Social policy in Finland involves a three-step approach to income security for dealing with risk:
- minimum security financed from taxation,
- earnings-related income security by statutory social insurance,
- income security arranged by private insurance.
Statutory, compulsory insurance includes:
- earnings-related pension insurance
- accident insurance
- motor liability insurance
- patient insurance
- environmental damage insurance.
In addition to the statutory forms of insurance, people can get insurance cover for themselves or their family using private pension insurance and life insurance.
The Ministry of Social Affairs and Health is responsible for the development of statutory insurance, drafting legislation and confirming the calculation bases of authorised pension institutions.
Private insurance
Private insurance institutions provide both statutory and voluntary forms of insurance. There are also insurance associations, pension foundations, pension and other insurance funds, unemployment funds and other pension institutions.
Earnings-related pensions
Private sector earnings-related pensions are handled by authorised pension insurance companies, pension funds, pension foundations, the Seamen's Pensions Fund and the Farmers' Social Insurance Institution.
The Finnish State Treasury manages the state employees pensions system, and the Local Government Pensions Institution deals with the municipal pension system.