure in Sweden, and it concludes that the firm does not meet its duties as manufacturer of a Swedish payment protection insurance product under section 16-13 of the Financial Institutions Act. The review highlights risk of anti-selection in the Norwegian and Swedish portfolios, linked to growth in the commercial market via agents, discount mandates, and concerns about tariffing competence. Operational risk at the time of the on-site inspection was assessed as higher than normal and above the firm’s desired risk profile, and the authority criticised the 2025 ORSA for not assessing solvency capital needs for operational risk or using stress tests to assess adverse scenarios. Finanstilsynet also found strategic and risk documents insufficiently aligned with actual activity, questioned the lowering of the firm’s overall risk tolerance floor from 220 to 170 percent alongside changes in reinsurance and growth ambitions, and noted reliance on the loss-absorbing capacity of deferred tax as a theoretical reduction in capital requirements. Weaknesses were also flagged in outsourcing governance and ongoing oversight of agents and other outsourced partners, including shortcomings in documentation and the allocation of responsibilities. Finanstilsynet requested that specified documents, including the new solvency contingency plan and related assessments, be submitted with the firm’s 2025 Regular Supervisory Report, and asked for the minutes from the board meeting where the inspection report is considered. The payment protection insurance findings will be followed up in a separate supervisory matter.
Norwegian Finanstilsynet 2026-02-20
Financial Supervisory Authority of Norway finds risk management and product governance gaps at KNIF Trygghet Forsikring and will pursue a separate case on payment protection insurance
Norway's Financial Supervisory Authority's report on KNIF Trygghet Forsikring AS highlights risk management deficiencies as the firm expands into Sweden. It criticizes operational risk assessment, strategic alignment, reliance on deferred tax for capital requirements, and outsourcing governance weaknesses. The authority has requested more documentation and will address payment protection insurance issues separately.