Tapiola Group www.tapiola.fi
Social Responsibility Report 2005
The purpose of sustainable development is to ensure a good living
environment for the present and future generations. The company’s
values, the character of its business and its operating environment
define the company’s social effects. For the Tapiola Group, mutuality
is a special characteristic that presents particular requirements for
openness and responsibility.
of the Report
This is the third Social Responsibility Report published topics and improve readability. The text does not follow
by the Tapiola Group. It discusses the events, results and the disposition suggested by the GRI, but the codes for
effects of 2005. Additional information is available on the key ﬁgures presented in the comparison table have
our website at www.tapiola.ﬁ > Brieﬂy in English> Tapi- been inserted in the text as superscripts, e.g. (123). This
ola Group> Society and Environment (GRI 2.22) including the facilitates the checking of data and hopefully helps read-
principles of social responsibility at Tapiola. This report ers unacquainted with the subject to understand why the
includes some key ﬁgures used in the ﬁnancial statements text comments on something that appears strange, even
in the insurance business. Their deﬁnitions are found in irrelevant, in our society and at Tapiola in particular.
Finnish at www.tapiola.ﬁ > Tapiola-ryhmä> Taloudellisia
tietoja> Tunnuslukujen määritelmät. Tapiola has continued to develop its statistics. For exam-
ple, there are now more key ﬁgures available on personnel
Where applicable, this report is based on the Global Re- than before. The number of environment responsibility key
porting Initiative (GRI) reporting recommendation. The ﬁgures has also increased considerably. Now that Tapiola
GRI is a leading international institution that develops has joined the Green Ofﬁce system, it can for the ﬁrst
sustainability reporting guidelines. These guidelines have time present ﬁgures on carbon dioxide emissions. In the
been useful for selecting the topics to be discussed. How- previous reports the calculation has been too complicated
ever, the recommended extent and level of detail can- compared with the beneﬁt achieved. The information on
not be applied as such to a group of service companies regional inﬂuence has also developed. Otherwise there
doing business in Finland only, with abstract products are no changes in the calculation methods. (2.19)
that do not require storage, transport or packaging. Ex-
ceptions from the GRI’s recommendations and incom- We are proceeding towards external report certiﬁcation.
plete key ﬁgures are listed in a comparison table at the The preparation of this report involved preparing for
end of the report. the certiﬁcation process by internal auditing. (2.21) The
development and developing of reporting is discussed in
Tapiola’s Social Responsibility Report is intended for more detail later in this report. Some of the ﬁnancial in-
the customers and those representatives of the custom- formation has been audited, and various other methods
ers who participate in Tapiola’s management and the were used to conﬁrm the accuracy of the rest of the infor-
advisory committees. They expect reports that do not mation. The text of the entire report has been checked
describe the Group’s business merely in numbers. The and approved by the members of the Group’s Boards of
structure of the present report has changed slightly from Directors. The report was discussed in a joint meeting of
last year. The objective was to clarify the structure of the the Boards of Directors on 4 April 2006.
Topics in the Financial Industry in 2005
• Survivor’s pension rapidly for the families of disap- effects of the reform of the Act on Employee Pension
peared tsunami victims Insurance Companies
• Responsibility of the individual vs. the society; too • Puro’s committee investigates how the return from em-
much trust in the social security system makes ployee pension funds could be improved while simul-
people forget their need for individual security taneously supporting Finnish work and ownership
• Global warming is becoming more and more expensive • Pension insurance companies’ investments in the
for the ﬁnancial industry Finnish market cannot be increased
• The damage caused by the January storms became a • Information about banking services for the elderly
credibility test for insurance companies
• Expenses of mutual funds remain partly hidden
• Insurance companies speed up the claims handling
• Compare banks, not just margins
of cars involved in the massive multi-car crash
• Good reputation is a factor of success in the global
• Matti Louekoski, Deputy General of the Bank of
Finland, was appointed rapporteur to study the
2 Tapiola Group
Introduction by the President: (1.2.)
Responsibility Calls for Transparency
The Confederation of Finnish Industries EK recommends the expression ”responsible busi-
ness” instead of ”social responsibility”, at least when addressing the public. This certainly
facilitates the dialogue on this important topic. The matter is too important to be fostered
in the insider discussions of experts only.
Even at Tapiola, the concept of responsible business is not yet clear to everyone. I am sure
that anyone can list things that are well, but few would classify these as social responsibil-
ity. Even fewer can tell what social responsibility actually comprises, let alone identify it
in their daily work. However, responsibility already exists in our everyday life, but without a
label. Caring for the customers, the working community and one’s own responsibilities are
included in social responsibility.
Companies are part of the society, and each larger company is actually a miniature society
in itself. Even if a company makes good proﬁt for the owners and customers and pays tax-
es, it cannot be responsible if it simultaneously spoils the nature and causes illness to em-
ployees or residents, for example. A company must keep its economy in proper condition,
but not at the cost of people and nature. We must also remember that our responsibility is
not limited to this day, or even to the day after tomorrow. We must not spoil our grandchil-
dren’s future either.
Tapiola is inﬂuential enough in the insurance and ﬁnancial sector to have an effect on so-
ciety, local communities, other companies and families. Responsibility calls for openness
and transparency of operation and information. We must inform about our actions and
explain our solutions so that our owner-customers and other stakeholders understand
what we are doing and can evaluate our operation. This is the only way to demonstrate our
reliability and trustworthiness.
Mutuality presents special requirements for openness and re-
sponsibility in the Tapiola Group. The mutual company has been
established to satisfy our owner-customers’ service needs. The
customers beneﬁt from our results and long-term operation, and
through competition the entire society beneﬁts.
Tapiola Group 3
Table of Contents
The Content of the Report ......................................................................................................................... 2
Topics in the Financial Industry in 2005 ...................................................................................................... 2
Introduction by the President: Responsibility Calls for Transparency .............................................................. 3
Table of Contents ....................................................................................................................................... 4
Tapiola Group ........................................................................................................................................... 6
Service network from Tammisaari in the south to Kittilä in the north ..................................................... 6
History goes back nearly 150 years .................................................................................................... 7
Mutuality as a Special Feature .................................................................................................................... 8
Supervisory boards have an important role in the governance by owners ................................................ 8
Risk Management ...................................................................................................................................... 9
Distribution of risk to the beneﬁt of the customers .............................................................................. 9
Social Responsibility Principles Based on Values ........................................................................................ 10
Business idea and values ................................................................................................................ 10
Distribution and organisation of social responsibility in Tapiola Group ................................................. 11
Development of Quality Is Based on Self-Evaluation .................................................................................... 13
Legality and Compliance with Agreements.................................................................................................. 13
Responsibility Is Essential in Our Field of Business..................................................................................... 14
We adhere to the rules .................................................................................................................... 14
We bear our responsibility for the future ........................................................................................... 14
Policies and principles of responsibility ............................................................................................ 15
We are aware of the effects of our operation ..................................................................................... 15
Mutuality in Practice ................................................................................................................................ 16
Customers evaluate the realisation of mutuality ................................................................................ 16
Interaction with Stakeholders ................................................................................................................... 17
Review on Cooperation with the Stakeholders in 2005 ................................................................................ 17
Agents represent Tapiola in customer service .................................................................................... 17
Networks provide added value for customers ..................................................................................... 17
Selection of subcontractors is based on values .................................................................................. 18
Interaction with society .................................................................................................................. 18
Cooperation with commercial and industrial life ................................................................................ 18
Deﬁnitions for consumer cooperation ............................................................................................... 19
Sponsoring and donations for socially responsible purposes ............................................................... 19
Tapiola as Neighbour................................................................................................................................ 20
Local impacts of Tapiola’s business ................................................................................................ 20
Global cooperation based on protecting mutual interest ..................................................................... 21
Social Distribution of Income 2004–2005 ................................................................................................. 24
Stable Development and Proﬁtable Growth ................................................................................................. 25
Year 2005 for Various Business Sectors ..................................................................................................... 25
Non-life insurance ......................................................................................................................... 25
Life insurance ............................................................................................................................... 26
Employee pension insurance ........................................................................................................... 26
Banking ........................................................................................................................................ 27
Saving in mutual funds................................................................................................................... 27
Asset management ......................................................................................................................... 27
4 Tapiola Group
Secure Investing of Assets Means Responsibility towards Customers ............................................................. 28
Tapiola Pension’s principles of responsible investment....................................................................... 29
Real Estate Operations ............................................................................................................................. 30
Construction and maintenance services ............................................................................................ 30
Other Financial Impacts ........................................................................................................................... 30
Responsibility for Personnel Creates Foundation for Mutual Success............................................................. 31
Year of change 2005 ...................................................................................................................... 31
Number of personnel continues to grow............................................................................................ 31
Participation increases commitment ................................................................................................ 33
Incentive schemes ......................................................................................................................... 34
Personnel beneﬁts ......................................................................................................................... 34
Labour union activity ...................................................................................................................... 34
Satisﬁed personnel will prosper ....................................................................................................... 34
Tapiolan Vire has been registered as trademark ................................................................................. 35
Developing expertise based on the strategy ....................................................................................... 37
Library Information Service guides to the source of knowledge ........................................................... 37
Internal communication to support effectiveness............................................................................... 37
Personnel expenses ........................................................................................................................ 38
Training expenses .......................................................................................................................... 38
We Bear Our Responsibility for Customers and to Customers ........................................................................ 39
Development of number of customers .............................................................................................. 39
Service for the needs of the customers ............................................................................................. 39
New products and services 2005..................................................................................................... 40
Risk management services .............................................................................................................. 41
International services ..................................................................................................................... 41
Research and Customer Surveys ................................................................................................................ 42
Customer satisfaction studied in all customer segments..................................................................... 42
Marketing Communications Is Relevant and Ethical .................................................................................... 43
Communications to customers......................................................................................................... 43
Customer beneﬁt policy .................................................................................................................. 43
Share of customers in the proﬁt 2005 ............................................................................................. 43
Saving Natural Resources is Part of Daily Work ........................................................................................... 44
Tapiola Environmental Policy 2005.................................................................................................. 44
Tapiola committed to Sustainable Development Charter ..................................................................... 45
Green Ofﬁce system and logo .......................................................................................................... 45
Real Estate Operations Environmental Key Figures ...................................................................................... 46
New environmental programme for real estate operations planned ...................................................... 47
Information about Atmospheric Emissions Available for the First Time .......................................................... 48
Environmental impacts of travelling ................................................................................................. 48
Paper Use and Posting ............................................................................................................................. 49
Environmental Impacts of Head Ofﬁce Operations....................................................................................... 49
Development of Reporting ........................................................................................................................ 51
GRI Comparison ...................................................................................................................................... 52
Key ﬁgures .............................................................................................................................................. 54
Contact information ................................................................................................................................. 55
Tapiola Group 5
Tapiola is a group of companies owned by the policyhold- Turva sells Tapiola’s life and pension insurances to its
ers. (2.6.) It consists of four insurance companies – Tapiola non-life insurance customers. For Tapiola, Turva is a busi-
General Mutual Insurance Company (2.1.) (Tapiola Gener- ness partner and a sales channel whose performance is
al), Tapiola Mutual Pension Insurance Company (Tapi- being monitored. The cooperation between Tapiola and
ola Pension), Tapiola Mutual Life Assurance Company Turva is managed at Board level and in various coopera-
(Tapiola Life) and its subsidiary Tapiola Corporate Life tion groups.
Insurance Ltd (Tapiola Corporate Life) – and the ﬁnan-
cial companies wholly owned by the mutual companies: An expanding range of banking and insurance services
Tapiola Asset Management Ltd, Tapiola Fund Manage- is available to customers on Tapiola’s website on the In-
ment Company Ltd and Tapiola Bank Ltd, which owns the ternet, as well as claims service by telephone. Telephone
majority of shares in the Fund Management Company. In service is available from 8 a.m. to 8 p.m., with separate
addition, the group of companies includes the IT service service numbers for private and corporate customers and
company Tapiola Data Ltd, which is a subsidiary of Tapiola customers who need savings and investment services. In
General, with Etera Mutual Pension Insurance Company emergencies, Tapiola’s Emergency Service answers the
as a minority shareholder. Tapiola Data also provides IT calls of travel, household and motor vehicle insurance
services for Turva Mutual Insurance Company. Turva is customers 24 hours a day, every day of the year. For a de-
a subsidiary of Tapiola General, but it prepares separate scription of the product range (2.2.), please see Customers.
ﬁnancial statements and its ﬁgures and operation are
not discussed in this report. (2.16) This applies also to the
restaurant company Aura-Karelia Oy. In addition to the
abovementioned, the group of Tapiola companies includes
145 housing and real estate companies. (2.4.)
For a review of the Tapiola Group’s ownership and gov-
ernance by owners, please see Management.
Service network from Tammisaari in
the south to Kittilä in the north
Tapiola’s head ofﬁce is located in Tapiola, Espoo, at Re- Kemij rvi
vontulentie 7. During the report year, plans were prepared
to build a second headquarter ofﬁce nearby. The purpose
of the project is to place in two buildings the functions Tornio
now located in ﬁve separate buildings. Pudasj rvi
Office of Tapiola
and Turva Oulu
In 2005, Tapiola had seven regional units led by regional
managers. The regional ofﬁces are located in Helsinki, Raahe Kajaani
Lahti, Turku, Tampere, Seinäjoki, Kuopio and Oulu. In Ylivieska
April 2006 the number of regions was reduced to six. Iisalmi
Tapiola’s services are available at 164 places of business. Saarij rvi
The company has 61 service ofﬁces in the biggest cities Lapua
and 103 entrepreneur-lead places of business with a Alavus Jyv skyl
more limited range of services. Some of these are agency Pieks m ki Kitee
service points. Kankaanp J ms
Tapiola employs 2,730 professionals of insurance and Uusikaupunki H meenlinna Heinola
ﬁnancing (2.8.), plus some 800 authorised insurance Loimaa
Riihim ki Lahti
representatives. In addition, Tapiola gets corporate Salo Lohja J rvenp
customers through brokers. For market information (2.7.), Espoo
please see Customers. Helsinki
6 Tapiola Group
Asset management and fund
Employee pension management companies
Non-life insurance 1920 Direct funds and asset management services
1857 Unit-linked insurance solutions
Calculated interest savings insurance and individual pension insurance
... 1920 2000 2001 2002 2003 2004 2005 2006 ...
History goes back nearly 150 years In the 1920s, non-life insurance was complemented by life
insurance and in the 1960s by statutory earnings-related
Tapiola was founded on 18 June 1982, when the su- pension insurance. In 2000, Tapiola expanded its services to
pervisory boards of its predecessors, Aura and Pohja, the ﬁnancial business by establishing an asset management
decided on the merger. The Group has operated under and a fund management company. In 2002, a decision was
the name of Tapiola since the beginning of 1984. Tapi- made to establish Tapiola Bank Ltd. The bank commenced
ola’s historical roots, however, date back to 1857, when business in February 2004.
a ﬁre insurance association called Suomen Maalaisten
Paloapuyhdistys was founded.
Total ﬁgures for the insurance groups in Tapiola Group
2005 EUR million 2004 EUR million change %
Turnover 2 589.0 2 385.6 8.5
Premiums written 1 958.0 1 798.3 8.9
Net investment income 636.5 597.6 6.5
Claims incurred 1 736.6 1 676.4 3.6
Operating expenses 167.0 155.6 7.3
Investments at book value 10 002.5 9 242.3 8.2
Investments at current value 11 405.6 10 206.3 11.8
Capital and reserves 495.2 429.9 15.2
Technical provisions 10 168.1 9 370.5 8.5
Balance sheet total 11 165.9 10 202.7 9.4
The ﬁgures are audited.
Tapiola Group 7
a Special Feature
Mutuality is the characteristic that best deﬁnes Tapiola In mutual insurance companies, the policyholders are
among its competitors. In Finland, mutual companies also shareholders of the company. In Tapiola Pension,
are found only in the insurance business. The limited shareholders also include employees covered by the TEL
companies in the Group are completely owned by the employee pension insurance. The extent of ownership
mutual companies, and therefore they also comply with makes the role of the supervisory boards distinctly dif-
the principles of mutuality. ferent compared with listed companies.
According to the statistics of the Federation of Finnish The policyholders exercise the power of the owner in the
Insurance Companies, the share of mutual companies annual general meeting, where every shareholder has
in the entire Finnish insurance market was 67.7% in one vote and additional votes depending on premiums
2004, measured as premiums written. The high per- (Tapiola General and Tapiola Pension) or savings (Tapiola
centage is explained by the fact that practically all Life). The general annual meeting appoints the members
employment pension insurance companies in Finland of the supervisory boards, for example. The supervisory
are mutual companies. boards have substantial power of decision and supervising
responsibility in our insurance companies. The supervi-
sory boards are assisted in their supervising activity by a
Supervisory boards have an important cooperation committee that consists of the chairpersons
role in the governance by owners of the supervisory boards.
The Tapiola Group adheres to corporate governance (3.1.), The customers are also represented in Tapiola’s advisory
which is based on the legislation concerning the ﬁnan- committees. The regional advisory committees and the
cial and insurance business, the regulations issued by advisory committees for SMEs, agriculture and forestry
the supervisory authorities and, when applicable, the rec- and Tapiola Bank promote the customer aspect in the
ommendation issued by HEX Oyj, the Central Chamber group’s operations. The advisory committees take part
of Commerce and the Confederation of Finnish Industry in feedback and development discussions on strategic
and Employers in December 2003. priorities, give feedback on services and make propos-
als (3.8.) to the Group’s Boards of Directors. The advisory
committees have about 280 members altogether.
Boards of Directors of supervisory boards
Advisory committees Round table Board
Managing directors Managing
Banking, saving Corporate customers,
and investment Private households major customers Tapiola General Tapiola Pension Tapiola Bank
services Management Group and organisations Management Group Management Group Management Group
Management Group Management Group
Investment Regional operations Data management Personnel affairs
Management Group Management Group Management Group Management Group
*) Tapiola Bank has no supervisory board
Tapiola Pension has a pension affairs advisory commit- More information on the Tapiola Group’s corporate gov-
tee, which is appointed by the Board of Directors. It con- ernance is available in Finnish at www.tapiola.ﬁ-> Tapi-
sists of representatives of labour market organisations ola yrityksenä> Tapiola-ryhmä> Hallinto ja johto> Hal-
and Tapiola Pension. The committee has eight members, lintomalli. (3.2.-3.3.)
and it issues statements on disability pension applica-
tions regarded as borderline cases. The committee met For more information on mutuality in practice, please
11 times in 2005. see Society.
Risk Management (3.13.)
Risk management includes recognition, evaluation, re- Distribution of risk to the beneﬁt
striction and monitoring of business risks and opportu- of the customers
nities in accordance with the agreed principles. The risk
management principles of the mutual group of companies It is in the owner-customers’ interest to minimise the risks
promote the customers’ ﬁnancial security. They emphasise relating to new customer relationships. The current cus-
the importance of good solvency. The objectives include tomers do not want to cover credit losses caused by new
responsible business that exceeds the minimum require- customers or the costs of neglected risk management.
ments of legislation and ofﬁcial regulations so clearly that
the customers and other stakeholders trust Tapiola as a We follow the principle of equality so that we protect the
partner who promotes their ﬁnancial security. beneﬁt of the owner-customers, i.e., the ones sharing the
risk. Our customer and risk selection instructions ensure
In the Tapiola Group, the boards of directors, the man- that Tapiola’s customer base and insurance portfolio
aging directors and other directors are responsible for remain healthy and our competitiveness is reinforced.
risk management and the updating and implementation When the risk increases we utilise the best available ex-
of risk management plans. The audit committee that pertise in decision-making. We have a special policy for
assists the cooperation committee of the supervisory reinsurance.
boards also monitors and evaluates risks.
The Bank follows similar principles in lending. We en-
The controller working in Economy Services is responsi- sure that our customers have sufﬁcient regular income
ble for coordinating the risk management processes as a to manage their loans, a ﬂawless credit history and no
whole. The implementation and procedures of risk man- unsettled ﬁnancial obligations.
agement are also evaluated by internal audits. In addi-
tion, all Tapiola employees are responsible for risk man- In addition, the bank requires an adequate security to
agement in their own work. ensure that any unsettled amounts can be collected from
the income gained by selling the said security in a situ-
More information on the Tapiola Group’s risk management ation where the customer no longer has sufﬁcient income
is available in Finnish at www.tapiola.ﬁ > Tapiola-ryhmä> to pay back the loan.
Tapiola yrityksenä> Hallintomalli> Sisäinen valvonta,
riskienhallinta ja sisäinen tarkastus.
Social Responsibility Principles
Based on Values (3.7.)
The Tapiola Group has conducted internal discussion on Mutuality places special requirements on openness and
social responsibility questions since the end of the responsibility in the Tapiola Group. The Group’s Boards
1980s. At that time, nine Tapiola principles were deﬁned, of Directors deﬁned Tapiola’s social responsibility prin-
and they were discussed among the personnel and the ciples in 2002. A committee of 11 members constitutes
governing bodies. This was a good foundation for build- the preparatory body for issues relating to the develop-
ing company culture and conducting value discussion in ment of social responsibility, and it reports to the Board
accordance with the ideas and opinions of the mid- of Directors annually. The committee has representatives
1990s. Along the years Tapiola has ended up with four from different parts of the organisation. The Elected Rep-
values that the personnel and management largely agree resentatives represent the clerical employees and sales
on, according to the results of regular work atmosphere personnel. The merit pay system for the members of the
surveys. Boards of Directors includes target criteria that are in-
corporated in social responsibility (3.5.).
Business idea and values
The business idea of Tapiola, owned by the policy- ceed together in accordance with the customers’
holders, is to provide its customers with beneﬁts beneﬁt, and Tapiola and its customers succeed
and sustainable solutions for well-being and suc- together in the spirit of mutuality, when things are
cess. The values deﬁne how the group of companies managed correctly.
implements its business idea. Our four values – the
customers’ beneﬁt, succeeding together, entrepre- Entrepreneurship
neurship and ethical operation – are closely linked
Entrepreneurship is the value of innovative develop-
together. Mutual values provide a solid foundation
ment. It means being active and inventive. People
for the Group’s strategic goals and success factors.
and communities need both of these characteristics
Customers’ beneﬁt to manage the constantly changing operating
environment. Entrepreneurship is typically charac-
Customers’ beneﬁt is Tapiola’s primary value, terised by strong commitment, capacity to react to
because Tapiola is owned by its customers. All changes in the operating environment and ability to
customers are equal as owners. The owners are operate in different environments. It also involves
committed to Tapiola to satisfy their need for the ability to ﬁnd out about matters and understand
ﬁnancial security, not to wield power or aim for how changes may inﬂuence one’s own operation.
proﬁt. This way ownership and customers’ beneﬁt
unite. In a community that emphasises entrepreneurship,
the feeling of mutual responsibility is strong, and
The customers’ beneﬁt includes safe, long-term everyone is concerned about the customers and
overall affordability, responsible operation and their needs.
individual service. We are actively looking for
solutions to meet the customers’ new, often individ- Ethical operation
Being ethical means knowing the difference be-
Succeeding together tween the right to do and the right thing to do.
Ethical values express the people’s education,
Succeeding together is the value of cooperation and culture and desire to commit themselves as mem-
mutual feedback. It includes the ideas of partner- bers of the community, as well as willingness to take
ship and care. Mutuality and cooperation also other people’s well-being into account. This idea is
involve appreciating good individual performance. reﬂected in the sentence: “Treat your customers and
All employees must be given the opportunity to use colleagues like you wish to be treated yourself.”
their best skills to achieve our goals and to get
support from superiors and colleagues when neces- In everyday life, ethical behaviour involves being
sary. reliable, fair, open, genuine, honest and reasonable.
An ethical company knows its responsibility and
Succeeding together is a concept that can be viewed takes care to keep its reputation untarnished. It
from many angles. Tapiola’s companies and units adheres to laws, rules, guidelines and agreements.
succeed by joining forces and avoiding competition It keeps promises and meets obligations.
between each other, Tapiola and its partners suc-
Distribution and organisation of
social responsibility in Tapiola Group
Supervisory boards and cooperation committee • The Local Operations Management Group introduces
• The supervisory board monitors ﬁnancial responsibil- the principles of social responsibility in customer
ity by handling the ﬁnancial statements and giving service and reports on the development.
a statement on them to the general meeting. At • The Personnel Affairs Management Group deﬁnes
Tapiola Pension it conﬁrms the principles of Tapiola personnel management policies at Group level,
deﬁnes and updates personnel policy and monitors
Pension’s funds investment plan.
the development of personnel responsibility using
• The cooperation committee of the supervisory the selected indicators. It performs atmosphere
boards monitors the Group’s ﬁnancial and operative surveys and initiates development work based on
the survey results. It is also responsible for equality
responsibility between the supervisory board meet-
ings and meets the auditors once a year.
• The Managing Directors’ meeting is also the Corpo-
• The supervising activity of the cooperation commit- rate Security Management Group. It conﬁrms the
tee’s audit committee includes monitoring solvency, annual social responsibility plan and implements
risk management and compliance with laws and parts of it in each company’s annual plan.
regulations; monitoring ﬁnancial reporting; monitor-
ing the work and independence of auditors; and Business units
assessing internal auditing, internal supervision and • Each insurance company, the bank and the ﬁnancial
risk management. service companies answer for their operation to the
supervisory authorities: their ﬁnancial responsibility,
Boards of Directors (3.4.)
their own responsibility for the personnel and
• conﬁrm the strategic plan and operating principles, customers and also their attitude to environmental
including the principles of social responsibility issues.
• conﬁrm the investment and risk management plan • The Real Estate Unit creates, monitors and updates
and the annual operation plan and budget and its own environmental policy and operating pro-
supervise their implementation gramme and participates in interaction with environ-
• develop services for the owner-customers mental networks in the real estate sector.
• approve the Social Responsibility Report. • The Social Relations Unit creates and maintains
interaction particularly with external stakeholders,
Auditors leads the procedure of the social responsibility
process, edits the report and prepares matters for
• ensure that the ﬁnancial key ﬁgures in the ﬁnancial
the Board of Directors.
statements comply with the laws and requirements
• The Risk Management Unit is an expert in environ-
• ensure the reliability of reporting.
mental operation and provides environmental risk
Internal audit management services and guidance to the custom-
• supports managers in their monitoring duties and
provides the management with information and • The Market Research Team in the Marketing Servic-
proposals for improving the efﬁciency of supervision es Unit organises monitoring using external research
services, utilises the research results to follow the
• participates in the development of the reporting achievement of goals and monitors the development
process. of the Tapiola Group’s reputation and image and the
people’s awareness of the company from
Management Groups the angle of social responsibility, for example.
• The company management groups decide on
• The Personnel Services Unit plans, coordinates and
operational responsibilities and plan the framework
implements the Group’s personnel policy and
of ﬁnancial responsibility for the Board of Directors
related services, e.g., training services and the Vire
to decide on.
• The Customer Segment Management Groups
• Communications Services is responsible for commu-
introduce the principles of social responsibility in
nications, e.g., by planning and carrying out internal
the structures of customer service and product
development and report on the development. and external communication.
Social Responsibility Committee Other executive teams and committees
• prepares and updates the principles of social • The Vire Executive Team monitors the personnel’s
responsibility to be dealt with by the Board of well-being at work, decides on the annual Vire
Directors themes and monitors the results of the Vire pro-
• prepares topics to be proposed for the Group’s
annual plans • TAOS, the Tapiola Participation Committee, discuss-
es plans concerning the personnel, receives informa-
• prepares and updates annual goals and indicators
tion on the Group’s ﬁnancial situation and comments
• initiates and maintains discussion on values and on the social responsibility principles and reporting.
• Tapiola’s Environmental Team deﬁnes the environ-
• organises the monitoring of results and participates mental strategy and programmes, monitors their
in preparing the report. implementation, informs about environmental issues
and organises environmental management in the
• The Sponsoring Team deﬁnes and updates the
principles of sponsoring, decides on cooperation
agreements and projects to be launched and
monitors the implementation of agreements.
SCENARIOS AND OPERATING ENVIRONMENT
Business idea Basis of uniqueness Values
Tapiola provides its customers with Responsibility to customers Customers’ benefit
benefits and sustainable solutions Succeeding together
for well-being and success. Vision Entrepreneurship
We take care of our customers so actively Ethical operation
and competently that they recommend
us to others.
Strategic selections that generate superiority
Production of comprehensive Expanding service solutions
services appreciated by customers by networking
Goal areas Economy and
Customer Service processes Personnel market position
Services Service quality Competence
Benefits Efficiency Work community
coverage and brand
Implementation: processes and operative risks
The strategic architecture steers the practical choices and implementation. The opinion on the present and future
operating environment and competition is the foundation for forming the core of the strategy emphasising the customer
dimension of mutuality – that is, the business idea, values, basis of uniqueness and vision. Strategic choices, i.e., the areas
of operation where we aim to create superior competitive advantage, are deﬁned for the three-year strategic period.
The strategic architecture can be compressed into four goal areas: customer, personnel, service process and economy and market
position angle. Each of these has two target areas with respective target levels. The deﬁnitions aiming to reduce strategic risks
are included in the strategy architecture. The strategic architecture is the basis for the practical planning, operation and risk
management expressed in the balanced scorecard frame.
Development of Quality
Is Based on Self-Evaluation (3.20.)
A central element in Tapiola’s management model is con- reform of personnel indicators. Results in both areas can
tinuous development of the quality of operation. This is be expected this year.
carried out by annual self-evaluations based on the evalu-
ation criteria of the European quality award EFQM. Tapi- At the turn of the year 2005–2006, Tapiola performed a
ola General won the Finnish Quality Award in 2000 in social responsibility self-evaluation in accordance with
the service company category. In 2005, the areas Tapiola the EFQM model. The report on the project was com-
General chose to develop included, for example, mod- pleted in March 2006.
elling and utilisation of a long-term personnel plan and
Legality and Compliance
with Agreements (3.14.)
Managing directors steer their companies in accordance We follow instructions that aim at good practices, and
with the law and the instructions and orders issued by we adhere to agreements. The Finnish Insurance Com-
the Board of Directors. The management and the superi- plaints Board is a body of the voluntary consumer pro-
ors are responsible for the results and appropriateness of tection organisation in insurance business. We use its
operation in their respective performance areas. The Le- recommendations as a guideline when we develop our
gal Services Unit supervises legality in the Tapiola Group, own guidelines for claims handling. We monitor the per-
and the lawyers in the various units are also responsible centage of cases where the Board has changed a deci-
for supervising legality. The secretaries of the Boards of sion in favour of the customer. This is one of our qual-
Directors control the legality of decisions in the respec- ity indicators in claims handling. If the percentage goes
tive companies and ensure that the Boards of Directors up unexpectedly we investigate the reason and take the
handle matters in accordance with laws and regulations. necessary corrective action.
Internal audit evaluates the implementation of internal
control and risk management in the organisation and
coordinates its work in cooperation with the auditors.
Tapiola at the Finnish Insurance Complaints Board
More information on internal control and audit is avail- from 2001 to 2005; percentages of changed claims
able in Finnish at www.tapiola.fi > Tapiola-ryhmä> settlements
Tapiola yrityksenä> Hallintomalli> Sisäinen valvonta, Company 2001 2002 2003 2004 2005
Riskienhallinta ja Sisäinen tarkastus.
POHJOLA 32 24 28 26 25
At Tapiola Bank, the lawyer appointed as the compliance SAMPO-IF 37 25 38 34 28
ofﬁcer is responsible for keeping in contact with the au- TAPIOLA 24 39 22 24 26
thorities and ensuring that the bank obeys the law and Total 36 31 32 33 30
follows instructions. The compliance ofﬁcer is also respon-
Our objective at Tapiola is to keep the percentage of changed
sible for ensuring that the bank personnel’s instructions
claims settlements below average. This monitoring period in-
comply with the law and regulations and the bank manag-
cluded one year when this goal was not achieved. In 2002,
ers develop instructions and inform the personnel about the number of complaints and the percentage of changed set-
legislation and ofﬁcial regulations relating to their respec- tlements rose, but after an adjustment following training and
tive areas of responsibility. The fund management and as- consulting the situation improved in the following year, being
set management companies also have compliance ofﬁcers. even better than before.
Responsibility Is Essential
in Our Field of Business
Insurance and ﬁnancial business generates stability and on legal incompetence and insiders are available to the
safety in society, enabling ﬁnancial activity by providing personnel on the internal information network. The con-
reasonable means for risk protection. Basic banking serv- tent and application of the instructions are introduced
ices are a necessity in modern society. to new employees during orientation. The employees are
informed regularly about guidelines.
In Finland, insurance companies play an important role in
society by providing statutory earnings-related pension in-
surance, employer’s liability insurance and motor liability We bear our responsibility
insurance. More than 60 per cent of the premium income for the future
in the entire insurance business comes from statutory in-
surance. Pension insurance companies provide rehabili- Active participation in the development of our own ﬁelds
tation services and services relating to well-being at work of business and industrial life in general, as well as in the
to reduce disability pension costs and prevent premature supervision of the interests of mutuality, constitutes part
retiring. Insurance companies cooperate with various au- of Tapiola’s responsibility for the future. We also partici-
thorities to prevent injuries, ﬁres and other accidents and pate in the general discussion on social issues.
crime. Insurance companies have many alternatives for
providing services for the aging population. Tapiola is an active member (3.15.) in various organisations
in the industry, including the Federation of Finnish In-
In addition, insurance companies answer to the need surance Companies and its committees and line-speciﬁc
to complement social security voluntarily. More than organisations, the Finnish Bankers’ Association, the Finn-
500,000 Finns have complemented their earnings-re- ish Association of Mutual Funds, the Finnish Centre for
lated pension insurance with a voluntary pension in- Pensions ETK and the Finnish Pension Alliance TELA. In
surance policy. Currently there is a discussion going on addition, we are involved as members in various business
concerning the need for care insurance to complement life organisations, like the Finnish Business and Policy
sickness insurance. Voluntary life insurance provides se- Forum EVA, the Confederation of Finnish Industries EK,
curity for the future of the policyholder’s family in case the Central Chamber of Commerce and regional cham-
of the policyholder’s death. Voluntary non-life insurances bers of commerce, as well as the Finnish Direct Marketing
are also important for society. Correctly measured insur- Association and the Association of Finnish Advertisers.
ance cover is necessary for individuals in their everyday We are also involved in international organisations, such
life as well as for the risk-taking ability and development as AISAM, ICMIF and ACME, which are international or-
of business life. ganisations of mutual insurance companies, and the In-
ternational Chamber of Commerce ICC.
We adhere to the rules Tapiola provides expert services for dozens of various
organisations, and Tapiola’s employees are involved in
The Tapiola Group wants to be an active and responsible many organisations relating to profession, counselling
member of Finnish society. Obeying the law and comply- and free time activities.
ing with agreements are the foundation for everything we
do. We follow closely the development of legislation and
introduce our own opinions in the process, whenever pos-
sible. We use our internal information network to keep
the organisation up to date about changes in ﬁnancial
legislation. Stopping black economy and related crime
is an essential part of our work.
In addition to laws, agreements and good insurance,
banking and business practice, insurance and banking
secrecy are important obligations that apply to the entire
personnel. Written instructions for secrecy, safety and
information security policy with instructions, guidelines
for insurance and claims handling, as well as regulations
Policies and principles
In addition to the policies
Ecological and principles listed
Financial responsibility Social responsibility
responsibility here, there are various
Risk management policy Personnel policy Environmental written instructions, e.g.,
strategy instructions on preventing
money laundering, as well
Investment plans Safety policy Environmental policy as regulations on secrecy,
legal incompetence and
Credit policy Communications policy Environmental accepting representation
programmes and gifts. (S02)
Purchasing policy Consumer policy
Selection of responsibility; customer and risk Principles of claims management
Reinsurance instructions Principles of social responsibility
Principles of sponsoring
Recognitions to Tapiola’s personnel
In 2005, many employees of Tapiola received public recognition for
their social achievements.
Corporate Brand Manager Kaisu Holopainen was selected the chairper-
son of the Board of the Finnish Direct Marketing Association SSML as
of 1 April 2005. She has been a member of the Board for 8 years.
On 21 April 2005, The Tampere Chamber of Commerce & Industry
awarded the Executives of the Year for the 11th time. Martti Silven-
noinen, Regional Manager in the Tapiola Group, was awarded the title
in the service business category. In addition to efﬁcient performance,
his merits include increasing the number of jobs in Tampere, after
the Group decided to transfer some of its head ofﬁce operations to
Martti Silvennoinen receives the Executive
The Rotary Club of Tapiola – Tapiola being also the name of a district of the Year diploma, presented by Tommi
of the City of Espoo – selected Tapiola’s President Asmo Kalpala as Rasila, the Managing Director of the Tam-
the most distinguished resident of Tapiola in 2005. His merits pere Chamber of Commerce & Industry.
include developing the business centre of Tapiola and increasing
the number of personnel in an economically healthy manner; his
organisation now provides some 1,600 jobs in the Tapiola area.
Development Manager Sanna-Mari Myllynen from Tapiola Pension was
selected to Veikkaus Oy’s ethical committee for 2005–2006.
We are aware of the effects of our operation Tapiola is a politically neutral group of companies, and
therefore we can operate naturally with all decision-mak-
The Tapiola Group participates in the distribution of busi- ers. We participate actively in public discussion on the
ness risk and enhancement of household ﬁnancial secu- development of statutory insurance systems, promotion
rity. Tapiola is an employer, investor, tax payer, builder, of responsible market economy and other social issues.
landlord and partner. We are aware of the effects of our The Tapiola Group wants to interact with the political par-
operation on society and our customers’ lives, and our ties, but this does not include supporting political par-
service development is based on this knowledge. For a ties ﬁnancially, for example (SO5). Tapiola has developed
discussion on our customers’ health and safety, please guidelines (SO3) for cooperation with political parties, and
see Customers. adherence to these principles is being monitored.
Mutuality in Practice
In a mutual company, the shareholders consist of poli- decided to investigate whether mutuality has any particu-
cyholders instead of investors. This company form gives lar signiﬁcance for the customers and how our custom-
the customers the right to inﬂuence activity within the ers’ ownership is realised in our operation. The Mutuality
company, and also the right to beneﬁt from the compa- Committee was established to investigate this and report
ny’s success. As the largest mutual group of insurance on the ﬁndings. The Committee’s work is part of the work
companies in Finland, Tapiola has adopted the role of of the regional advisory committees, and it is a new form
standard-bearer of mutuality. During this strategic period, of organised interaction between the management of Tapi-
Tapiola has focused on developing mutuality into a com- ola and the representatives of the customers.
petitive advantage. Therefore Tapiola’s Board of Directors
Customers evaluate the realisation of mutuality 7. Tapiola is committed to stable, long-term opera-
The three advisory committees in each of Tapiola’s
seven regions chose among themselves a representa- Some of these statements are also possible in other
tive to the Mutuality Committee. The Committee has company forms, but they are more common in mutual
seven members. The organising meeting was held in companies and have a greater signiﬁcance.
May, and Ulla-Maija Moisio, Master of Laws, was
All reference material available
appointed as the chairperson. She had already
participated in the experimental evaluation in 2004. After the organisation meeting, the members of the
The members comprise Reivo Järvenpää, Operations Committee studied the exhaustive reference material
Manager, Marja Malmstedt, Managing Director, Risto and prepared their evaluation. The members had
Palokangas, Director General of Regional Environment access to any information they believed to be useful
Centre, Sampsa Saralehto, Deputy Managing Director, in the work. The Committee held an evaluation
Matti Träskelin, Sales Director and Jorma Turunen, meeting at the end of August. The Committee’s sup-
Municipal Manager. port team and Personnel Director Sirpa Kaisanlahti,
who was invited to the meeting at the members’
The committee had a thorough discussion concerning
request, answered questions.
the entire ﬁeld of evaluation. The meeting identiﬁed
seven elements of mutuality to be evaluated: The committee conducted a comprehensive discus-
sion and prepared an evaluation statement. The
1. The owner-customers and their representatives
advisory committees discussed it in their autumn
decide who runs Tapiola and in which direction.
meetings, and in November it was introduced to the
2. The advisory committees act as regional and Group’s Boards of Directors and the supervisory
industry-speciﬁc channels of inﬂuence. boards. Then an abstract of the statement was
published on Tapiola’s website.
3. The owner-customers have the right to proﬁt from
the company’s success. The statement is available at
4. As a mutual company, Tapiola increases competi- www.tapiola.ﬁ > Brieﬂy in
tion. English> Tapiola Group>
Business Idea and Values>
5. The development of products and services is Customers Evaluate Mutuality.
guided by customer needs.
6. The personnel are committed to Tapiola’s values.
The most important value is the customers’ bene-
ﬁt, which is based on the principles of mutuality. Ulla-Maija Moisio
Interaction with Stakeholders
In addition to the owner-customers, the Tapiola Group stakeholders. According to this guidance, the objective is
is involved in versatile ordained cooperation with other interactivity, which means strong interaction with all the
stakeholders (3.9.). The advantages gained from this co- stakeholders. The various parts of the organisation have
operation beneﬁt Tapiola’s customers. a varying number of stakeholders. Any contacts resulting
from Tapiola’s representations or membership fees paid
In January 2005, the Tapiola Group decided on guidance by Tapiola have been documented.
that deﬁnes the Group’s relations with society and the
Review on Cooperation
with the Stakeholders in 2005
Tapiola wants to be an appreciated and reliable company Networks provide added value for
and partner. Cooperation is necessary for bringing added customers
value to everyday customer service. Interaction with vari-
ous representatives of society and industrial and com- The objective of network cooperation is to provide beneﬁt
mercial life involves objectives relating to the supervision for mutual customers and reinforce Tapiola’s performance.
of interests. Reciprocal interaction with local organisa- We select our partners from companies that are impor-
tions supports Tapiola’s possibilities to provide its cus- tant in their own industry and have a value base close to
tomers with beneﬁts and sustainable solutions for well- our own. Tapiola is involved in network cooperation with
being and success. the S group, Finnish Loss Survey SVT Ltd, the Central
Union of Agricultural Producers and Forest Owners (MTK),
the ProAgria Group, the Mortgage Society of Finland, and
Agents represent Tapiola in customer the real estate agent SKV.
Successful local services
Tapiola’s service network comprises 164 service points. The Finnish Franchising
More than half of these are run by entrepreneurs who have Association arranged a
a contractual relationship with Tapiola. The agents are contest, and all the 25
important stakeholders with regard to customer service member chains participat-
and sales. Authorised agents are called insurance repre- ed. Tapiola’s local service
sentatives. They have achieved their position by complet- chain took the third prize in
ing successfully the sales and product training provided the category Franchising
by Tapiola. Insurance representatives and agents work Chain of the Year. The
independently, without an employment relationship with number of service points
Tapiola. Agent relationships are based on an agreement and the increased turnover
contributed to this. In
that deﬁnes the agent’s obligations, rights and qualiﬁca-
addition, Tapiola has
tions. The agents are bound by professional secrecy even followed the Association’s ethical rules and developed
when they no longer work as agents. Tapiola has vicari- the chain in close cooperation with the entrepreneurs.
ous liability for its agents. Tapiola’s local service chain is Finland’s largest
insurance and ﬁnancial business franchising chain.
Customer service complies with Tapiola’s values and
operation model. Tapiola is responsible for training the The Finnish Franchising Association gives its
agents in these. To reinforce information, the agents have member chains the opportunity to award one
entrepreneur in the chain with the Franny prize. In
an intranet website of their own. The Agency Advisory
2005, the Franny award (pictured above) went to
Committee is the channel for organised interaction. The
Tapiola’s most successful local service provider, HVK
Local Service Cooperation Group was established to de- team Oy from Lappeenranta.
velop this vigorously growing service channel.
The awards were presented by Minister of Trade and
In 2005, the agents accounted for 29% of new sales, and Industry Mauri Pekkarinen at the Franchising party
the share of car retailers operating as agents was 32%. in Helsinki in March.
The cooperation between Tapiola and the S Group was Selection of subcontractors is based
launched in the spring of 1999, when the members of on values
the S Group began to receive bonus for Tapiola’s insur-
ances. About one fourth of the S Group’s customers are We select our subcontractors from companies whose val-
also Tapiola’s customers, and one third of Tapiola’s cus- ues and principles are parallel with ours. For example,
tomers have the S bonus card. our purchasing policy requires that the goods and serv-
ices we purchase are of adequate quality and promote
Finnish Loss Survey SVT Ltd is an expert company owned sustainable development.
jointly by Tapiola and Fennia. It has an important role in
customer service relating to motor vehicle accidents. SVT
has the largest loss survey organisation in Finland with 70 Interaction with society
loss adjusters and 23 permanent loss survey stations, as
well as loss survey points that are open on certain days, We respect political neutrality, and open dialogue with all
located in different parts of Finland. SVT’s loss adjusters political parties is important for us. Interaction with the
inform the customers about claims handling and calcu- political decision makers is usually case-speciﬁc.
late the vehicle’s repair costs. At the same time the cus-
tomer may complete a damage report and turn in other Tapiola’s relationships with the authorities function well.
documents to be sent to Tapiola for claims settlement. We aim to affect legislation through the Federation of
SVT’s operation is based on the ISO 9001 (2000) qual- Finnish Insurance Companies and its member organisa-
ity management standards. tions, the Finnish Pension Alliance TELA and the Finn-
ish Centre for Pensions ETK. In matters concerning mu-
Tapiola and the real estate agency SKV initiated their tuality we aim to inﬂuence the decision-makers directly
cooperation in May 2000. SKV has more than 80 ofﬁc- and to inform them.
es around Finland. Tapiola’s owner-customers get a dis-
count on SKV’s commission when they are selling their Tapiola’s own labour protection and rescue organisations
own permanent residence. as well as the risk management experts cooperate with
the national and local authorities.
The cooperation agreement signed with the Mortgage
Society of Finland in 2001 grants Tapiola’s owner-cus- As regards relationships with the media, Tapiola has es-
tomers discounts on their housing loans. tablished its position as the best insurance company in
Finland. We have the second best general image among
The cooperation agreement with the Central Union of Ag- ﬁnancial service companies. This evaluation is based on
ricultural Producers and Forest Owners (MTK) involves Marketing Radar’s surveys, which we monitor regularly.
developing the Tapiola Group’s products and services and
marketing them to the members. The agreement includes Cooperation with educational institutions and universi-
membership beneﬁt products and membership discounts ties includes company visits relating to career counsel-
as well as safety counselling. In 2004, an agricultural ling, lectures on insurance and ﬁnancing, and support
safety campaign was launched for 2004–2006. Fire safety and materials for students working on their ﬁnal theses.
at farms was the ﬁrst theme of the campaign. We also provide summer jobs for students.
The objective of the ProAgria Group is to reform agricul-
tural counselling and to be a strong developer and network Cooperation with commercial and
former locally, regionally, nationally and internationally. industrial life
The cooperation with ProAgria includes arranging versa-
tile quality training for farms and awarding the farm and Tapiola, together with its competitors, is involved in vari-
young farmer of the year. More than 400 farms enjoy the ous organisations promoting the interests of the banking
quality bonus for audited farms. and insurance sector.
Tapiola’s cooperation with Agropolis Oy involves develop- We have arranged Entrepreneurs’ Evening School lectures
ing a solution for the management of the environmental since 1998, in accordance with a cooperation agreement
load resulting from horse races and promoting the well- with an entrepreneur organisation. There are about twenty
being of racehorses. Tapiola’s role in the project is to pro- events around the country each year. Tapiola also sup-
vide expert assistance for investigation and management ports women entrepreneurs by sponsoring the Kultainen
of environmental risks and, in the future, for prevention Oras (“Golden Sprout”) award, granted every other year.
of accidents. Other partners in the project include Agri- The Taito (”skill”) award is granted in alternate years
food Research Finland MTT, Suomen Hippos ry and the with the Golden Sprout, in cooperation with the Finnish
Equestrian Federation of Finland. Crafts Organisation.
The Central Chamber of Commerce and the chamber of culture (Albert Edelfeldt exhibition at the Ateneum Art
commerce organisation are important partners for us. In Museum and a valuable violin for Tapiola Sinfonietta) and,
September we participated in the Chamber of Commerce to some extent, also exercise and sports, mainly the free
Forum 2005 event under the theme “Proactive personal time activities of the personnel’s children.
risk management is an investment in the company’s fu-
ture”. We are also involved in other educational coopera- At the end of 2005, Tapiola signed an agreement with
tion with regional chambers of commerce. the Finnish Red Cross to support its volunteer friend visi-
tor service during the next three years. The position as
the main partner in the friend visitor service is ﬁnancial-
Deﬁnitions for consumer cooperation ly and operationally the most important social respon-
sibility project that the Tapiola Group has ever spon-
As regards cooperation with the consumer authorities sored. The objective of the cooperation is to emphasise
and other inﬂuential parties, the Tapiola Group has up- Tapiola’s mutuality and social responsibility and to en-
to-date, written deﬁnitions and objectives for consumer courage Tapiola’s large customer base to become volun-
policy as the guideline for the development of its opera- teer friends to lonely elderly people in particular.
tion. The deﬁnitions focus on sustainable and ethically
acceptable procedures, availability and quality of services
and active interaction with the stakeholders.
Tapiola’s Consumer Forum is a discussion forum for Tapi-
ola’s management and inﬂuential consumers. It has estab-
lished its position as part of the Group’s interaction with
the stakeholders. The objective of the Consumer Forum
is to introduce Tapiola’s management, administration and
experts to inﬂuential consumers, and also to give the com-
pany management the opportunity to hear the opinions
of inﬂuential consumers and representatives of admin-
istration on problems and developments concerning the
consumers. In 2005, Tapiola’s 10th Consumer Forum dis-
cussed the problems associated with insurance and bank-
ing services, based on research and practical experience.
Interaction with inﬂuential consumers has affected the
development of insurance terms and conditions, proce-
dures and, for example, banking services. Justifying the
decisions is a permanent problem in insurance and ﬁ-
nancing. Many joint and individual development projects
have tried to ﬁnd solutions to this problem, but there is
still a lot of work to do in this area. Secretary General Kristiina Kumpula and Communications
Director Hannu Laiho (left) from the Finnish Red Cross and Director
Arto Jurttila and Corporate Brand Manager Kaisu Holopainen from
Tapiola signed the agreement on the Finnish Red Cross volunteer
Sponsoring and donations for socially friend visitor service.
Sponsoring at Tapiola aims to promote Tapiola’s com-
pany image and generate added value and beneﬁts for In 2005, the Tapiola Group used about EUR 300,000
the customers. When we select objects and partners, we for sponsoring and donations. (EC10)
consider values and bear social responsibility.
For more information on the principles of sponsoring,
Donations from the Board of Director’s available funds please see www.tapiola.ﬁ
are made annually for the public good, primarily for the > Brieﬂy in English> Co-operation> Sponsoring.
good of children, youth, disabled war veterans and other
disabled persons and for supporting medical science and
damage prevention, for example.
In 2005, Tapiola has supported road safety ( e.g., the
House of Safety in Vantaa), youth work (by sponsoring
the Finnish Red Cross’s safe house for young people),
Tapiola wishes to be a good neighbour and interact well possible. The Tapiola Group encourages its personnel to
with the neighbouring communities. The neighbouring participate in social activity and to inﬂuence their local
communities include, for example, the municipalities environment.
housing Tapiola’s ofﬁces, inhabitants of the neighbouring
regions, provincial and local decision-makers and other
inﬂuential people, provincial and local newspapers and Local impacts of Tapiola’s business
other members of the press, organisations and educa-
tional establishments. The Tapiola service organisation has been divided into
seven local units, which are delimited in the text below
Tapiola recognises its role as an inﬂuential local party. the local impact table. We carefully monitor development
Tapiola is a tax-payer, an employer, a balancer of busi- of our local key ﬁgures, and for the past twenty years we
ness risks, a guarantor of the inhabitants’ ﬁnancial safety have been able to publish our annual result, for exam-
and also a landlord at times. ple, based on the local ﬁgures. The key ﬁgures are writ-
ten down and monitored based on the local unit division.
Cooperation with the regional and local media is organ- Thus, we do not monitor provincial ﬁgures, for example.
ised. Publicity when, for example, communicating infor-
mation about the performance of Tapiola`s local units, or Tapiola’s business operations have many impacts on the
when opening a new ofﬁce, or in connection with some surrounding environment throughout Finland. We affect
other local event, will improve interaction with the sur- employment and purchasing power, which we can meas-
rounding environment and also better Tapiola’s local busi- ure by monitoring the salaries, excluding other personnel
ness opportunities. expenses, paid in a local unit. Well-being produced for
inhabitants and tax-payers can be measured using the
Tapiola’s local and regional ofﬁces take care of relations premiums earned and claims paid in a region. The item-
with their neighbours in different manners. Representa- isation does not include the impacts of the head ofﬁce
tives of Tapiola visit local educational establishments to operations on local business life in Espoo and Tampere
give lectures, or students visit the representatives at their and in the Kuopio Customer Service Centre. In the lo-
workplace. Safety evenings, trafﬁc safety campaigns and cal communities, we actively participate in responsible
similar activities are arranged in cooperation with the lo- interaction following the same values as in our national
cal authorities and the local department of the Finnish activity. We have not considered it necessary to draw up
Red Cross, etc. Lately, customer events have been ar- any separate local policies. (SO1)
ranged mainly around the themes of saving and invest-
ment; people are interested in these subjects and many The number of customers is an indicator of how many
need more information. lives and assets Tapiola secures in its areas of inﬂu-
ence. The indirect effects of security and operations
Representatives of Tapiola are actively involved in activi- with respect to corporate customers also touch the per-
ties of local Chambers of Commerce and Finnish associa- sonnel of the customer companies, but their share is
tions of entrepreneurs. Open days are arranged whenever not monitored.
Regional purchases of goods and services from local companies (€ 1,000)
PKS L-S S-S Poh K-S I-S P-S
256 193 206 93 164 142 177
Apartment services 256 268 234 80 184 190 237
Ofﬁce and other services 215 208 191 32 80 76 137
PR, advertising and other
marketing services 476 362 520 317 260 262 451
Total 1 203 1 031 1 151 522 688 670 1 002
Local inﬂuence in GRI reporting also includes a market was 30.2% in the Eastern Finland Region and 31.3%
share of at least 25% in a performance area. The share of in the Northern Finland Region. The share of 24.7% in
Tapiola in so-called vehicle registration statistics in 2005 South-Eastern Finland is also close to the limit.
Local impacts of Tapiola’s business in numbers
Number of Salaries and
Re- Premiums Claims paid Private Corporate
personnel Agents *) remunerations
gion (EUR 1,000) (EUR 1,000) 1) customers 2) customers 3)
(persons) (EUR 1,000)
PKS 138 460 6 346 651 457 106 236 155 797 3 977
L-S 93 508 5 810 224 345 59 895 116 865 2 288
S-S 99 544 6 489 261 330 58 417 132 259 2 797
Poh 56 291 2 998 132 725 33 651 69 434 1 350
K-S 94 328 5 298 209 148 50 703 98 596 2 284
I-S 84 491 5 782 200 770 52 956 107 557 2 566
P-S 93 552 7 099 228 665 75 397 126 391 3 337
PKS = The Greater Helsinki Area, including the Helsinki area and *) The number of agents here includes all who have signed
its surroundings. an agency agreement. The ﬁgure is not comparable to the
L-S = South-Western Finland, including the provinces of ﬁgures given in the report for 2004, because those ﬁgures
Satakunta and Finland Proper, the western parts of the included only personal agents.
province of Uusimaa and the entire province of Åland.
S-S = The Central Finland Region, including the provinces 1) The claims paid do not include pension-beneﬁt-type em-
of Birkaland, Häme Proper and Central Finland. ployee pension and life insurance claims paid.
Poh = The Ostrobothnia Region, including the provinces
of Ostrobothnia, Southern Ostrobothnia and Central 2) The private household customers include households, farms
Ostrobothnia. and entrepreneurs.
K-S = The South-Eastern Finland Region, including eastern
parts of the province of Uusimaa and the provinces 3) The corporate customers also include corporations. The
of Päijät-Häme, Kymenlaakso and Southern Karelia. number does not include corporate customers written under
I-S = The Eastern Finland Region, including the provinces major customer services.
of Southern and Central Savonia as well as the province
of Northern Karelia.
P-S = The Northern Finland Region, including the provinces
of Oulu and Lapland.
The share of banking services and fund savings has not surance and banking group Länsförsäkringar of Sweden.
been itemised. The Greater Helsinki Area, the Central In 2005, Gjensidige-Nor of Norway was also included.
Finland Region and the South-Western Finland Region However, in December 2005 the Norwegian Gjensidige
have included the most fund savings customers. Loans terminated the cooperation agreement due to increased
to and investments in the regions have not been itemised competition between Gjensidige and the Swedish Läns-
either. Support to local hobbies, cultural and organisa- försäkringar in Sweden and Norway.
tional activities has not been reported as of yet.
Cooperation with the international mutual company or-
Goods and service purchases by Tapiola from local com- ganisation AISAM as well ICMIF and the European divi-
panies also support the business life of each region. sion ACME aims at improving the business opportunities
of companies owned by their customers. Tapiola’s execu-
tives are included in the management and committees of
Global cooperation based on protect- AISAM and ACME. In cooperation with AISAM, we have
ing mutual interests actively strived to promote a directive proposition that
would have an impact on European mutual companies.
Insurance activity also includes division of risks with the The European corporate legislation regarding mutual com-
help of global reinsurance. Tapiola practices mutual co- panies would offer mutual insurance companies the same
operation within the Nordic countries in the Nordic Al- business opportunities as limited companies.
liance. In addition to Tapiola, the Alliance includes in-
Interaction with stakeholders
Stakeholder Method of interaction Monitoring system
(form, channels and documentation) (number and regularity)
Customers = owners Continuous interaction with customers and a Several thousand feedback items are received every year
feedback system. Annual customer and service through the customer feedback system; all of the feed-
environment studies. back is processed and saved. In 2005, as many as 5,000
feedback items were received via the Internet. Annually,
Advisory Committees for each region and sector, approximately 15 customer satisfaction and market
the Mutuality Committee and the Youth Forum are studies as well as approximately 30 studies on customer
established forms of interaction. groups are conducted.
The Advisory Boards offer plenty of feedback and sugges-
tions. In 2005, the Advisory Boards offered the Boards of
Directors 70 initiatives in order to improve the services
Good documentation exists for the various forms of interaction. Reports created based on this documentation
are reviewed in line with the agreed-upon principles.
Personnel Established interaction channels include the Each body makes decisions about meeting practices
TAOS (the Tapiola Participation Committee), the based on their schedules.
Equality Committee, the Labour Protection Com-
mittee and the Social Responsibility Committee. A work environment study, “Succeeding Together”, is
Participants of the personnel are also included in conducted every two or three years, and a motivation
the Supervisory Boards and Executive Teams of study “Status of the Team” annually. The results are
the various units. used in the development plans of the units.
Minutes are drawn up for all the meetings.
Agents, representatives, Established cooperative bodies include the Agency The Advisory Committees meet four times a year based
franchising entrepreneurs Advisory Committee and the Local Service on an established practice. Furthermore, the parties keep
Cooperation Group. Minutes are drawn up for the in touch in other ways as well.
meetings. Furthermore, regular interaction in The results of a biannual study are used to develop the
work-related issues is conducted in the various agency operations.
Cooperation partners Cooperation with the S Group is taken care of by The cooperation with the S Group is continuous and
in customer relations dedicated contact persons. practical.
Cooperation with the Finnish Loss Survey SVT Meetings with the SVT and Turva are held at regular
takes place at the management level. intervals.
Cooperation with Turva takes place through the The interaction is practical.
cooperative bodies and at the management level.
Minutes are drawn up for the meetings, and
memos for other negotiations.
Subcontractors, suppliers Cooperation is based on agreements. Negotiations The quality of products and services is continuously
are held whenever necessary. monitored.
Memos are drawn up for negotiations, and docu- The interaction is practical.
ments are drafted for all agreements made.
Competitors Tapiola, together with its competitors, is included Meetings are held regularly.
in organisations promoting the interests of the The actions of the competitors in the market are
banking and insurance sector. Minutes are drawn monitored and analysed in connection with strategic and
up for the meetings. annual planning.
Stakeholder Method of interaction Monitoring system
(form, channels and documentation) (number and regularity)
Authorities Interaction mostly occurs through organisations Interaction with the supervisory authorities is continuous
monitoring the interests of the sector, except for and regular. Other forms of interaction do not occur in
the supervisory authorities, with whom interac- any ordained manner. Background information is given
tion is direct. Furthermore, direct contacts are upon request.
made and statements given in some questions
regarding the preparation of legislation. Tapiola
also delivers background information to the
Social decision-makers Cooperation with political decision-makers is con- The interaction includes annual or case-to-case discus-
tinuous and mostly well established. The parties sions regarding underlying issues. However, most of
take care of documentation. the interaction takes place through the organisations
promoting the interests of the sector.
Other organisations: business Meetings are held and information is communi- Organised meetings with the labour market organisa-
and labour market organisa- cated with labour market organisations. Meetings tions take place at least once a year. Meetings with the
tions and NGOs are held with the labour unions that own a share labour unions take place at least twice a year. Coopera-
of the guarantee capital of Turva. Cooperation tion with business organisations based on agreements
with business organisations includes both coop- and other forms of established cooperation is continu-
eration based on agreements and other forms of ous.
established cooperation and exchange of informa- Cooperation with NGOs is either based on agreements,
tion. Forms of established interaction include the such as the cooperation with the Finnish Red Cross, or
Consumer Forum and the Entrepreneurs’ Evening arises from local needs.
School events. Minutes are drawn up for the meet-
ings and documents made for any agreements.
Media Seminars and press conferences regarding is- A Business Reporter Study is conducted once a year.
sues of topical interest are arranged whenever
necessary. Representatives of Tapiola meet with
reporters and editorial staff on a regular basis.
Neighbouring communities Normal interaction and communication of Customer service studies are conducted every year.
information take place with the neighbouring
communities. Open days and joint projects are
arranged whenever necessary.
Educational establishments We support persons writing theses and studies at Annually, 2–4 doctoral theses in which Tapiola has par-
and the scientiﬁc community several levels by preparing material, answering ticipated are completed as well as dozens of lower level
questionnaires or giving interviews. Representa- theses, and a number of lectures are given in universi-
tives of Tapiola visit universities as lecturers. We ties. Dozens of groups of schoolchildren and students
offer visits to neighbouring schools and summer visit the various Tapiola ofﬁces every year.
and timework for students.
Finnish and international sector Cooperation to promote mutual interests, Self-evaluation
organisations participation in committees and creation of best
The results of the interaction with stakeholders are evaluated by means of studies, in connection with planning processes and
during performance review discussions.
of Income 2004–2005
Tapiola Mutual has published a report on the social dis- the various stakeholders. At the same time, the distribu-
tribution of income in its annual report since 1977. The tion of income shows the impacts of the Tapiola Group
social distribution of income describes what items com- as a socially inﬂuential party. (EC7, EC8)
prise the total income and how they are divided between
EUR M Share, % EUR M Share, %
Income from insurance operations *) 1 893.5 73.3 2 051.5 74.0
Reinsurers’ share 15.8 0.6 5.9 0.2
Net investment income 671.6 26.0 708.9 25.6
Other returns and expenses 2.9 0.1 4.5 0.2
Total income 2 583.8 100.0 2 770.8 100.0
EUR M Share, % EUR M Share, %
Paid as claims to customers **) 1 884.2 72.9 2 064.3 74.5
Reinsurers’ share 26.1 1.0 19.2 3.0
Personnel ***) 82.5 3.2 83.9 3.0
Other operating expenses = suppliers 120.2 4.7 139.0 5.0
Society (direct and indirect taxes and public payments) 354.1 13.7 352.8 12.7
Tapiola Group 116.6 4.5 111.5 4.0
Distribution of income 2 583.8 100.0 2 770.8 100,0
*) Insurance premiums paid by policyholders minus public payments paid to the state.
**) Claims and pensions paid based on insurance contracts as well as the amount reserved for future claims and pensions.
***) Salary and remunerations paid to the personnel as well as social security costs.
Solvency of the Tapiola Group companies the beginning of the year
2005 2004 as percentage units
Non-life insurance solvency ratio 219.7 221.3 -1.6
Life insurance solvency capital, % of technical provisions 19.1 17.9 1.2
Pension insurance solvency margin, % of technical provisions 24.1 20.7 3.4
solvency margin, relative to solvency limit, times 2.6 2.8 -0.2
Banking solvency ratio 11.1 26.9 -15.8
Fund business solvency ratio 199.3 248.4 -49.1
Investment service business solvency ratio 102.1 95.8 6.3
Stable Development and
The result of the Tapiola Group for 2005 is the best Objectives and results 2005: Finances
yet. The good result is based especially on the invest-
Combined ratio for Tapiola General: Objective 106, actual ratio 104.1.
ment activity, which offers excellent proﬁt as a whole.
As indicators of ﬁnancial responsibility, we monitor the Number of bank customers (customers with bank accounts):
results, solvency and expense ratio of the companies as Objective 40,000, actual number 40,000.
well as the net investment income of Tapiola Pension, Objectives 2006: Finances
and discounts and beneﬁts to the customers offered by
the entire group. Combined ratio for Tapiola General: Objective 107.
Number of SME corporate customers: Objective +
No decisions or agreements have been made that would
have an impact on the operations as a whole. Changes
The monitored areas in the Tapiola scorecard are customers,
have not either occurred in the calculation unities moni- personnel, ﬁnances and market position as well as processes.
tored. (2.13.—2.15.) A review of the indirect ﬁnancial impacts of Above is a description of the objectives set and their realisa-
the operations is included in the local review, see Society. tion in 2005 as well as the objectives for 2006.
for Various Business Sectors
The year 2005 started out with expectations that the Distribution of Tapiola General premiums written
fairly good ﬁnancial outlook for Finland would continue. divided into regions in 2005
Various indicators for trust showed an increase in the
beginning of the year. Uncertainty about growth in ex-
ports had increased in the previous autumn. Export was
still expected to increase when compared to the previ- Northern Finland 15.8%
ous year, but it was anticipated that the slow-down in
Greater Helsinki Area 24.3%
the strengthening of the euro and in the world economy
would limit growth. The Tapiola economic cycle forecast
in January 2005 stated that if the euro continues to be Eastern Finland 12.7%
overrated when compared to the US dollar for a long
time, investments and gradually also industrial jobs will South-Western Finland 13.0%
move elsewhere. No fast relief for the unemployment South-Eastern Finland 12.8%
problem was in sight. The anticipated growth rates were
not seen as adequate to notably decrease the unemploy-
ment rate. On the other hand, it was stated that not even Central Finland 14.3%
fast economic growth would necessarily be able to create Ostrobothnia 7.2%
new jobs due to the global structural change underway:
the structural change will lead to new positioning of the
workforce and capital.
premiums. In the future, the situation will be corrected
Tapiola General’s market share continued to grow prof- with risk management actions and more speciﬁc analy-
itably, as it has continued to do uninterrupted for more ses of new customers.
than a decade now. Tapiola’s solvency remained at an ex-
cellent level. The claims ratio in some of the insurance The market share of Tapiola General increased to 18.2
categories is still too high, which means that the entire per cent from 17.5% the previous year. The market share
clientele will share the costs of damages by paying higher describes the company’s signiﬁcance in the market.
Together with the entire insurance sector, Tapiola is cur- Terveyspalvelut (“Health services”) Oy. For more infor-
rently adding new types of damage to the scope of ﬂood mation on the new products and services to customers,
insurance. Climate changes will lead to increased risk please see Customers.
of unexpected ﬂood damage, and customers need to be
able to prepare for this also by means of insurance. For Customers are showing rapidly increasing interest in pre-
additional information about the performance of Tapi- paring for self-initiated savings for their retirement and
ola General, please visit www.tapiola.ﬁ > Brieﬂy in Eng- other services promoting personal welfare. The services of
lish > Financial Data > Annual Report > Tapiola Group an insurance company could improve the possibilities of
Annual Report 2005 > Tapiola General. elderly persons to live on their own. In the future, Tapio-
la’s pure risk insurance policies will be even more clearly
directed towards supplementing social security.
For additional information about the performance
The tsunami that struck Southeast Asia in December of the Tapiola life insurance companies, please visit
2004 revealed how poorly Finns had arranged their life www.tapiola.ﬁ > Brieﬂy in English > Financial Data >
insurance coverage. Risk life insurance received plenty Annual Report > Tapiola Group Annual Report 2005 >
of attention in the media, and sales of pure risk insur- Tapiola Life.
ance increased in the entire sector by 24% when com-
pared to the previous year.
Employee pension insurance
At the beginning of 2005, a pension reform entered into
Distribution of Tapiola Life premiums written divided
force with the aim of encouraging Finns to remain lon-
into regions in 2005
ger in working life. This would reduce the pressure of
increasing pension expenditure. Some ﬁgures already
indicate that the reform objectives are being achieved.
Northern Finland 17.6%
Many other development projects are also underway. The
Greater Helsinki Area 22.9% most important one for Tapiola Pension is a signiﬁcant
increase in the amount of loading proﬁt to be refunded
to customers, since the company is the most cost-effec-
Eastern Finland 12.8% tive pension insurance company in Finland.
South-Western Finland 12.5%
South-Eastern Finland 11.1% Distribution of Tapiola Pension premiums written
divided into regions in 2005
Central Finland 14.7%
Ostrobothnia 8.4% Northern Finland 9.3%
Eastern Finland 9.1%
The solvency of the Tapiola life insurance companies was
better than ever before, and therefore the companies were
Greater Helsinki Area 40.8%
able to offer customers higher no-claims bonuses than
South-Eastern Finland 10.1%
competitors. The market share of premium income was
6.3% compared to 6.9% the previous year. However, in
the pure risk insurance market, which is one of the focal Ostrobothnia 6.4%
areas, the market share of premium income increased
to 21.3%, showing growth of 0.2 percentage unit. The South-Western Finland 11.0%
Central Finland 13.4%
market share of savings accrued was 8.3% compared to
8.7% the previous year.
Tapiola Life launched new products for the needs of the
owner-customers. The most notable were severe sick- Tapiola Pension reached a higher market share in sales
ness insurance, group pension insurance for rewarding of new pensions than the insurance portfolio premiums
key personnel of the customer companies and employ- written. The market share increased to 15.8 per cent
ees’ treatment security to complement the occupation- from 15.4 per cent the previous year. The company was
al health care of the customer companies in the Great- not as successful in the competition for pension insur-
er Helsinki Area, developed in cooperation with Diacor ance transfers.
The pension reform caused a backlog in the operations in Later on in the year, the fund selection was expanded
the beginning of the year, but the situation has stabilised. with a special fund investing in real estate and a ﬁxed-
At the turn of 2005 and 2006, joint pension calculation income fund investing in corporate loans. For addition-
and payment systems with Etera Mutual Pension Insur- al information about the performance of Tapiola Fund
ance Company were taken into use. This IT cooperation Management Company Ltd, please visit www.tapiola.ﬁ
has notable operational and ﬁnancial impacts, and it will > Brieﬂy in English > Financial Data > Annual Report >
be continued despite the fact that Etera will become a Tapiola Group Annual Report 2005 > Tapiola Fund Man-
competitor at the turn of the year. For additional infor- agement Company Ltd.
mation about the performance of Tapiola Pension, please
visit www.tapiola.ﬁ > Brieﬂy in English > Financial Data
> Annual Report > Tapiola Group Annual Report 2005 Asset management
> Tapiola Pension.
Tapiola Asset Management Ltd manages the security in-
vestments of Tapiola General and Tapiola Life as well as
Banking the funds of Tapiola Fund Management Company. The
company also offers its services to the customers of the
Tapiola’s banking operations are a part of the Group’s Group. The cornerstone of the operations is a solid risk-
comprehensive service to private household customers. corrected return on the assets under management in all
As expected and planned, the result still showed losses. market conditions while avoiding any unnecessary risk
During its two years of operation, Tapiola Bank has gath- of losing capital. The essential operating methods in in-
ered 50,000 customers. Early in the year the bank ac- vestment activity are an analytical approach, long-term
quired a majority holding in Tapiola Fund Management operations and active asset management.
Company Ltd by acquiring 70 per cent of the shares of
the company. In 2005, the assets managed grew by almost 18% and
stood at about EUR 4.6 billion at the end of the year. The
In 2005, the company has tried to the direct the attention asset management company is one of the six largest Finn-
of the press and inﬂuential consumers to the total prices ish asset management companies. This year, the compa-
of banking and ﬁnancing services instead of allowing the ny will invest in improving and speeding up reporting to
marketing of single products to lead them astray. The best customers as well as further strengthening management
parts of Tapiola Bank’s services include interest rates in of investment risks. For additional information about the
line with the daily balance and banking services, cards and performance of Tapiola Asset Management Ltd, please
web services offered free of charge to the owner-custom- visit www.tapiola.ﬁ > Brieﬂy in English >Financial Data
ers. For additional information about the performance of > Annual Report > Tapiola Group Annual Report 2005 >
Tapiola Bank Ltd, please visit www.tapiola.ﬁ > Brieﬂy in Tapiola Asset Management Ltd.
English > Financial Data > Annual Report > Tapiola Group
Annual Report 2005 >Tapiola Bank Ltd.
Tapiola Group turnover 2000 – 2005 (EC1)
Saving in mutual funds EUR m
The year 2005 was the mutual fund
company’s ﬁfth year of operation. Fund
capital increased by 33%, exceeding 2000
the limit of one thousand million eu-
ros shortly after the turn of the year.
The company is the eighth largest of
the 24 Finnish mutual fund compa- 1000
nies. During the year, the number of
mutual fund unit owners increased by
48 per cent. Independent evaluations 0
of the funds have been positive. For 2000 2001 2002 2003 2004 2005
example, the mutual funds managed Tapiola Bank 4.2 5.1
by the company were included in the Tapiola Asset Management 2.0 1.8 1.7 1.9 3.0
top three in the comparison of Finn- Tapiola Fund Management 0.9 1.6 2.1 3.1 4.4
ish fund management companies in Tapiola Corporate Life 94.3 95.9 94.1 85.3 89.4 109.2
the mutual fund guide published by Tapiola General 286.2 249.5 227.9 265.2 263.3 272.3
Arvopaperi magazine. This was due to Tapiola Life 550.5 530.5 528.8 622.3 668.3 725.4
the good return to risk ratio. Tapiola Pension 1135.3 1178.3 1111.9 1356.2 1369.4 1477.4
Secure Investing of Assets Means
Responsibility towards Customers
The idea with insurance is that policyholders with the ments. An independent and extensive in-house analysis of
same risk pay their insurance premiums into a joint “cash investment targets is an important part of the investment
register” from where claims will be paid to all policyhold- process. When making investment decisions, we strive to
ers incurring damage. Those assets that are not needed avoid investments that would contradict our values.
for immediate payment of claims will be securely and
proﬁtably invested in accordance with the Insurance Tapiola carries responsibility for the people and commu-
Companies Act. nities in which the company operates. Due to the nature
of the insurance business, the ﬁnancial responsibility of
Tapiola General and Tapiola Life purchase services re- an insurance company is very close to this social respon-
lated to securities portfolio management, carrying out of sibility. We follow these principles also in the guidance of
investment activities and support services for investment our owners. We support Finnish business by, for example,
activities from Tapiola Asset Management Ltd. The asset participating in ﬁnancing the growth of companies.
management company operates in line with the invest-
ment plans of Tapiola General and Tapiola Life. Tapiola In the companies we own, we work mainly through an-
Pension has a separate investment organisation and in- nual general meetings. By preparing for the meetings
vestment plan. we ensure that a good board of directors is chosen, for
example, and make sure that the company operates in a
The investment activities of Tapiola aim at achieving a responsible manner in line with the interests of our share-
high and stable return in the long term under all condi- holders. Participation in shareholders’ meetings takes
tions while avoiding excessive risk of losing capital. This place primarily in Finland and in the neighbouring areas
approach supports the general principles of responsible for companies in which Tapiola has major holdings. We
investment activity, where all ﬁnancial, social and eco- avoid situations where belonging to a group of insiders
logical viewpoints are taken into account in all the invest- would limit operational freedom.
Average overall income from investment activities for
Finnish pension insurance companies
Total return on Tapiola Pension
investment portfolio 2001 – 2005 12
9 9.2 9
7 7.2 7
5 5.2 5.3 5
0 0 0.5
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
The average annual return over the last ﬁve years has been 6.8%. The average annual return over the last ﬁve years has been 5.7%.
The ﬁgures do not include Tapiola Pension and Pensions Alandia.
Tapiola Pension’s principles of responsible investment In-house analysis as a basis for
an investment decision
“The cornerstone of Tapiola
Pension’s investment activity Tapiola’s in-house investment analysis plays a key
is regular and active interac- role in the investment process. The investment
tion with the management of activity is based on an approach including careful
the companies and with the company analyses and regular company visits.
boards of directors when nec- Investments are made in attractively-priced, proﬁt-
essary. There are hundreds able, growing and solvent companies. When making
of meetings every year, and
investment decisions, we strive to avoid investments
thus knowledge of the versa-
tility of business life and busi-
that would contradict our values. The expertise and
ness operations in general is procedures of the company management are as-
increased,” says Investment sessed to ensure the creditability and long-term
Manager of Tapiola Pension, success of governance. Thus, there is no need to use
Hanna Hiidenpalo. any investment methods actively excluding certain
She was the chairperson of a committee studying the op- industries or countries.
portunities of the pension insurance companies to increase
their investments in the Finnish market. The study was part Responsibility cannot be transferred
of the operations of a Pension Advisory Committee led by
Managing Director Kari Puro. The committee studied how In investment activity, the responsibility cannot
risk-carrying capacity could be increased to improve returns be transferred to any third party. That is why the
from employee pension funds and thus reduce the need for company needs to know the investment targets as
increases in employee pension premiums. well as possible. Therefore, investments cannot be
targeted at companies with sustainable development
The investment return of Tapiola Pension is one of
indexes only, because the basis for their evaluation
the social responsibility indicators monitored by
may be notably different from the investment
Tapiola. Pension insurance companies play an
principles of Tapiola Pension, and in practice the
important role in society by providing pension
investments focus too much on the largest compa-
insurance services. The most important task of
nies. With a careful in-house analysis, the company
Tapiola Pension is to secure the pensions of the
aims at the best return potential available, and thus
customers. The assets received from pension
investments are often made in other companies than
premiums are being increased in order to be able to
the largest ones. Small and medium-sized compa-
pay current and future pensions. This is why the
nies are rarely included in these indexes. However,
company strives to accrue as good a return for the
the composition of various indexes is being actively
investments as possible within the chosen risk level
monitored and interaction with consultants in the
under all market situations. This requires expert
sector is conducted. Consultants are used to moni-
investment operations as well as an in-house
tor trends in order to react to potential problems
analysis and operations in line with the Group’s
together with other agents.
Investment activities aim at reaching a high and Increased signiﬁcance of interaction
stable return in the long term in all conditions while A little more than a third of the monetary value
avoiding excessive risk of losing capital. This of Tapiola Pension’s share portfolio is invested in
approach supports the general principles of respon- companies that are included in the sustainable
sible investment activity, where all ﬁnancial, social development indexes. The rest of the companies are
and ecological viewpoints are taken into account in small and medium-sized companies not included in
all the investments. the consultants’ monitoring scope. Most of these
companies are small Finnish or Nordic companies.
Solidity and productivity In these cases, the signiﬁcance of company visits and
The most important principles in investment activi- annual meetings with company executives is even
ties are the solidity and productivity of investments. greater. During the meetings, social responsibility
The objectives are to secure investment assets and may also be handled in addition to other issues.
generate the highest returns at the chosen level of
In mutual fund investments, typically made outside
risk, within the framework of balance sheet require-
Europe, the company attempts to follow the same
ments. In the long term, the company needs to
values as in direct investments: the responsible
acquire the given absolute minimum return on the
portfolio managers must be known to the company
and their investment policy must be in line with the
Tapiola Pension policy. Regular meetings many
times a year are held with the portfolio managers
in charge of mutual fund investment decisions, and
the same issues are handled with them as in
Real Estate Operations
Tapiola is a notable real estate owner in Finland. At the risks for the real estate investment sub-markets. Those
end of 2005, the market value of the Tapiola real-estate sub-markets that meet the required criteria and have the
portfolio totalled EUR 1.55 billion. The Tapiola Group best return outlook will be selected.
Real Estate Unit constructs and maintains ofﬁces and
apartments as well as rents them out to customers and
arranges services connected with the real estate. Further- Construction and maintenance
more, the unit is responsible for ﬁnancial management services
and reporting regarding the real estate capital and pre-
pares real estate investment projects for the Investment When the Tapiola Group Real Estate Environmental Pro-
Activity Executive Team and the boards of directors. gramme was updated, new environmental and life cycle
objectives for construction of ofﬁce and business build-
In 2005, the real estate investments of the Tapiola Group ings for the years 2005–2008 were established. The
totalled ca. EUR 135 million. Positive value changes and programme aims at retaining environmental issues as a
regular cash ﬂow are expected from the long-term real es- priority also when planning new buildings in which Tapi-
tate investments. The most important criteria used when ola is an investor or when making repairs in real estate
choosing real estate investments are the expected proﬁts owned by the Tapiola Group. Environmental instructions
and related risks. When evaluating risks, environmental for architects were also updated at the same time. The
risks connected with the real estate are taken into ac- instructions also related to design categories and plan-
count and evaluated for the entire life cycle of the real ning of humidity-related structural parts.
estate, from construction and use all the way to demoli-
tion. Real estate investments are realised either by pur- The life cycle and environmental objectives for buildings
chasing a ready-made target or by constructing a new will be further speciﬁed when the classiﬁcation in line
property. In all cases, previous use of the real estate or with the Energy Performance in Buildings Directive is
plot is studied, and condition evaluations and environ- implemented in its entirety in Finland in 2009. The di-
mental reports are ordered when necessary. rective will have an impact on the building of new sites
and the repair of existing ones. The directive includes
The starting point for the process of selecting and invest- a calculation method for the energy efﬁciency of build-
ing in unlisted real estate funds is a macro-level analysis ings and a requirement for an energy efﬁciency certiﬁ-
of the real estate investment market, paying attention to cate that must be available when a building is taken
the political and economical operating environment, ma- into use, sold or rented out. Furthermore, the directive
turity, transparency and liquidity of the real estate mar- requires regular inspections of heating boilers and ven-
ket, economic growth as well as return opportunities and tilation machinery.
Other Financial Impacts (3.17.)
Transfer to an electronic invoicing and payment system reminder if an invoice remains unhandled for more than
has improved markedly Tapiola’s own payment behaviour, two days. During the spring of 2006, automatic posting
which was previously problematic due to the complex of invoices from regular customers will be possible. This
organisation. In 2005, Tapiola received approximately will speed up the process even more. The objective is to
74,000 invoices. In the previous year, the company re- include orders in the same electronic system within the
ceived almost 75,000 invoices. Of these invoices, 81% next few years.
were paid by the due date compared to 63% the previous
year. We are unable to reach a situation where 100% of
the invoices are paid by the due date, because an invoice Development of purchases of services
connected with real estate activity cannot be paid before and goods in 2003 – 2005 (EC3)
veriﬁcation of the quality of the work, for example. (EC4)
(EUR m) 2003 2004 2005
At present, already approximately 15% of the invoices Tapiola General. Group 33.6 34.0 40.6
arrive at Tapiola in electronic format. An electronic in-
Tapiola Life. Group 13.3 9.3 7.6
voice will be included in the Tapiola payment system the
day following the day on which the supplier’s system pro- Tapiola Pension. Group 9.0 10.9 10.6
duced the invoice. The system also issues an automatic Total 55.9 54.2 58.8
The ﬁgures are audited.
Responsibility for Personnel Creates
Foundation for Mutual Success
As a mutual company, Tapiola carries responsibility for Year of change 2005
the personnel as an employer and responsibility for the
customers as an expert. Tapiola’s responsibility for the The results of the working environment study conducted
personnel is complemented by the mutual responsibility in the spring of 2005 showed a slight weakening com-
of the personnel for Tapiola’s success. Responsibility for pared to the previous level. This was probably caused by
the personnel means having a good personnel policy and the demanding changes in the service process in the local
carrying the responsibility of an employer. Competent, organisations. However, the fact that so many persons an-
service-oriented and motivated personnel who like their swered the questionnaire showed that the personnel wish to
work are an important factor in the success of a company. inﬂuence issues. At the demand of the Group’s Boards of
Directors, several projects for developing information ﬂow,
Well-being at work and the expertise of the personnel are leadership and cooperation were started in the spring. Due
priorities monitored by the Group. They are at the root of to these projects, the internal atmosphere study conducted
all success. There are excellent opportunities for devel- in the autumn already showed an improvement.
oping expertise; in the past years, we have focused espe-
cially on web learning and training for supervisors. The overall satisfaction index of the working environment
study in 2005 was 59.8% compared to 61.3% in 2003.
A new personnel policy was implemented and widely According to the study, the biggest change for the bet-
presented during the spring. The central idea in the new ter was found in the improved knowledge of the central
policy is the principle of reciprocity: Tapiola commits to content of the Tapiola strategy. The most important ar-
being a responsible employer but also expects the employ- eas of development related to the need to cut bureau-
ees to work in a responsible and committed fashion. The cracy, boost the effectiveness of operations and lessen
employees of Tapiola feel that the Tapiola practices pre- competition between the various companies and units,
sented in the personnel policy are their own creation. as it hinders operations.
In the next few years, the baby boomers will retire, and
an extensive change of generation is expected at the Tapiola Data one of the 100 best workplaces in
management level, for example. This is why the Group Europe (EC3)
has paid attention to gathering and utilising information
based on the long experience of employees, planning for Tapiola Data was one of the six Finnish companies
replacements has been started and the personnel has that were included in the list of the one hundred
best workplaces in Europe. The best workplaces
been encouraged to try job circulation.
were sought using the Great Place to Work in
concept in 15 European countries. Companies from
17 sectors were included.
Objectives and results 2005: Personnel In 2003, Tapiola was included in the top ten
Finnish workplaces and in the top hundred Europe-
Status of the Team study mean value: Objective 8.3, actual ratio 8.2 an workplaces.
Presentation of savings products: Objective 20%, actual ratio 20%.
Objectives 2006: Personnel Number of personnel continues
Claim service availability 83%.
The past ten years have been a time of continuous de-
Overall commitment 0.80.
velopment for the Tapiola Group. During these years, the
number of personnel has increased strongly, for exam-
The monitored areas in the Tapiola scorecard are customers, ple by 144 persons last year. At the end of 2005, the
personnel, ﬁnances and market position as well as processes. number of personnel employed was 2,730. The number
Above is a description of the objectives set and their realisa- includes all those in an employment relationship with
tion in 2005 as well as the objectives for 2006. Tapiola, i.e., permanent and ﬁxed-term employment re-
lationships, part-time employment relationships and per-
sons on holiday without pay. This year, the personnel are
expected to grow by up to 200 persons. (LA1)
Personnel divided according to type of Employment relationship age structure
employment contract 31 December 2005
Employment contracts Permanent Fixed-term Total 35+ years 4.4%
Head ofﬁce, Espoo 1717 169 1886
Local organisation total 590 90 680
- Greater Helsinki Area 124 14 138 11.7%
- South-Western Finland 82 12 94 0–4 years
- Central Finland 86 26 112 37.4%
- South-Eastern Finland 86 8 94 18.9%
- Ostrobothnia 48 9 57
- Eastern Finland 79 7 86
- Northern Finland 85 14 99 27.6%
At the year-end, 78 persons were on part-time pension.
During the past few years, this ﬁgure has remained al-
most the same. The peak year was 2003 when there were
101 persons on part-time pension. The number has de-
creased since then.
Education distribution 31 December 2005,
Approximately ten per cent of the entire personnel are in entire personnel
a ﬁxed-term employment relationship. Most of the ﬁxed-
Researcher education 0.6 %
term relationships are due to temporary employees ﬁlling Basic-level education
in for those on family leave, or to timework suited to the Higher 6.7 %
life situation of the employee in question, for example a university degree
student. The number of ﬁxed-term employment relation-
ships decreased at the end of 2002 and has remained the
same as the number of personnel has increased. Medium-level
The turnover of permanent staff was 4.2%. The internal university degree 30.6 %
turnover rate, or the rate of personnel transferring to new
tasks inside the company, was 11.0%. (LA2)
The increase in the number of personnel also shows in
the personnel’s age structure. Approximately 40 per cent
of the employees of Tapiola have been employed by the
company for less than ﬁve years, more than a quarter have
Age structure 31 December 2005
Education distribution 31 December 2005,
450 new personnel
Researcher education 0.4% Basic-level education 2.7%
350 374 375
150 168 Medium-level
139 Lower university education
50 77 27.8%
Men Women Vocational
–29 30–39 40–49 50–59 60–
been employed for 5–14 years and the rest for a longer There are 12 members, four of whom represent the em-
period of time. Of all the employees, 4.4 per cent have ployers and eight various personnel groups. The chair-
been with the company for more than 35 years. person changes every other year and is a member of the
employer and a member of the personnel in turn. There
is a separate Participation Committee for Tapiola Data.
Participation increases commitment TAOS held four meetings in 2005.
One precondition for the good ﬁnancial success of the Since 2001, the Supervisory Boards of the insurance
Tapiola Group has been the commitment of the personnel companies have each included a fully authorised repre-
to their work and to continuous improvement of quality. sentative of the personnel. Representatives of the per-
sonnel are also included in the Executive Teams of the
In order to secure conﬁdential relations and constructive various business units and regions. Representatives of
interaction between the employer and the employees, there the personnel are included in all of the most important
is a full-time elected representative for the ofﬁce person- committees of the Tapiola Group, such as the Value Man-
nel of Tapiola, assisted by a deputy representative work- agement Committee, which has been renamed the Social
ing part-time. Furthermore, there is a negotiating elected Responsibility Committee. The personnel also participate
representative and his/her deputy in each ofﬁce. The sales in compilation of the annual operation plans. (LA13)
personnel, bank clerks and employees of Tapiola Data all
have an elected representative working part-time. The joint corporate body of the employer and the person-
nel in equality issues, the Equality Committee, is a part
In case of restructuring, the personnel will be given in- of Tapiola’s efforts to increase participation. The tasks of
formation and negotiations will be conducted as regu- the committee include, for example, promotion of Tapio-
lated by agreements and law (LA4). There is no retraining la’s equality objectives and preparation of equality plans.
programme in case of termination, because this has not Three of the six members of the committee are repre-
been deemed necessary (LA16). Instead of a life-long learn- sentatives of the personnel. The committee held three
ing programme, an essential part of the Tapiola Group’s meetings in 2005 to update the equality plan to meet
planning, guidance and monitoring system are annual de- the requirements set forth in the Equality Act. There is
velopment plans for each employee and each group drawn no system to monitor adherence to the equality plan, but
up in connection with performance reviews (LA17). the new Equality Act requires that the results be evalu-
ated in the equality plan in the future. (LA10)
There is a Labour Protection Committee including seven
representatives of the employees and ﬁve representa- The share of women in the top management of the Tapi-
tives of the employer. The labour protection delegates ola Group is 20%, on the Boards of Directors 12% and
also participate in the meetings. There are separate del- on the Supervisory Boards 18%. Forty-six per cent of the
egates for the head ofﬁce, the sales personnel, the bank department-level managers are women. (LA11)
personnel and the different regions. There is an elected
labour protection ombudsman for the kitchen personnel. The opinions of the personnel are collected regularly,
The committee holds four meetings a year. (LA6) 1–2 times a year, by means of the Status of the Team
study. Furthermore, a biannual working atmosphere study
The Tapiola Participation Committee or TAOS is the co- is conducted.
operation body of the entire Group. The committee han-
dles all extensive issues connected with the personnel,
with the aim of improving internal information ﬂow and
reaching common stands.
Mean values in the Status of the Team study 2003 – 2005
Year 2003 Year 2004 Year 2005
Respondents 1849 2091 2149
Support and feedback from working community 7.9 8.0 8.0
Strategy - 8.0 8.1
Feelings of success 8.1 8.1 8.1
Atmosphere 8.2 8.2 8.3
Support and feedback from immediate supervisor 8.2 8.2 8.2
Signiﬁcance of own work 8.5 8.4 8.5
Responsibility. power of decision 8.4 8.4 8.5
Utilisation of one’s abilities 8.3 8.4 8.4
Mean value for all questions 8.2 8.2 8.3
Well-being at work 8.1 8.1 8.2
Those meeting the objective (mean value 8 or more), percentage 76.4 77.2 78.0
Incentive schemes cians, for example. The occupational health care service
also includes the services of a psychologist. Furthermore,
Rewarding and giving recognition for success are impor- Tapiola offers special beneﬁts for the personnel on their
tant means of committing and motivating the personnel. birthdays and special work milestones.
A proﬁt-sharing system that increases the value of the
personnel fund was established in the Tapiola Group in
1991. The system rewards long-term commitment in Tapi- Labour union activity
ola and promotes reaching of good result objectives. The
amount of the proﬁt-sharing compensation depends on Approximately 60% of the persons included in the scope
the annual result of the Group and is at the most 3 per of collective labour agreements are members of a labour
cent of the annual salary. The criteria based on which the union. Most of the insurance personnel are members of
compensation is given are conﬁrmed annually. In 2005, the Union of Insurance Employees in Finland, which is
EUR 2.6 million was transferred to the personnel fund. a member of the Finnish Confederation of Salaried Em-
The fund total value is EUR 19.9 million. ployees STTK. The bank personnel have established a la-
bour union of their own, Tapiola Banking and Investment
The merit pay system covers the whole organisation and Professionals TAPSA, which is a member of the Confed-
is a part of the management system. Its objective is to eration of Financial Professionals RATAS.
encourage the personnel to excel. The merit pay is max
7% of the annual salary, and in practice the amounts Furthermore, persons working as experts may be mem-
paid have been on average 4%. The merit pay objectives bers of the Finnish Association of Graduates in Economics
are determined on the basis of the Group’s strategy, and and Business Administration, the Association of Finnish
they can be either team-speciﬁc or personal. The achieve- Lawyers, the Finnish Association of Graduate Engineers,
ment of objectives is estimated in performance review the Finnish Association of Civil Engineers, etc. There is
discussions. The sales personnel salary schemes include no centralised information available for these member-
various elements for rewarding performance, and their ships. (LA3)
proportion of the total salary varies from a few per cent
to approximately ﬁfty per cent.
Satisﬁed personnel will prosper
Tapiola’s objective of working and succeeding together is
also reﬂected in the merit pay scheme for the top man- One of the strategic objectives of the Tapiola Group is
agement of the Tapiola Group: it is based on long-term to retain a competent workforce who enjoys their work.
performance. The chairpersons of the Supervisory Board Well-being at work arises from expertise, participation
make decisions about the salaries of the board members and feelings of success. A high-quality labour protection
and deputy members, merit pay rules and beneﬁts as well programme and occupational health care can assist in
as issues relating to employment relationships, based on a preventing health problems. Labour protection focuses
proposition made by the Rewarding Committee appointed on mental well-being.
by the Cooperation Committee. The Boards of Directors
make decisions about salaries, merit pay rules and other Tapiola does not have any HIV/AIDS policies. (LA8) These
beneﬁts of the Managing Directors. The aids used when policies have not been deemed necessary in companies
deﬁning salary levels include, for example, classiﬁcation operating in the Finnish market only. However, there are
of tasks based on their difﬁculty (HAY classiﬁcation) and safety instructions for travelling personnel that are also
salary studies based on HAY comparison data. For a sal- given to the customer companies.
ary summary, please see page 36.
Tapiola Club is in charge of recreational activity for the
personnel. Tapiola offers an annual allowance for recre-
Personnel beneﬁts ational activity that the Club will use in line with their
operation plan. In the past few years, the allowance has
In addition to the personnel fund, the Tapiola Group offers been approximately EUR 220,000. Tapiola also sup-
personnel other beneﬁts. Examples of these are special ports recreational activity for retired personnel through
tariffs for insurance premiums, special bank accounts Tapiola Pensioners’ Organisation. At present, there are
and loan services, a lunch beneﬁt, coffee and tea free of 375 members in the organisation. Annual support from
charge as well as holiday cottages and additional pen- Tapiola is approximately EUR 14,000.
Sickness leaves as percentage of the working hour objective (LA6)
A notable beneﬁt is occupational health care, which has Year %
a central role in assessing the well-being of the person-
nel. In addition to the health care services required by
law, Tapiola pays for certain services of specialised physi- 2002 3.14
Occupational accidents occur mainly on the way units deﬁne for themselves the actions they will take
to and from work to promote well-being at work in order to reach the re-
sult objectives. The actions may be aimed at improving
In 2005, Tapiola employees suffered 75 occupational
working processes or working conditions, strengthening
accidents. Forty-six of these happened when commut-
physical or psychological resources or developing the
ing between the home and workplace; most of them
were caused by slipping or when bicycling. The rest working community. For special groups, so-called Ad-
took place either at work or on business-related trips. ditional Vire Programmes are arranged to motivate long-
The ﬁgures include the personnel of Tapiola Bank, the term employees of Tapiola to develop themselves and
data handling company Tapiola Data and the restaurant thus enable them to continue in their work until retire-
company Aura-Karelia. The accidents that happened at ment age. Experiences have been excellent: productivity
work were mainly caused by falling down or tripping, or has improved even more than expected. In 2005, Tapiola
as a result invested especially in improving the well-being at work
of loosing control of a tool. of the middle management.
The number of occupational accidents has increased.
Injuries have mainly been cuts, dislocations and Well-being at work and improvements are monitored an-
fractures. The accidents caused 761 sickness leave nually by means of the Status of the Team study where
days compared to 326 the previous year and 667 the the personnel evaluate their well-being at work on a scale
year before that. Therefore, one can say that the of 4 to 10. In 2005, the well-being at work mean value
statistics have returned to their previous level after the was 8.2.
excellent year 2004.
Occupational accidents are classiﬁed in the manner Tapiola started internal Work Community
required by the ESAW statistics reform of 2003. (LA5) of the Year competition
Occupational accidents and amount of claims paid
in 2001–2005 (LA7)
80 128 212 140 000
70 120 000
In the competition Work Community of the Year
2004, a work community whose members consider
30 the atmosphere good and its actions exemplary was
40 000 sought for the ﬁrst time. The applicants were
20 requested to write a description of their work
10 20 000 community in the form of a story.
0 0 Eight work communities participated in the competi-
2001 2002 2003 2004 2005 tion, and the four best applications were presented to
the Vire Executive Team. Further interviews evaluat-
ing the operations of the team were conducted with
Accidents, pcs Claims paid in euros the two best communities. The interviews were
conducted by Assistant Manager Silja Hyvärinen, who
is a trained evaluator of the Excellence Finland. She
Tapiolan Vire has been registered as studied, for example, team leadership, operating
a trademark principles, strategy, personnel as well as processes
and their results. The team members were asked
The objectives of the Tapiolan Vire programme that pro- questions such as how their supervisor has succeed-
motes well-being at work is to assist the personnel in ed in improving the team’s work, whether a multiple
coping at work, improve their productivity as well as de- expertise discussion has been conducted with all the
crease the number of sickness leave days and persons members of the team and how the team resolves
retiring prematurely. The Vire Executive Team, which al- conﬂicts, for example. Based on the reports made,
the Vire Executive Team chose to award the ﬁrst prize
so includes representatives of the personnel, meets on a
to both of the two equal competitors in April 2005
regular basis to handle the most important themes con-
nected with well-being at work. The Executive Team also The ﬁrst prize of the Work Community of the Year
selects a theme for each year. The theme of 2005 was 2004 competition was shared by the web business
“Ethics in our operations”. unit’s Net team and the Porvoo ofﬁce. An honorary
mention was given to the well-being at work services
In connection with annual planning, the departments of Tapiola Pension. The competition will be held
compile a Vire Plan where the teams, departments and annually.
Top management salaries, summary 31 December 2005
Title Name Salaries Merit and Compensation Pension
and other strategy for premature bene-
beneﬁts pay 2004 termination of ﬁts****
2005* (EUR)** employment
President Asmo Kalpala 386 274 200 000 18 months 60 years
Title Name Salaries and Merit pay Merit pay Strategy pay Strategy Compensation Pension
other ben- 2004, % 2004 (EUR) 2002–2004, % pay for premature bene-
eﬁts 2005* (max %)*** (max %)**** 2002–2004 termination of ﬁts****
Full-time members of Boards of Directors
Group Director Juhani Heiskanen 206 306 15(20) 26 716 18(30) 31 774 12 months 60 years
Group Director Tom Liljeström 198 668 14(20) 25 065 18(30) 32 418 12 months 60 years
Group Director Jari Saine 199 623 15(20) 28 154 18(30) 32 571 12 months 60 years
* Salaries and other beneﬁts include paid salaries, excluding merit pay, as well as company car, lunch beneﬁt and company phone. The salaries
of the management are based on the HAY classiﬁcation and scale, which are based on benchmarking information from the ﬁnancing industry.
** Annual objectives, spearheads and objectives for strategic period 2002–2004
*** Annual objectives for the year in question + spearheads
*** max % = Annual objectives for the year in question + spearheads
**** Strategic objectives for strategic period 2002–2004
**** max % = For strategic period 2002–2004
***** Pension arrangements paid by Tapiola
Managing Director Juha Seppänen 160 953 16(20) 22 495 18(30) 25 376 12 months 63 years
Managing Director Juha-Pekka 143 540 13(20) 17 284 18(30) 22 871 12 months 63 years
Managing Director Olli-Pekka Laine 148 492 15(20) 20 578 18(30) 23 803 12 months 63 years
Managing Director Harri Lauslahti 169 557 27(50) 38 919 0 0 12 months or 63 years
Period of notice
+ 3 months’
**** max % = For strategic period 2002–2004
***** Pension arrangement paid by Tapiola Tapiola Bank has a separate merit pay system based on a scorecard (Harri Lauslahti)
**** Strategic objectives for strategic period 2002–2004
*** max % = Annual objectives for the year in question + spearheads
*** Annual objectives for the year in question + spearheads
The salaries of the management are based on the HAY classiﬁcation and scale, which are based on benchmarking information
from the ﬁnancing industry.
* Salaries and other beneﬁts include paid salaries, excluding merit pay, as well as company car, lunch beneﬁt and company phone.
Developing expertise based on the based tool, presently under development and meant to
strategy support the work of supervisors. The Tapiola operating
model includes annual performance review discussions
Development of expertise is based on the business and with all the employees.
personnel strategy of Tapiola. The development priori-
ties for the personnel are deﬁned for each strategic pe-
“Welcome to Tapiola” course transferred to the web
riod. A model combining individual-level expertise with
the Group’s values and strategies is used in managing As operations have developed, Tapiola’s personnel
expertise. have grown so fast that the traditional courses for
newcomers no longer fulﬁlled their purpose. That is
Each person is held responsible for his or her expertise why the course was transferred to the web, where
and its development. The supervisors are in charge of man- newcomers and also other employees of Tapiola can
independently familiarise themselves with the basic
aging learning and offering good conditions for learning
issues of Tapiola or revise their knowledge. The
by means of daily management and performance review course offers a general view of Tapiola, the mutual
discussions. In the future, methods for learning while operations model, Tapiola’s practices, the Tapiola
working will be developed in particular, such as job ro- Strategy, the services offered to customers and
tation, work management, mentoring and web learning. employment relationship issues. Furthermore, the
More than 2,400 full-time employees of Tapiola and 600 course includes a presentation of legal and safety
insurance representatives have participated in the web issues and environmental issues.
learning programmes. Our system cannot provide a cen-
tralised view of training hours per employee. (LA9)
Library Information Service guides
In 2005, learning focused on banking, saving and invest- to the source of knowledge
ment services, risk management and customer expertise.
We support independent studying related to the expertise The Library Information Service is an internal service
needed in one’s tasks. A total of 682 Tapiola employees point of Tapiola that guides the employees to the source
have taken the insurance examination. Thirty employees of the information they need. The main objectives of the
have passed an upper-level insurance examination. Near- operations are to promote effortless and open use of in-
ly 1,000 general examinations offered by the Marketing formation sources and to offer the employees of Tapiola
Institute or examinations created especially for Tapiola the information sources they need in their work.
have been taken.
The theme of 2005 in the Library Information Services
Apprenticeship training employs an examination aimed at was improvement of electronic services in order to make
business-school graduates as well as professional exami- all employees of Tapiola, also in the local organisation,
nations in the ﬁnancing and insurance sector. At present, equal when it comes to acquiring information. The ex-
the language training offered is speciﬁc training aiming tensive expertise of the personnel was promoted for ex-
at improving practical language skills. ample by taking into use new electronic services and by
systematically developing the professional library selec-
All new employees and most employees transferring to tion. Special attention was paid to maintaining the high
a new position inside the company are being initiated to level of customer service. The idea is that every Library
their tasks in line with the Tapiola Initiation Model. The Information Service customer could recommend the
newcomers become acquainted with the house and its service to others.
habits by means of a web course, and customised train-
ing is offered to new management personnel.
Internal communication to support
The role and responsibility of supervisors in developing effectiveness
skills and well-being will be highly stressed during this
strategy period. The priorities of leadership development Effective internal communications ensure that everybody
are personnel management and especially management has all operating instructions and up-to-date information
of expertise and performance. Since 2001, almost all of at their disposal. Tapiola’s internal data network Tasku
the supervisors have received training in personnel man- includes, for example, the Group’s operating policies and
agement skills. Supplementary business management practical instructions, including instructions on recruiting
training is obtained through external providers. Devel- new employees and initiating them to their work as well
opment of proximity management is supported by new as instructions on the Vire activities. Tasku also includes
training programmes. policy terms, brochures and product speciﬁcations, the
internal phonebook and training material. Furthermore,
The priorities in human resources have been personnel Tasku is the desktop of all Tapiola employees, with con-
reporting and working hour instructions as well as a web- nections to the purchase invoice handling software, the
working hour monitoring system, the bank payment sys- Training expenses
tem and the web service. Tasku also offers a continuously
updated news section and a press monitoring system. The The training expenses include conference and course
Tasku development project continued throughout 2005. payments, professional magazines and literature, ex-
The objective is to have the overhauled Tasku at the dis- amination payments, purchasing of training materials,
posal of employees in June 2006. study grants, travel expenses related to training and ex-
ternal services used in training. We have noted that web
Tapiola’s professional magazine Acta complements inter- learning improves cost-efﬁciency and quality of training,
nal communications and offers background information. especially in product-related training. This shows as a
The Group organisation with its various levels of Execu- reduction in training expenses.
tive Teams and meetings is also an important channel
Training expenses, EUR
for internal communications.
2001 2002 2003 2004 2005
The Strategy Communications Committee is planning and
carrying out a Communications Programme to support the 2 219 896 2 410 006 1 790 712 1 608 332 1 902 918
supervisors and their working communities in realising the
policies chosen for the strategic period 2004–2006. The ﬁgures are the total training expenses for the en-
tire Group. We are unable to monitor training events or
expenses at individual or personnel group level.
Personnel expenses (EUR million)
Tapiola General, Group 2003 2004 2005
Salaries and remunerations 52.9 58.2 61.2
Pension expenses 9.3 10.5 9.4
Other personnel expenses 3.7 4.2 4.6
Total 65.9 73.0 75.2
Tapiola Life, Group
Salaries and remunerations 13.1 12.6 12.5
Pension expenses 2.9 2.3 2.4
Other personnel expenses 0.8 0.8 0.8
Total 16.9 15.6 15.7
Tapiola Pension, Group
Salaries and remunerations 11.0 12.9 13.7
Pension expenses 2.6 2.4 2.7
Other personnel expenses 0.8 0.8 0.9
The Tapiola General Group ﬁgures also include the per-
Total 14.4 16.2 17.3 sonnel of Tapiola Bank Ltd. The ﬁgures are audited.
Tapiola readiness course as national defence course
In the autumn, for the ﬁrst time, the Tapiola Group The Tapiola Group companies have been classiﬁed
arranged a readiness course for exceptional condi- as important companies that are expected to
tions in the form of a national defence course. The continue to operate also in exceptional circumstanc-
course was arranged for the personnel of the head es. That is why employees crucial to the operations
ofﬁce reserved for the needs of the Tapiola Group of Tapiola who are also persons liable for military
in exceptional conditions, or the so-called VAP service may be exempted from military service and
reserved personnel. The practical arrangements were used by the company instead. A VAP reserve status
taken care of by Tapiola Safety Management and is applied for personnel who are deemed essential
the Tapiola Club National Defence Department. for operations in exceptional circumstances. In
Tapiola, there are approximately 50 such persons.
“Securing operations in exceptional circumstances The exemption is granted by the Military County
and maintaining readiness is part of the social Staff.
responsibility of Tapiola, and customers and authori-
ties expect it of us,” stated Managing Director
Juha Seppänen in the event’s opening speech.
We Bear Our Responsibility for
Customers and to Customers
The vision of Tapiola as a mutual company is to take care Insurance Supervisory Authority, which aims to ensure
of our customers so actively and responsibly that they stable operations of insurance and pension companies
will recommend us to others. and maintain trust in the insurance sector. In the bank-
ing sector, the Finnish Financial Supervision Authority
At Tapiola, customers will receive all the insurance, sav- aims at keeping the ﬁnancing market stable and main-
ings and investment services they need under the same taining trust in the operations of the market. The super-
roof. Private customers will also receive banking services. vising bodies work for the beneﬁt of the users of insur-
Product and service development is based on studies of ance, banking and investment services.
the needs of the customers. Care has a central role in the
services offered to private customers. It improves consum- Tapiola is a member of the Association for
ers’ knowledge of their risk level and insurance cover as Finnish Work and has the right to use the Key
well as of the development of their savings and ﬁnances Flag logo to show that the services of Tapiola
as a whole. Managing one’s personal ﬁnances is a neces- are Finnish. (PR6)
sary basic skill and part of one’s life management.
We have compiled internal instructions and operating
models to maintain the steady quality of our services Development of number of customers
and fair treatment of our customers. Supervisors are in
charge of monitoring that the instructions are followed. The number of private household customers keeps on
The privacy protection of customers has been secured by growing: at the end of 2005, there were almost 812,000
means of information security instructions, and we also such customers. Private household customers include
monitor compliance with these instructions. (PR3) Bank- households, farms and entrepreneurs. At the year-end,
ing operations on the Internet are also subject to secu- there were almost 32,000 corporate and community cus-
rity requirements. tomers. The number of mutual fund unit owners and the
amount of fund capital continued to grow. Fund capital
Objectives and results 2005: Customer increased by 33 per cent to EUR 974 million. At the end
Outline of requirements in customer service situations: of 2005, the number of mutual fund unit owners was
Objective 30,000, actual number 22,500. 15,067, showing a handsome increase of 48 per cent.
At the end of 2005, the bank had 48,700 customers.
Companies’ willingness to recommend Tapiola to others: Objective
more than 19%, actual percentage 14%.
Objectives 2006: Customer Service for the needs of the
Bank reputation: Objective 60%. customers (2.7)
Willingness to recommend: Objective 55%.
Tapiola offers private household customers – households,
The monitored areas in the Tapiola scorecard are customers, entrepreneurs and farms – versatile insurance and ﬁnanc-
personnel, ﬁnances and market position as well as processes.
Above is a description of the objectives set and their realisa-
ing services. (2.2.) In addition to household insurance and
tion in 2005 as well as the objectives for 2006. farm insurance as well as other forms of property insur-
ance, the company offers insurance for health and life
In the insurance and ﬁnancing sector, products and ser- risks. For saving and investment, we offer life insurance,
vices may inﬂuence the health and safety of a customer individual pension insurance and funds as well as asset
especially when a customer makes a saving or invest- management services. The banking services offered to
ment decision that is contrary to his or her needs due to private households include daily banking services as well
misleading information. (PR1) No misconduct of this kind as saving and investment solutions. In addition to insur-
has occurred, nor has Tapiola received any warnings. (PR4- ance and banking services, Tapiola offers review of cov-
Section 9 of the Insurance Contracts Act states that erage where customers are able to regularly examine the
the valid content of an insurance contract is the content adequacy of their insurance coverage and check that their
understood by the policyholder based on the informa- solutions are up-to-date with the help of an expert.
tion received. The insurance sector is monitored by the
During the year 2006, Tapiola became the market leader Handling times for household claims have been cut by
in farm insurance. Forty-four per cent of all Finnish farms approximately 10 per cent, while the handling of corpo-
have chosen Tapiola as their primary insurance company, rate claims is up to a third faster than before. Only one
and Tapiola has a customer relationship with 67% of all out of six decisions on claims is handled for more than
farms. During the past three years, the market share has a week. For example, as many as 12,000 household in-
increased by ﬁve percentage units. In addition to farm surance claims are handled by phone every month. Less
insurance, Tapiola is a prominent market leader also in than a ﬁfth of the claims are handled using traditional
other insurance types for farms: the company has a share written notiﬁcations of claim. The regional claims advi-
of more than 50% in voluntary farm pension insurance sor network covering the entire country, together with the
(54%), life insurance savings policies (51%) and forest loss assessors, takes care of most of the notiﬁcations of
insurance (51%). This information is based on a study on claims requiring an inspection.
farm insurance conducted by TNS Gallup. When studying
the various regions, the best market shares are in North- All of the products and services of the Tapiola Group are
ern Finland (51%), Eastern Finland (49%) and South- marketed under the joint Tapiola brand. The only sepa-
Eastern Finland (48%). rate products are Omaeläke Private Pension, Omavara
Life Insurance, Oma Web Service as well as the Agro and
For companies, Tapiola offers a comprehensive risk man- Agria products for farms.
agement service, including risk appraisal, risk manage-
ment consulting, property and business insurances tak-
en to cover risks, statutory and voluntary personnel risk New products and services 2005
insurance, as well as ﬁnancing and investment services
and services connected with well-being at work for the In accordance with the care model implemented by the
personnel of Employees Pensions Act (TEL) customers. life insurance companies, customers are contacted by
phone before being sent a negative decision on a claim.
A claims service model based on the telephone service Negative decisions are made in approximately three per
started in 1998 has now been expanded to cover all of cent of the cases. The customers have given positive
Finland. Since October 2005, claims customers in almost feedback on this active care model.
all insurance categories have been able to start the han-
dling of their claim by making a single phone call. Only An insurance policy for grave illness was developed in
claims issues connected with life insurance and medi- Tapiola Life based on the clear need expressed by cus-
cal expenses insurance should be taken care of on the tomers. The Omavara Grave Sickness Insurance covers
Internet or in an ofﬁce. illnesses and accidents that cause high costs. The in-
surance covers doctor’s fees, hospital charges and medi-
cal expenses. It will be applied when the costs due to an
Objectives and results 2005: Processes illness become high and risk causing ﬁnancial problems
Quality of claims service to motor vehicle insurance customers: for the customers. The deductible is EUR 1,000.
Objective: Share of commendable evaluations 55%,
realised share 55%. The vehicle salvage beneﬁt is supplementary coverage
Quality of claims service for household insurance customers: related to the Tapiola motor vehicle insurance that was
Objective: Share of commendable evaluations 55%, taken into use in the autumn of 2005. The coverage is
realised share 55%. automatically included in all new motor vehicle insur-
Share of pension savings package out of the number of ance contracts and can easily be added to old ones. The
new pension insurances: Objective 25%, actual ratio 10%. supplementary coverage became popular immediately:
as many as 27,000 vehicle salvage beneﬁts were sold
Objectives 2006: Processes
in three months.
Objective: Success of further planning in the corporate segment The most recent funds in the Tapiola mutual fund family
(an indicator will be created in the spring). were evaluated by the international company Morningstar
Basket level for corporate customers: Objective +1 percentage unit. in May. Tapiola Institution and Tapiola Wellbeing were
upgraded to the ﬁve-star category, and the ﬁrst stars were
The monitored areas in the Tapiola scorecard are customers, awarded to the USA and the Emerging Markets (four stars)
personnel, ﬁnances and market position as well as processes.
funds and to the High Yield (three stars) funds.
Above is a description of the objectives set and their realisa-
tion in 2005 as well as the objectives for 2006.
Finnish Loss Survey SVT Ltd, which inspects the motor
vehicle damage of all Tapiola customers, has started a
At the turn of the year, already 85 per cent of house- new service: reconstruction calculation connected with
hold claims and 60 per cent of corporate claims were the analysis of trafﬁc accidents. This can be of help in
notiﬁed by phone. This has also speeded up operations. accident investigations. The programme can be used to
calculate accidents involving two or more vehicles, fall- Furthermore, Tapiola employs local risk management engi-
ing over, driving off the road or movements of passengers neers who assist our customers locally throughout Finland.
or cargo during an accident. The service will have nota- In case of damage, the customers have the entire Tapiola
ble impacts on the legal protection of individual claims loss assessment service at their disposal. Our loss asses-
customers. In situations where it has not before been sor network covers all of Finland and works in close coop-
possible to prove the excess speed of one of the parties, eration with the claims service. When taking care of and
the person required to give way was often deemed solely correcting damage, we use materials and working methods
guilty in crossing accidents, for example. Now, excess that take into account sustainable development.
speed can be proven with great certainty.
In 2005, asset and operative risk management projects
were conducted to develop methods supporting risk se-
Rewarding years of work after the age of 55 lection and assessment and to employ new methods that
offer our customers even better service tailored to their
Tapiola Pension’s well-being at work services individual needs. Some of our customer companies have
department conducted a study among employees
participated in the development work in order to secure a
45–55 years of age as to what are the most impor-
tant issues keeping them at work and what are the customer-oriented viewpoint. Comprehensive enterprise
issues that make them want to retire. The study risk management (ERM) was established as a method for
showed what the company can do to keep employ- conducting large-scale risk assessments with the largest
ees happy until the end of their working career and customers. During the year, many risk assessments were
what is required from the supervisors. conducted with major clients and SME customers. The
claims handling service was developed by establishing
The employees deemed feedback and acknowledge- partnerships with the parties whose cooperation is re-
ment from their supervisors extremely important. All
quired in case of damage.
in all, it seems that long-term humane management
is of utmost importance. If proﬁtability alone is
emphasised, working life becomes too stressful.
Management should also be able to build a feeling International services
of permanence and show appreciation.
Tapiola can grant insurance in any EEA country, as long
The results of the study will be used to develop the as the insurance premium tax is paid to the country in
Tapiola Pension well-being at work services. which the risk is located. In practice, however, Tapiola
cooperates with local insurance companies to insure
risks outside Finland so that the local company will take
Risk management services of the insurance and reinsure the risk with Tapiola. This
way, the operations will be in line with the local legisla-
Tapiola offers corporate customers jointly deﬁned and tion in each country.
planned risk management and claims handling services.
The objective of systematic risk management based on Tapiola’s emergency service on weekdays from 8 p.m. to
the mapping of risks for each customer is to secure the 8 a.m. and on weekends and bank holidays is taken care
undisturbed continuity of business operations. At the of by the emergency centre of Auria Ltd. The emergency
same time, expenses arising from any realisation of the centre also takes care of the emergency service of Au-
risks will be minimised. By mapping risks together with tomobile and Touring Club of Finland. In the past few
customers, the most important risks of each business can years, 60% of the emergency calls to Tapiola have been
be studied. The mapping also includes an evaluation of made because of vehicle damages.
which risks should be managed with Tapiola’s services and
which need a different type of management solution. In 2005, a total of 843 accidents occurred abroad to cus-
tomers of Tapiola. Most of the accidents were minor car
By means of systematic and long-term risk management, accidents, and the customers were able to return to Fin-
a company can reduce or even eliminate the detected land with the vehicle. There were also a couple of dozen
risks. Tapiola assists the customers in this by placing its minor thefts. Actual assistance was needed in approxi-
risk management and insurance expertise at their dis- mately 40 cases. In 2005, Tapiola took care of 52 cases
posal. We employ risk managers with special expertise for the partnership companies where a Finn had suffered
in ﬁre safety, safety of business premises regarding bur- a loss abroad. Customers of Tapiola caused 200 cases
glary, locking and other theft cover, faults in construc- of damage in Sweden. Tapiola’s partnership company
tion, industrial safety, liability and agreement risks con- Länsförsäkringar took care of these cases.
nected with business operations, product liability and le-
gal risks, risks due to termination of business operations
and information security.
By means of our centralised customer and market research Customer satisfaction studied
activity, we are able to learn more about the expectations in all customer segments (PR8)
of our customers and anticipate the market trends bet-
In 2005, approximately 20 brand, service image
ter. We conduct surveys to monitor the satisfaction of
and other customer and market studies were con-
our various customer groups as regards our operations, ducted within the Tapiola Group to study the
services and products. impressions and satisfaction of Tapiola’s customers
regarding Tapiola’s services, and the opinions of the
Annually, we monitor the number of customers planning customers of our competitors regarding these
to take their business to another insurance company. This companies. The studies were conducted in ﬁve
research offers useful comparison data also on our com- different customers segments: households, entrepre-
petitors’ customers. We have monitored these events since neurs, farmers, SMEs and large companies.
1996. During the entire time, the customers of Tapiola
Furthermore, almost 30 service experience surveys
have been the second most loyal. In 2005, only 7 per were conducted in 2005 to chart the experiences
cent of the household customers who participated in the of Tapiola’s customers regarding efﬁciency of the
survey had considered leaving Tapiola, compared to every insurance service and claims services and quality
fourth or ﬁfth customer of our major competitors. of the phone services, for example.
Since 2002, we have also monitored how well we are Tapiola’s customers are satisﬁed
reaching our vision, i.e., willingness of our customers to
In 2005, 7% of the household customers of Tapiola
recommend Tapiola to their friends. In 2005 as many as were considering switching to another insurance
51% of the persons participating in the survey said they company. The willingness is at the average level for
could recommend Tapiola. The level of recommendation banks but clearly lower than that of the customers
has always remained at a higher level than that of the of other insurance companies.
competitors, except for one group of companies.
Tapiola’s corporate customers are considering
% Willingness to recommend, households switching to some other insurance company more
100 often than household customers; the willingness to
83 switch in 2005 was 14%. This number was, howev-
80 er, the lowest for all the insurance companies.
60 52 51
45 49 The satisfaction of Tapiola’s customers can also be
40 seen in the fact that approximately half of both
household and corporate customers could recom-
mend Tapiola to their friends.
2001 2002 2003 2004 2005 % Willingness to switch, households
% Willingness to recommend, companies
No study was conducted in 2004.
81 10 10 10 9
80 10 7
60 47 5
2001 2002 2003 2004 2005
0 % Willingness to switch, companies
2001 2002 2003 2004 2005 30
Since 2001, customers’ willingness to recommend Tapiola as an insurance company and 17 19
since 2002 their willingness to recommend Tapiola as a ﬁnancial company have been 20 14
studied, so the results are not comparable in this respect. 9
These research results were taken from brand and service 0
image studies ordered by the Tapiola Group from Otan- 2001 2002 2003 2004 2005
tatutkimus Oy at the end of 2005. No information is available for 2004.
Is Relevant and Ethical
The advertising, direct marketing and web communica- important insurance products, and by developing the ser-
tions of Tapiola comply with high ethics standards. (PR9) vice process documentation.
At Tapiola, the truthfulness of messages is not the only
criteria for advertising content. We always choose issues The Tapiola Group publishes two customer magazines,
relevant to our customers and potential customers and both of which appear twice a year. In 2005, the Oma-
focus, for example, only on beneﬁts and arguments that talous magazine was delivered to approximately 410,000
are important for our customers. In 2005, Tapiola did private households that are loyal customers of Tapiola.
not violate any advertising and marketing regulations, in- The Yritystalous magazine was delivered to approximately
structions or recommendations, neither did we receive any 35,000 corporate customers and also to potential cus-
notiﬁcations about our marketing actions from banking, tomers and stakeholders. The Omatalous magazine of-
insurance, consumer protection or other authorities. (PR10) fers tips for managing one’s personal ﬁnances and tries
to present complex ﬁnancing services in a simple man-
For the third time in a row, Tapiola was chosen as the most ner. The Yritystalous magazine presents new operating
trustworthy insurance company in the Trusted Brand Sur- methods to corporate decision-makers and tells about
vey conducted by Reader’s Digest in 2005. The survey trends in risk management, for example.
studied what brands Finns consider the most trustworthy
in 36 product categories. The study was conducted in 14
countries. In Finland, there were more than 1,600 respon- Customer beneﬁt policy
dents, which is a representative sample of all Finns. The
criteria for trustworthiness were: quality, advantageous Tapiola’s owner-customer beneﬁts make sense from the
price, strong product image and understanding the needs customer’s point of view: they are not just bulk discounts
of consumers. As a newcomer, Tapiola Bank did not yet but also reward the customer for carefulness and loy-
receive visibility in the bank category. alty, for example. Tapiola’s customer beneﬁt policy was
reformed in 2005. In the new policy, the customer ben-
The web pages of Tapiola were successful in the annual eﬁts are based on mutuality, where ﬁnancial beneﬁts
study of the Tietoviikko magazine, where the web pages are complemented by various service beneﬁts, and on
of the 250 biggest Finnish companies were studied. The loyalty, permanence and partnership. Furthermore, ze-
criteria used were company information, product informa- ro occurrence of damage and good proﬁtability, such as
tion, customer service, navigation, usability and orienta- voluntary damage prevention actions and care, are also
tion. The Tapiola web pages were the fourth best. In web taken into account.
page performance, we were in second place.
Share of customers in the proﬁt 2005
Communications to customers
The proﬁts from the operations of the Tapiola Group are
Many ﬁnancing sector services involve signiﬁcant com- used for customer bonuses and for developing products
munication responsibilities for the companies, which is and services that beneﬁt customers, and they are also used
why consumers may feel that they are being inundated to strengthen the company’s solvency, required to main-
with information. We do our best so that this amount of tain the company’s risk-carrying capacity. The amount of
information and the related accuracy requirements would discounts and no-claims bonuses paid was EUR 104.7
not prevent customers from understanding the informa- million, over EUR 16 million more than the year before.
tion they receive. (PR2) We are currently compiling a cus-
tomer relationship communications policy and starting an Beneﬁts to owner-customers (EUR million) 2005 2004
extensive development programme based on this policy. Discounts to owner-customers 77.0 66.2
- Tapiola General 39.3 35.1
The most important objective of the programme is mak-
- Tapiola Life 16.7 15.1
ing communication interactive so that it assists the cus- 21.0 16.0
- Tapiola Pension
tomers in the handling of their business. Loyalty discounts and similar 13.6 10.0
Service beneﬁts 0.9 0.9
Tapiola has improved the accuracy of customer informa- Beneﬁts paid to the customers
tion by offering training to the agents, compiling product via cooperation partners
speciﬁcations that explain the policy terms of the most Beneﬁts to owner-customers total 104.7 88.2
Saving Natural Resources
is Part of Daily Work
For Tapiola, environmental responsibility means effective Participation in supporting a project for the protection
and economical use of natural resources, risk manage- of Lake Matalajärvi in Espoo shows Tapiola’s willingness
ment and taking into account environmental issues in to bear its responsibility for the environment. The proj-
our daily operations and decision-making. The ﬁnancial ect is supervised by the Environmental Centre of Uusi-
sector is based on ofﬁce work and is thus not a signiﬁ- maa, and its objective is to protect Lake Matalajärvi and
cant polluter of the environment. Therefore, indirect im- restore it for recreational use. The lake belongs to the
pacts have more signiﬁcance than direct environmental Natura 2000 environmental protection network.
effects, such as taking care of the company’s real estate
assets in an environmentally friendly manner, adher-
ing to responsible investment principles and preventing Tapiola’s environmental objectives
environmental damage. 2004–2006
Tapiola promotes an environmentally friendly approach
among the clientele by offering damage prevention and Customers
environmental insurance services. About a dozen envi- Environmental services to match
ronmental risk surveys are conducted for corporate cus- the needs of customers.
tomers every year, and companies can also expand their
Processes, quality and efﬁciency
coverage with voluntary environmental insurance. Private
households and farmers receive environmental advice 1. Reduced environmental impacts due to real
mainly in writing. The specialised fund Tapiola Wellbe- estate owned by company and to ofﬁces
ing invests globally in sectors promoting the well-being of 2. Investment activity taking into account
people and the environment. The investments of the fund environmental values
focus on health care and environmental care technology
as well as on companies offering leisure products. 3. Environmental viewpoint taken into
account in processes
The environmental awareness of Tapiola’s employees is Personnel
systematically promoted by training and communica-
1. Competent and expert personnel
tions. Furthermore, all new employees are given a crash
course in environmental issues as part of the “Welcome 2. Functional and interactive
to Tapiola” course, and supplementary operating instruc- environmental communications
tions are issued. There is a separate section for environ-
mental activities in the Group’s internal communications Economy and market position
network, Ympäristö-Tasku. 1. Forerunner’s position in environmental responsibil-
ity discussion regarding the insurance and ﬁnanc-
2. Managing and monitoring environmental expenses
Tapiola’s Environmental Policy was updated and approved
by Group’s Boards of Directors in summer 2005.
Tapiola Environmental Policy 2005
Responsible management of environmental issues
refers to ethical and professional activity in line with
our values. For us, environmental responsibility
means effective and economical use of natural
resources, risk management and taking into account
environmental issues in our daily operations and
Internal inspectors Marko Tolonen (left) and Eija Mali studying
the Lake Matalajärvi protection plans presented by Licentiate in
Philosophy Jack Barckman.
Through our environmental activities we can partici-
pate in promoting sustainable development for a
safe, healthy and clean living environment. We
require that all employees of Tapiola take environ-
mental issues into account in their work and partici- Green Ofﬁce
pate in continuous improvement of our operations system and logo
according to our environmental objectives.
In April, Tapiola also joined the Green Ofﬁce Environ-
Our objective is to display exemplary activity and mental System of the World Wildlife Fund WWF. Tapiola’s
professionalism in environmental issues. head ofﬁce operations were included in the scope of the
In order to achieve this, we will system. WWF audited the Environmental Programme of
the head ofﬁce in August 2005 and granted the right to
• systematically and purposefully develop use the Green Ofﬁce logo. (PR6)
the environmental operations of Tapiola;
• take care of our personnel’s expertise in environ- Green Ofﬁce is different from other environmental sys-
mental issues and promote environmental aware- tems in that it has built-in networking with other Green
ness in the Environmental Team; Ofﬁces. Internal comparison within the network enables
the spread of good practices and improves management
• reduce the environmental impacts of our opera-
of environmental impacts. At the same time, Tapiola
tions in our working environment and when
managing our real estate assets; formed a long-term partnership with the WWF.
• evaluate investment targets also based on how well Green Ofﬁce motivates the personnel to do good ecological
they take into account environmental principles; deeds in their everyday life and raises their environmen-
• actively promote the environmental safety of our tal awareness. The environmental tips shared through the
customers by means of damage prevention and network support the training offered to the personnel.
environmental insurance services as well as offer
investment targets where environmental issues At the same time, Tapiola chose to end its membership
are taken into account; in the UNEP Environmental Commitment for the Insur-
• participate in discussions on environmental ance Industry because Tapiola felt that the beneﬁts of
responsibility in the insurance and ﬁnancing the programme in its new form did not match the costs
business and outside our sector. of the programme.
Tapiola committed to Sustainable
Tapiola’s environmental themes
Development Charter for Energy Savings Week
In April, Tapiola committed itself to the Business Char- In the autumn of 2005, Tapiola participated once
ter for Sustainable Development. The charter is an in- again in the Energy Savings Week arranged by
ternational, voluntary code of conduct with environmen- Motiva. During the week, information on the subject
tal leadership principles at its core. The International was offered every day in Tapiola’s internal data
Chamber of Commerce ICC published the principles for network, and an Energy Expert enquiry was arranged
the ﬁrst time in 1991. Thousands of companies have for the personnel. Prizes were rafﬂed among the
joined the charter, approximately 60 of them Finnish participants. Furthermore, the Tapiola Environmen-
tal Team arranged a daily changing exhibition at the
head ofﬁce, where the latest environmental themes
were presented. The themes included introduction
The central principles of the Business Charter are, for ex- of the Green Ofﬁce System, environmental issues
ample, that operations be continuously developed, com- in real estate operations, sorting of waste, energy-
munication regarding environmental issues be open and efﬁcient use of IT equipment and participation
employees be trained in a responsible manner. Further- of Tapiola in the rehabilitation of Lake Matalajärvi
more, environmental impacts must be taken into account in Espoo.
in product development, customers must be advised on
how to operate safely, there must be cooperation with
stakeholders and regular environmental reports must be
prepared. It is also important to prevent environmental
damage and use energy and raw materials in an effective
manner in order to lessen waste production and handle
waste management safely. In other words, the organisa-
tions should mainstream the environmental perspective
in all their business operations.
Real Estate Operations
Environmental Key Figures
In 2005, the value of the real estate owned by Tapiola to- Less than a half of Tapiola’s real estate assets are in-
talled approximately EUR 1.5 billion, with a surface area cluded in the scope of the KuluNet monitoring system.
of about 983,000 m2. When calculated based on cubic Comparable reductions in the consumption of heat, elec-
content, approximately 30% of the real estate property tricity and water for these properties were 5.8%, 0.2%
is included in the scope of the real estate and construc- and 16.3%, respectively.
tion industry energy savings contract KRESS.
Approximately half of the Tapiola properties are included kWh/m 3 Normalised consumption of heat for the real estate
in the scope of the consumption monitoring system Ku- 39
luNet, and all of the KRESS properties are being moni- 38
tored with the KuluNet system. Below are comments on 38.0
the results for those KuluNet properties for which com-
parable consumption monitoring data for 2001–2005 36 35.5
The normalised heat consumption for the KRESS proper- 34
ties, a total of 43.7 GWh (heat consumption 39.5 GWh), 33
has decreased by altogether 5.8% between 2001 and 32.5
32 32.4 32.2
2005. The decrease in speciﬁc heat consumption of 10%
set forth in the KRESS contract could not be reached. 31
However, the decrease in the speciﬁc heat consumption
of the comparable Tapiola real estate portfolio – 5.2% 2001 2002 2003 2004 2005
from the year 2001 to the year 2004 – was notably bet-
ter than the decrease in private sector speciﬁc consump- All real estate included in the KuluNet system KRESS real estate
tion (2.4%) stated in the Annual KRESS Report for 2004
published in 2005. Including information for 56 properties, of which 29 are
included in the KRESS contract. The share of this real estate
in all Tapiola real estate (m3) is 44% (KRESS real estate
The electricity consumption of the KRESS properties, a 33%). The average heat consumption for similar real estate is
total of 26.1 GWh, has decreased by 1.5% during the 24–47 kWh/m3 (KRESS real estate 20–44 kWh/m3).
same period of time, and water consumption, a total of
87,400 m3, by an excellent 21.2%. As regards electricity,
the objective of the KRESS contract is to decrease the
consumption level. The Tapiola Group had set 10% as the
ﬁve-year reduction objective for water consumption.
Environmental key ﬁgures for KRESS and KuluNet-monitored real estate (EN3, EN5)
Real estate Properties, Change
Cubic content, m3 2003 2004 2005
portfolio pcs 2001–2005
KRESS 29 1 356 631 46 047 40 798 39 492 -0.7%
KuluNet 56 1 810 345 68 730 64 245 63 947 -0.8%
KRESS 29 1 356 631 47 338 43 906 43 663 -5.4%
Norm. heat, MWh
KuluNet 56 1 810 345 68 730 64 245 63 947 -5.8%
KRESS 25 1 144 396 23 127 22 822 23 154 -1.5%
KuluNet 52 1 590 610 26 611 26 386 26 848 -0.2%
KRESS 28 1 244 611 95 134 88 503 87 384 -21.2%
KuluNet 56 1 695 538 239 908 226 337 219 252 -16.3%
kWh/m 3 Consumption of electricity l/m 3 Consumption of water
20 20.5 155
20.1 20.2 19.9 20.2 140 146 141
18 133 129
16 16.9 16.8 16.7 16.6 16.9
12 79 76
60 71 70
2001 2002 2003 2004 2005
All real estate included in the KuluNet system KRESS real estate
Including 52 properties, of which 25 are included in the 2001 2002 2003 2004 2005
KRESS contract. The share of this real estate in all Tapio-
la’s real estate (m3) is 39% (KRESS real estate 28%). The All real estate included in the KuluNet system KRESS real estate
average consumption of electricity for similar real estate is
8–40 kWh/m3 (KRESS real estate 10–46 kWh/m3). The con- Including 56 properties, of which 28 are included in the
sumption of electricity in some of the KRESS properties is KRESS contract. The share of this real estate in all Tapiola’s
monitored through a transformer, which makes the consump- real estate (m3) is 41% (KRESS real estate 30%). The av-
tion higher than the consumption in normal real estate. erage consumption of water for similar real estate is
112–242 l/m3 (KRESS real estate 68–187 l/m3).
New environmental programme for
real estate operations planned The following objectives were set forth
in the programme:
The Tapiola Real Estate Environmental Programme has • Reducing heat energy and water consumption
been in use for three years. In 2005, the programme was
• Managing consumption of electricity
updated and new objectives created under the heading
“Ofﬁce and Business Construction Environmental and Life • Making waste management more efﬁcient
Cycle Objectives 2005–2008”. The purpose of the pro- • Managing environmental risks
gramme is to direct the operations so that environmental • Learning about the needs of our customers in
issues will be a priority also when planning new buildings environmental issues.
in which the Tapiola Group is an investor or when making
repairs in real estate owned by the Tapiola Group. More speciﬁc objectives, measures and indicators will be
set for each of these objectives.
At the year-end, a draft for a new environmental programme
for 2006–2008 was prepared. The programme includes Furthermore, the Real Estate Unit’s instructions for plan-
identiﬁcation of the environmental impacts caused by land ning construction and maintenance services have been
use, the environmental load of building parts as well as the updated as regards environmental instructions for archi-
environmental impacts during use arising from buildings’ tects. The architects are required to calculate, for ex-
and their users’ energy and water consumption and waste ample, heat and electricity consumption already in the
generation. sketch designing phase.
Piloting sites for the PromisE environmental classiﬁca- Many contractors have already included recycling and
tion system during 2005 have been the Finnforest Mod- sorting of waste in their worksite waste management
ular Ofﬁce built in Espoo (photo) and a logistics centre policy. Our partners have environmental programmes of
under construction in Vantaa. In the PromisE classiﬁca- their own and persons in charge of environmental issues,
tion, the biggest environmental impacts of a real estate which means that the worksites of many of the contrac-
are evaluated according to the main categories in the tors comply with good environmental values.
classiﬁcation system, which are the health of the users,
consumption of natural resources, environmental impacts
and environmental risks.
An example is district cooling taken into use in some of
the Tapiola Group’s properties: this method of cooling
can reduce environmental noise and the use of agents
detrimental to the ozone layer. Furthermore, general
working site instructions have been applied in sites un-
Information about Atmospheric
Emissions Available for the First Time (EN8)
Most of the atmospheric emissions of the Tapiola Group commuting between the home and the ofﬁce caused CO2
are caused by production of electricity and heat energy emissions of approximately 1,290 tons in 2005. At pres-
for the real estate owned by the Group. The most impor- ent, the travelling monitoring system used by the Tapi-
tant source of atmospheric emissions in the Group’s own ola Group does not enable monitoring of carbon dioxide
operations is business travel. emissions caused by other means of transport.
The carbon dioxide emissions of the KRESS and Kulu-
Net properties presented above have been evaluated by CO2 emissions from real estate included in KuluNet
using a climate calculator created by TKK Dipoli, WWF monitoring system
Finland and Motiva Oy. It is also used in the Green Of- Thousand tons, CO2
ﬁce reporting on the operations of the Tapiola Group’s 25 000
head ofﬁce. When evaluating the emissions of the KRESS
and KuluNet properties, the average CO2 emissions pro- 20 000 20 069 20 855
19 944 19 797 19 822
ﬁle for Finnish electricity and district heating production 15 000
14 585 14 299 13 785 13 556
has been used. The energy production emissions of the 10 000
Tapiola Group’s head ofﬁce have been evaluated by us-
ing information received from the producers of electric- 5000
ity and district heating. 0
2001 2002 2003 2004 2005
In 2005, the CO2 emissions of all the Tapiola properties KRESS real estate
included in the KuluNet monitoring system were 19,822
All real estate included in the KuluNet system
tons. Seventy-three per cent of the emissions were caused
by heat consumption and the rest by the use of real es- A more extensive carbon dioxide emission proﬁle has been
tate electricity. compiled for the head ofﬁce operations as a part of the Green
Ofﬁce system reporting. In 2005, the carbon dioxide emis-
sions totalled 6,513 tons.
Environmental impacts of travelling
Business travel expenses for the Tapiola Group in 2005
were EUR 3.7 million, of which a little over half, or EUR
1.9 million, were caused by car use. Driving and the use
of company cars in the entire Group caused carbon diox-
ide emissions of 1,110 tons. The amount has decreased
by 3.4% when compared to 2004. It was estimated that
Environmental operation development stages 5. Future of environmental
4. Developing social
3. Developing external
environmental work 2002–2004
2. Establishing internal VISION:
environmental work 1999–2001 Tapiola
will be known
1. Starting environmental as an exemplary company.
Paper use in the Tapiola Group is being monitored for Ninety-ﬁve per cent of the printed products of the Tapiola
the head ofﬁce properties and for all of Tapiola. In 2005, Group are printed on paper that has been awarded the
paper use by the Tapiola Group totalled 576 tons, and Swan ecolabel. More than half of the soft tissue ordered
most of this came from mass printouts, customer mag- for the Tapiola Group head ofﬁce is manufactured of re-
azines, printed products and printouts from multifunc- cycled ﬁbres, and all the tissues have been awarded the
tional devices. Swan label, except for one special product.
Tapiola sent out approximately 23 sheets of mass print- Tons
outs per customer during the year. The relative number 160.0
has decreased by 11.2% since 2002. Total paper con- Entire Tapiola
sumption of the Tapiola Group in 2005 was approxi-
mately 680 g per customer. In 2005, approximately 48 120.0 121.6
sheets/person/working day were printed and copied us- 100.0
ing the multifunction devices. The relative amount has 99.4 99.6
decreased by 1.2% when compared to 2002.
In 2005, the Tapiola Group sent out a total of 12,326,880 54.7
postal items, of which 92% were customer letters or mag-
azines and the rest direct marketing letters. The ﬁgure
does not include postal items sent inside the Group. Each 0.0 s
customer of the Tapiola Group received approximately 13
– p rketi
postal items during the course of the year 2005.
Environmental Impacts of
Head Ofﬁce Operations
Until 2005, the Tapiola Group head ofﬁce operations the yard less slippery, and the need for cooling the ofﬁce
were located in four buildings in Espoo with a total cu- premises during the exceptionally hot summer of 2005.
bic content of 295,910 m3. In 2006, two more ofﬁces Since 2002, electricity consumption has lessened in one
were added. Heat consumption in the real estate in use property and increased in two properties. (EN3)
in 2005 was 7,163 MWh (7,940 MWh when normalised).
Normalised heat consumption has increased by a total of Water consumption in the head ofﬁce in 2005 was
7% since 2002. On the other hand, the consumption has 20,369 m3, showing an increase of 1.4% when com-
remained at approximately the same level as in 2001. pared to 2002 but a decrease of approximately 6% com-
The objective set in the Head Ofﬁce Environmental Pro- pared to 2001. In 2002, water consumption was reduced
gramme for 2002–2006 –an annual decrease of 1% in because the restaurant in the head ofﬁce building was
heat consumption –has not been reached. closed during a major renovation. The objective set for
the head ofﬁce, an annual decrease of 1% in water con-
Total consumption of electricity in the same buildings sumption, has been reached. (EN5)
in the premises managed by Tapiola in 2005 was 7,844
MWh. Comparable data on the development of electricity A total of 135 tons of paper waste was collected in the
consumption in these properties is available for 2003– head ofﬁce in 2005. The amount of paper waste has
2005: during this time, the consumption of electricity been notably reduced: by 23.8% when compared to
increased by 4.5%. The most signiﬁcant factors that in- 2002, despite the fact that the number of personnel
creased electricity consumption during the period in ques- and of customers has increased markedly. The reduction
tion were the electrical heating installed under the head in the amount of paper waste can be explained by the
ofﬁce building’s yard slab at the end of 2003 to make fact that the departments have reduced their archives as
they have moved within the head ofﬁce buildings during CO2 proﬁle for the head ofﬁce operations in 2005 (tons)
Comparable ﬁgures for other waste types are available for
the head ofﬁce building, where approximately half of the Paper
head ofﬁce personnel work, or a total of approximately consumption Electricity
1 161 consumption
960 persons. In 2005, a total of 286 tons of waste was Letter
transportation 310 1 780
created in the head ofﬁce building, of which at least
62.8% was utilised as raw material. The total utilisa-
tion level for waste was 91.5%, also including utilisa- home and office
tion as an energy source. The total utilisation level has 901
increased by almost one percentage unit since 2002. Heat consumption
The total amount of waste has decreased by 8.7% when 2 220
compared to 2001.
The waste management partner used in the head ofﬁce
operations was changed in the beginning of 2005. Due
to reporting changes made when the partner changed,
we present below comparable total waste amounts and Development of head ofﬁce waste amount
utilisation levels for 2001–2005.
Information security paper
Energy consumption in the head ofﬁce real estate 61.7 Metal
35 Energy waste
30 30,0 30,6 20.1 Grease trap waste
26,4 65.3 Mixed waste
25 26,9 26,8 26,5
24,9 25,1 25,4 24,9 24,2 16.6 Other hazardous waste
20 24,6 3.7 7.7
2001 2002 2003 2004 2005
Development of head ofﬁce waste amount and waste
Heat, kWh/m3 Heat (norm.), kWh/m3
Water consumption in the head ofﬁce real estate 70
l/m3 60 63.9 65.3 63.1
40 347 345 400
70 70.2 70.7 286
68 68.8 25.4 26.3 27.0 28.7
20 23.4 200
66 10 100
64 0 0
2001 2002 2003 2004 2005
Used as energy Used as raw material
2001 2002 2003 2004 2005 Development of amounts of waste
Some of the ﬁnancial information in this report has been lations with various stakeholders and those factors that
audited, and various other methods were used to conﬁrm genuinely reﬂect the health of the business operations,
the authenticity of the rest of the information. The con- taking into account all the different sectors impacted by
tents of this report have been checked and approved by the business operations, the key ﬁgures recommended
the Group’s Boards of Directors. The report manuscript in the third GRI version cannot be deemed satisfacto-
was discussed in a joint meeting of the Boards of Direc- ry. Tapiola participates in a project by the international
tors on 4 April 2006. association of mutual insurance companies AISAM on
application of the GRI recommendations by mutual in-
surance companies. Furthermore, Tapiola has its own
Internal Audit supports realisation of projects underway to develop operations and reporting.
social responsibility For example, we believe that the training impact index
describes how well we take care of the expertise of our
The Internal Audit of the Tapiola Group is a function of personnel more accurately than the number of training
the Group responsible for independent and objective eval- days. The index will be taken into use in 2007.
uation and certiﬁcation of the business operations. The
Internal Audit Operation Plan for 2006 includes tasks As we transfer to the new GRI arrangement, we will con-
related to certifying and developing the Social Respon- tinue to develop our reporting process as well. The So-
sibility Report. These actions will, for their part, ensure cial Responsibility Committee will be made into a more
the accuracy of the Social Responsibility Report and active committee whose rules of procedure will be pre-
evaluate realisation of the social responsibility principles sented to the joint meeting of the Boards of Directors
in the Group. Realisation of the internal audit and risk for approval in June 2006. A Social Responsibility Prin-
management are studied in particular. ciples and Tapiola Values Recap Discussion is planned
for the future. The objective is to include these issues
At present, at the time of completion of this report, the in the Internal Communications Programme for the new
Internal Audit personnel are being trained in special is- strategic period.
sues related to certiﬁcation of the Social Responsibility
Report. The objective is for auditing of the social respon- The ﬁrst social responsibility self-evaluation conducted
sibility of the various functions to be part of the normal at the turn of the year under the supervision of consul-
operations of the internal audit. tants produced valuable development ideas concerning
the content of the report. These ideas will be taken into
account when compiling the next report. For example,
Proceeding towards external more contributions are required to intensify equality work,
certiﬁcation appreciate versatility and develop a working environment
that encourages innovation.
In the next few years, the objective is to have the Social
Responsibility Report certiﬁed by an external party. We In the early summer of 2006, a comparison analysis with
are preparing for this with the support of Internal Audit the best practices of the ﬁnancing industry and this re-
and by means of various development projects. port will be made.
The third version of the Global Reporting Initiative (GRI)
will be ﬁnished at the end of the year 2006. Since the
purpose of the report is to describe the company’s re-
Tapiola Group 51
Comparison with Global Reporting Initiative
Reporting Recommendation (4.1.)
The Tapiola Group Social Responsibility Report 2005 follows the GRI recommendation where applicable.
Abbreviations in the Handled column: K = Yes, E = No, O = Partially.
ID GRI key ﬁgure Handled p. Comments
Vision and strategy
1.1. Sustainable development vision K, 10
1.2. Review by the President K, 3
Description of Tapiola organisation
2.1. - 2.8. Basic information about company K, 6, 39
2.9. Stakeholders K, 22-23
Scope of report
2.10. Contact information for issuer of report K, back cover
2.11. Reporting period K, 2
2.12. Previous report K, 2
2.13.-2.16. Limitations to the content of the report K, 6, 25
2.17. Adherence to the GRI K, 2
2.18. Criteria for cost/beneﬁt calculations E Analyses have not been made.
2.19. Substantial changes in calculation methods K, 2 No changes.
2.20.-2.21. External and internal certiﬁcation principles K, 2
2.22. Receiving additional information K, 2
3.1.-3.2. Organisation and management structure K, 8, 9
3.3.-3.4. Operating processes in management of social responsibility K, 11
3.5. Impacts of social responsibility on management merit pay K, 10
3.6. Persons in charge K, 11
3.7. Mission, values, operating principles K, 10
3.8. Shareholders’ initiative system K, 8
3.9.-3.12 Interaction with stakeholders K, 17-24
3.13. Adherence to caution principle K, 9
3.14. Commitment to external initiatives and principles K, 13
3.15. Memberships in organisations K, 14
Financial service products are
3.16.-3.17. Management of product chains, indirect impacts O, 20, 30
3.18. Changes in operations E Nothing to report.
3.19.-3.20. Management system, certiﬁcation K, 13
4.1. Comparison with GRI recommendation content index K, 52-53
Financial responsibility key ﬁgures
EC1 Turnover K, 7, 27 Social distribution of income
EC2 Geographical market distribution K, 26-27
EC3 Purchases of services and goods K, 30
EC4 Adherence to payment deadlines K, 30
EC5 Personnel expenses K, 38
There are no capital investors
EC6 Distribution of proﬁt to capital investors E
in a mutual insurance company.
EC7 Proﬁt or loss at end of reporting period K, 24 Social distribution of income
EC8 Taxes paid K, 24 Social distribution of income
EC9 Financial support received E There are none.
EC10 Support for purposes of public good K, 19
EC13 Indirect ﬁnancial impacts O, 21
Environmental responsibility key ﬁgures
EN1 Use of materials E Service company
External waste cannot be
EN2 Utilisation of external waste E
utilised in this sector.
EN3+4 Energy consumption K, 46, 49
EN5 Water consumption K, 46, 49
The main business sector does
not have such impacts.
EN6 ja 7 Impacts connected with biodiversity E
Statistics in the real estate opera-
tions are being developed.
EN8 Greenhouse gas emissions K, 48
EN9+10 Emissions causing ozone depletion, acidiﬁcation E
EN11 Waste K, 49
EN12+13 Emissions to water; chemical, oil, etc. leaks E None.
Environmental impacts of products, reuse percentage units There are none in a service
EN16 Environmental damage and ﬁnes paid E None.
EN17 Programmes to improve energy efﬁciency E
Only CO2 emissions are given
EN19 Other indirect consumption of energy, e.g., travel E
Social responsibility key ﬁgures
LA1+2 Personnel statistics K, 31-32
LA3+4 Membership in professional organisations, negotiation mechanisms K, 33-34
LA5-8 Occupational safety and health K, 33-35
A training impact index will be
LA9 Training K, 37
taken into use in 2006.
LA10+11 Equality, gender distribution in management K, 33
LA12 Voluntary work relationship beneﬁts K, 34
LA13 Representation of employees in management K, 33
There is none because no employ-
Further training programme in case of termination of employment
LA16 K, 33 ment relationships have been
LA17 Lifelong learning K, 33
Not signiﬁcant in
HR1-7 Human right issues E
the Finnish market.
SO1 Operations in neighbouring communities and dialogue with stake- K, 20
SO2 Attitude towards bribery K, 15
SO3 Attitude towards politics K, 15
SO4 Recognitions received K, 15, 31
SO5 Aid for political activity K, 15
SO6-7 Violations related to competition and pricing E There are none.
PR1 Customer health and safety policy K, 39
PR2 Policy regarding product information K, 43
PR3 Protection of privacy K, 39
Violations of regulations regarding health and safety of customers,
PR4-5 K, 39 There are none.
PR6 Recognitions received K, 39, 45
PR8 Customer satisfaction issues K, 42
PR9 Advertising regulations K, 43
PR10 Violations regarding advertising and market regulation K, 43 There are none.
Appendices: Key ﬁgures
Customers’ assets managed by the Tapiola Group 1997–2005
EUR billion 15
1997 1998 1999 2000 2001 2002 2003 2004 2005
of the Group 1.9 2.2 2.5 2.8 3.0 3.3 3.7 4.3 4.9
Tapiola Pension 3.1 3.4 3.7 4.1 4.5 4.8 5.3 5.7 6.2
The assets of customers managed by the Tapiola Group have more than doubled over the past decade. The ﬁgure includes as-
sets in asset management and outside assets invested in the fund management company funds as well as customers’ assets
included in the technical provisions of the companies.
Strategy Work Coordination Committee 3 April 2006 Strategy Work Coordination Committee 3 April 2006
Tapiola Group Tapiola Group Companies (Y)
Household customers, Most important key figures 2000–2005
most important key figures 2000–2004
2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005
Market coverage, % 26.6 26.9 27.0 27.5 27.8 32.1 41.0 42.3 44.1 43.5
Market coverage, % (Y+F)
18.2 19.7 21.3 22.0 22.3 24.9
level, at least 3 baskets, % Customer relationship
level, at least 3 baskets, %
29.5 36.5 39.4 49.5 52.4 51.9
7.3 8.2 9.0
level. at least 4 baskets, %
Service grade, percentage level, at least 4 baskets, %
32.0 34.0 35.0 31.0 32.0 42.0
of commendable evaluations
Service grade, percentage
of commendable evaluations
45 49 33 33 33 33
Market coverage, %, share of Tapiola customers among all households Market coverage for 2005 will be available in July. Market coverage = Including both F and Y sector customers. Market coverage for 2005 will be available in 2007.
Customer relationship level, %, up to 2004 customers with at least 3 baskets, since 2004 with at least 4 baskets Customer relationship level, %, up to 2004 customers with at least 3 baskets, since 2004 with at least 4 baskets.
The customer relationship levels of 2004–2005 are not entirely comparable with the previous years due to changes in customer group definitions.
Strategy Work Coordination Committee 3 April 2006 Strategy Work Coordination Committee 3 April 2006
Tapiola-ryhmä Savings and investments, development
Corporate customers (F) 1997–2005
1 000 persons
1997 1998 1999 2000 2001 2002 2003 2004 2005
Savings and investments from 13.0 9.0 10.0 12.0 18.0 15.5 18.2 15.4 19.6
customers at Tapiola, development
70.0 Financing property of households, 6.0 11.0 34.0 0.0 -4.8 2.0 7.5 4.5 20.5
2002 2003 2004 2005 development
Entrepreneurs (F) 80.5 81.7 88.7 90.3
(* Statistical clarification 2001, the previous years not entirely comparable.
54 Tapiola Group
Strategy Work Coordination Committee 3 April 2006 Strategy Work Coordination Committee 3 April 2006
Tapiola Bank Tapiola Group
Deposits and credits capital Number of personnel
12/2003 6/2004 12/2004 6/2005 12/2005 0
2000 2001 2002 2003 2004 2005
21.7 82.6 156.5 161.2 261.0 Number of personnel,
persons, incl. persons 2192 2319 2446 2517 2586 2730
10.3 32.8 173.3 158.8 298.0 on holiday without pay
Social Responsibility Committee (2.22)
Markku Kosola, Director (Social Relations), chairperson
Markku Haapalainen, Assistant Director (Regional Operations Executive Team)
Kaisu Holopainen, Corporate Brand Director
Sirpa Kaisanlahti, Personnel Director
Heikki Kanniainen, Elected Representative (Sales Personnel)
Iiro Ketola, Elected Representative (Ofﬁce Personnel)
Pekka Killström, Controller (Financial Management)
Mikko Koskensyrjä, Risk Manager (Environmental Issues)
Harri Lauslahti, Managing Director (Tapiola Bank)
Arja Suomi, CSR coordinator (Social Relations), presenting secretary
Ulla Tujunen, Assistant Director (Information Services)
E-mail addresses are in the form forename.surname@tapiola.ﬁ.
This report has been edited by Arja Suomi. Layout and
illustrations made in the Tapiola Group Marketing Services
Studio. Layout: Iris Kieme. Graphics: Artto Lauri.
This document was translated by Lionbridge Oy.
Published by: (2.10.) Tapiola Group
Tapiola Group 55
FIN-02010 TAPIOLA, Finland
Street address: Revontulentie 7, Tapiola, Espoo, Finland
Tel. +358 (0)9 4531 exchange
Web pages: www.tapiola.ﬁ