More Swedes buying private insurance: report

More and more Swedes are purchasing private insurance for income protection as a result of the economic crisis.

The number who have chosen to supplement unemployment insurance with private insurance has increased from 18 to 32 percent in the last year, according to a study from Synovate for the Folksam insurance company.

The number of people signing up for private health insurance has also increased from last year, from 32 to 25 percent, according to Folksam’s annual report “Welfare trends” (Välfärdstendenser), presented on Monday in the Dagens Nyheter newspaper.

The study also shows that almost half of those interviewed fear that they won’t be able to maintain their standard of living if they become unable to work due to illness for more than six months.

In the report, Folksam’s welfare analyst Håkan Svärdman said that it isn’t surprising that more and more are signing up for private insurance in order to maintain their standard of living when it’s becoming increasingly difficult to seek support from the social insurance system at the same time benefit levels are being reduced.

The Synovate study was done between 16 April and 12 May and is based on interviews with 2,521 employed individuals between the ages of 18 and 25.

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