SWEDEN Law and Practice Contributed by: Viveka Classon, Karin Rättzén and Sara Stålebring, Advokatfirman Vinge KB
Cybersecurity During the last few years, cyber-attacks have increased and insurance against cyber-attacks has consequently become a growing market for insurance undertakings. The Swedish FSA proposed measures to improve the strength of its supervision concerning cyber-related matters in May 2022. Extreme Weather and Climate Change Climate change is affecting both the frequency and severity of extreme weather events in Sweden, increasing the risk of flooding, stormwater damage, landslides, erosion and thunderstorm-related fires. The Swedish FSA has noted in recent analyses that the Swedish insurance sector is already experienc- ing greater claims volatility linked to hydrological and meteorological events. In February 2025, the Swed- ish FSA also highlighted that more frequent extreme weather may lead to higher costs for insurers, and that there is a risk this could limit consumers’ access to insurance cover over time if adaptation measures are insufficient. The Swedish Civil Contingencies Agency (MSB) and the National Board of Housing, Building and Plan- ning ( Boverket ) have likewise observed that certain climate-friendly technologies and construction meth- ods adopted to reduce emissions may introduce new fire, water or structural risks, which insurers increas- ingly factor into their risk assessments. MSB has, for example, pointed to elevated fire risks associated with battery storage systems, while several insurers have reported a higher incidence of stormwater intrusion in newer, densely built areas. 11.2 New Products or Alternative Solutions Home and Real Estate Insurance in Light of Climate Change As climate-smart, timber-based modular construc- tion gains traction in Sweden, several insurers have responded to emerging fire and moisture risks by tightening underwriting guidelines, raising premiums, or restricting renewals, particularly in non-consumer segments. This has prompted brokers to increas- ingly turn to international capacity solutions, notably through Lloyd’s, to secure coverage for assets that domestic insurers classify as higher risk. While regula- tors and trade associations, including Insurance Swe-
users with quick access to coverage and streamlined claim reporting. Even other established insurance undertakings are starting to offer services through mobile apps. Embedded Insurance In Sweden, neobanks and e-commerce platforms appear to be contributing to a gradual expansion of embedded insurance by integrating real-time, tailored policies into digital purchase flows. Swedish bank SEB’s partnerships with insurtech companies Hedvig and Insurely together reflect ongoing developments in more digitalised transaction environments in which embedded insurance could become a more common In 2017, the Swedish FSA established an innovation centre with the task of being its first point of contact for companies that are uncertain about rules, process- es and principles on the financial market in connection with innovations. The aim with the innovation centre is to provide companies with the information they need to move forward in a simpler and faster way. distribution model over time. 10.2 Regulatory Response 11. Emerging Risks and New Products 11.1 Emerging Risks Affecting the Insurance Market PFAS-Related Injuries In recent case law, the Swedish Supreme Court has established that elevated levels of PFAS in the blood constitute a compensable personal injury under tort law. The PFAS liability issues have raised several fun- damental concepts of tort law, but also questions in the insurance area. Claims related to PFAS present a challenge for insur- ance companies, as these claims have evolved from being solely environmental to now involving personal injuries, which could lead to high liability insurance costs. As a result, insurance companies have increas- ingly opted to deny PFAS-related claims, and some insurers have explicitly excluded PFAS-related injuries from coverage.
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