Reputation Study in the Insurance Sector: Folksam, Länsförsäkringar, and Hedvig at the Top

An industry study by Reputation And Trust Analytics reveals that only three companies in the Swedish insurance sector have a good reputation based on public perception: Folksam at the top, followed by Länsförsäkringar and Hedvig. The other players in the market are trailing behind at lower, moderate levels.

Reputation and Trust Analytics surveyed the reputation of 10 organizations, with a total of 2,675 respondents. Of the top three organizations, Folksam achieved a reputation score of 3.61, Länsförsäkringar 3.53, and Hedvig 3.50. Trygg Hansa, with a score of 3.49, is within the statistical margin of error of reaching the 3.50 threshold for a good reputation.

The Reputation&Trust survey model calculates a reputation score for each organization on a scale of 1 to 5 based on eight underlying business dimensions that determine reputation. The survey examined the public reputation of 10 organizations. The ranking is based on the reputation scores that the Swedish public assigns to the organizations.

 

Organization | Reputation

  1. Folksam 3.61
  2. Länsförsäkringar 3.53
  3. Hedvig 3.50
  4. Trygg Hansa 3.49
  5. ICA Insurance 3.42
  6. Skandia 3.41
  7. Dina Insurance 3.37
  8. Gjensidige 3.34
  9. If 3.33
  10. Bliwa 3.20

 

– Apart from the three companies with the highest reputation, the other organizations surveyed achieve a moderate level. It is surprising that only three insurance companies achieve a good level, especially since this is an industry that sells security based on trust. We had expected to see more organizations with a better reputation, says Alexander Widén, advisor at Reputation And Trust Analytics.

 

None of the insurance companies surveyed are perceived to have a poor or very poor reputation. A rating of less than 3.00 is considered poor, while a rating of less than 2.50 is considered very poor on the scale.

 

“Building trust in an organization requires active, ongoing effort and often takes time. Trust must be earned, and public opinion is usually slow to change. That is why it is interesting that Hedvig, a disruptor in the industry founded as recently as 2017, has already established itself among the most highly regarded companies,” comments Widén.

 

“A poor reputation leads to mistrust, which is particularly challenging in this industry because customers need to be able to rely on their insurance company when they really need it. Reputation is therefore an especially important asset for organizations in this industry,” says Riku Ruokolahti, Head of Development at Reputation and Trust Analytics.

 

Reputation & Trust 2024: Industry study of the Swedish insurance sector. The figures in the chart reflect the public’s view of the industry as a whole.

 

The insurance industry's reputation score is 3.22, which is a moderate level. A score of 3.50 is considered good.

The survey shows that the industry’s financial performance is viewed as the best-performing dimension in terms of reputation. The worst-performing dimensions in the insurance sector are Responsibility, Products & Services, Dialogue, and Governance.

– Insurance companies’ services are generally perceived as quite expensive relative to the value they provide. Other areas that received relatively low ratings include accountability, governance, and dialogue. The perceived assessment of financial performance is quite high compared to previous evaluations, Ruokolahti summarizes.

 

Here's how we conducted the study

The purpose of the industry study on the Swedish insurance sector was to identify which insurance companies are popular among Swedes. The data was collected via an online survey between May 10, 2024, and June 3, 2024.

The organizations were evaluated using the Reputation&Trust survey model, in which an organization’s reputation score is the average of eight different dimensions of reputation. These are Governance, Financial Performance, Leadership, Innovation, Dialogue, Products & Services, Workplace, and Responsibility. The survey uses a five-point rating scale (1–5). 2,675 Swedes participated in the survey. The sample was weighted to be representative of the population by gender, age, and residential area.

 

For more information, please contact:

Alexander Widen, Senior Advisor, Reputation and Trust Analytics AB
+46 70 471 2332
alexander.widen@reputationandtrust.com

Riku Ruokolahti, Development Director, Reputation and Trust Analytics AB
+358 400 512 200
riku.ruokolahti@reputationandtrust.com

 

More information:

Reputation and Trust Analytics helps companies and organizations measure, understand, and manage their reputation. Through our evidence-based and data-driven approach, we can demonstrate the impact reputation has on stakeholder trust and behavior, and help organizations steer their operations in a more competitive and sustainable direction based on these insights. Reputation & Trust Analytics is a subsidiary of the Finnish company T-Media, which introduced the survey model in 2013. Since then, it has been used more than 2,000 times worldwide and is utilized by all universities in Finland, 22 of Finland’s 25 largest companies, and many government organizations. In Sweden, Reputation & Trust Analytics opened its local office in January 2024.

 

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