Elena Wallėn Bjorkenang
Mid Sweden University
Ron Fry
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Skandia is a mutually owned company that provides pensions, mutual funds, health insurance and banking services for Nordic countries. Skandia's purpose is to create better lives for its customers and society.
In 2002, Sweden had the highest sick-leave per capita rate in the world, thanks in part to its stagnant work culture, where job security and strong labor laws mean people stay put despite being unhappy or stressed out at work. Some 70% of those on leave suffered from psychiatric ailments.
This trend was costing Skandia two billion Swedish Krona per year, a number so significant it prompted the company to figure out how to prevent people from getting sick in the first place. Skandia piloted and then added a free prehab (preventative) insurance product. A four level model was introduced linking the state of health of the employees with diverse support, actions and tools for each level. Some examples: private, faster alternatives to health care, preventive care and training, health controls, health coaching and access to work-out. Kajsa says that "the colleagues involved, and Skandia as an organization, showed and hold a great deal of courage in realizing new ideas."
In 2006, Skandia opened a hotline, where people insured by Skandia through an employer, could report illnesses and receive treatment—from nurses, physical therapists, ergonomic specialists—anonymously and free of charge. It also urged companies to improve workplace health by questioning employees covered by its policies about their on-the-job experience and providing employers with the feedback. Ten years on, the rate of sick leave among Skandia policyholders has dropped from by more than half, to 2.0%, allowing the company to cut its premiums by 80%.
Kajsa believes that in the future--2026--the number of sick people and associated costs will continues to decrease.
Skandia has historically met increased costs related to insurance with educating the people and organizations involved, e.g. training in good driving behaviors to decrease costs due to car accidents and training fire fighters how to be preventive and reduce costs due to fires.
As a result of research, Skandia realized the need to focus help on early stages, before employees got ill.
Providing a free prehab (preventative) insurance that links an employees state of health with diverse support to their existing insurance products.
Skandia invented a calculation tool for how companies and public actors can estimate the cost of illness. This digital tool is available free of charge on their website and can also be used by individuals. It is often used as support when setting baselines for initiatives in this area.
Other strong products and partnerships, like “Ideas for life”, is a guiding star for others to follow, both social entrepreneurs and companies. Skandia keeps on trying new things and has well-known scientists and researchers linked to them. “We do good for the world!”
Important values in the company's "DNA" are to prevent, predict and "thinking one step ahead."
Employees have shown and held "a great deal of courage in realizing new ideas."
Importance of being creative and thinking outside the box.
Skandia, known as the first Shared Value company in Sweden, has recently gotten a lot of attention from researchers at Harvard University's Foundation Strategy Group which has nominated Skandia as a Shared Value company – creating shared value in Sweden’s financial sector. Skandia is used as a reference case in education at Harvard. (Harvard contributes new methods which are changing school systems.)
The Skandia brand is connected to always placing customers at the center. As a company they are never satisfied, continue to drive innovation, being unique and put pride in doing good for their customers.
It is proven that the mutual corporate form is successful; it involves and engages customers and brings a collective impact. This way of working is spread over the globe, inspiring others and legislation has been changed so that other businesses can choose to be a mutual company. For Skandia’s customers it means that they can choose to participate and be involved in doing good at the same time as it brings them security and a good pension.
The introduction of the free prehab-insurance (in 2006) was proven to be very successful and with clear measurable effects for individuals, participating companies, society and Skandia.
· 8 of 10 employees now receive help before there is a need to go on sick-leave
· Over 50% decrease of number of sick-leave days
· Over 80% lower premiums for participating companies
· Decreased burden on public health care
· Decreased payments of premiums from Skandia to individuals/companies
In August 2016, Fortune Magazine published its annual ranking, "Fortune’s Change the World List" and this year, Skandia enters the list ranking 20th of 50 global companies. Skandia is the only Swedish company on the list. The motivation from Fortune: Slashing costs by nipping job stress in the bud.
Kajsa is emphasizing that Skandia is not only aiming at doing good for society but all initiatives have a very strong link to Skandia’s business goals and aim to give revenue back to their customers. This is a common theme in all their business areas, and there are many other initiatives similar to this. Skandia always strives to be innovative, making investments in infrastructure and assets profitable to business, environment and society. As a mutual company they can think and act with long-term goals.
Part of the surplus from this innovation is invested back into more research in the health area. This has been an important part to Skandia for a long time and they have also invented a calculation tool for how companies and public actors can estimate the cost for ill/sickness. This digital tool is available, free of charge on their website, and can also be used by individuals. It is often used as support when setting baselines for initiatives in this area.
Part of the financial surplus from this prehab insurance innovation is invested back into more research in the health area. This reinvestment has been an important practice at Skandia for a long time.
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Kajsa Nordborg, Head of Customer Influence
