The number of insurance frauds increased during 2022, according to the figures published by the Czech Insurance Association (CAP). The professional association of Czech insurers informed that during last year, it inspected a total of 13,820 suspected claim files, up by 21% y-o-y, the aggregate value of detected fraud totaling CZK 1.42 billion - or ~EUR 59 million (up by CZK 173 million, or by 14% y-o-y). The average amount of detected fraud / claim file reached CZK 231 thousand (vs CZK 249 thousand in 2021 or CZK 288 thousand in 2020).

In property-liability insurance, the number of investigated claim files increased from about 3,000 in 2020 and almost 3,600 in 2021 to 4000 in 2022. A similar increase occurred in motor insurance where Czech insurer inspected about 6600 last year vs. 5700 in 2021and 4700 in 2020.

"The largest volume of proven insurance fraud was in property and liability sector, where insurers saved about CZK 840 million in 2021 vs CZK 740 million in 2020. Furthermore, 22% of total volume was accounted by motor insurance (CZK 279 million in 2021 vs CZK 360 million in 2020). The remaining 11% of total amount of detected insurance fraud occurred in personal insurance: CZK 130 million, a value comparable to 2020", said Petr JEDLICKA, CAP Analyst.

"In 2022, more than half (55%) of the total proven amount of insurance fraud falls on the property and liability insurance industry, where insurers saved CZK 788 million (in 2021, it was CZK 840 million). Furthermore, 31% of the entire volume is accounted for by motor insurance (this is CZK 434 million of detected fraud in 2022, whereas in 2021 it was only CZK 279 million). The remaining 14% of the total amount of revealed insurance fraud occurs in personal insurance, where it is CZK 200 million, which represents a significant increase compared to 2021 with CZK 130 million", said Petr JEDLICKA, CAP Analyst.

"The volume of revealed insurance fraud thus increased in both personal insurance and motor insurance, coincidentally in both segments year-on-year by approx. 55%.

In the case of property and liability insurance, despite the continued increase in detected insurance fraud, there was a decrease in the total detected volume, which is related to the decrease in the average amount of one proven case from CZK 493,000 in 2021 to CZK 391,000 CZK in 2022.

In the case of motor insurance, there is a year-on-year increase in the average amount of detected insurance fraud by a high 32% from CZK 116 thousand to CZK 153 thousand, when year-on-year insurance companies were able to increase the number of detected frauds from 2,401 to 2,833, i.e. by 18%, and their volume even increased by 56% from CZK 279 million to CZK 434 million", pointed out the CAP representative.