The rate of payment defaults has increased in the last few years. The Insurance Contract Act was amended in 2010 in order to prevent insurance applications from being rejected solely on the basis of the applicant’s public credit records, which are available from the public data registry. Such a rejection is acceptable only if the insurer can objectively assess that the applicant is likely to default on its payments in future.
Partners Matti Komonen and Herman Ljungberg at Hammarström Puhakka Partners, Attorneys Ltd, have written an update on this matter. The update titled “Poor credit history as an obstacle to obtaining insurance” has been published in the International Law Office’s newsletter on 12 June 2012.