Increasingly sophisticated insurance fraud procedures are challenging insurers, but at the same time their detection capacity has significantly improved due to better tools to risky behavior for insurance fraud identification not only reactively, at the stage of the insured event, but already in the stage of entering insurance. Thanks to this strengthening preventive effect, the number of insurance frauds is declining, as a fraudulent insured event will not even occur in the case of a functioning prevention of access to insurance.
"The decisive volume (55%) of the total proven amount of insurance fraud is attributable to the property and liability insurance industry, where insurers saved CZK 630 million (in 2010 it was CZK 850 million). Thirty percent of the total volume is attributable to car insurance (CZK 340 million of fraud detected in 2019, compared to CZK 260 million in 2018); the remaining 15% of the total amount of detected insurance fraud occurs in the insurance of persons, which is 165 million CZK (in 2018 it was 187 million CZK)," says the head analyst of CAP Petr JEDLICKA.
"The volume of insurance fraud detected has thus increased in the vehicle insurance industry. Despite a significant decline in the number of cases under review for personal insurance, the value of proven insurance fraud did not decrease so significantly, reaching CZK 165 million in personal insurance in 2019 (compared to CZK 202 million in 2016); for car insurance, the amount of fraud proven amounted to CZK 341 million, which, after all, was the highest figure in the last four years. Only in the area of property and liability insurance did the record result of detected frauds for 2018 (in the amount of CZK 851 million) not be repeated, the revealed value of 2019 in the amount of CZK 626 million corresponding to the usual situation of 2015 to 2017," adds Petr JEDLICKA.
All investigated cases of insurance fraud in specified branches of insurance (2019):
So far, the average amount of the case of proven insurance fraud has stabilized to CZK 230,000 after an increase in the average amount of insurance fraud detected compared to previous years.