Czech insurers: The phenomenon of insurance fraud is growing every year

18 February 2021 — Andrei Victor
The members of Czech Insurance Association (CAP) announced that during last year they inspected a total of 9,362 suspicious insurance caim files, 14% more y-o-y, detecting insurance fraud in total amount of CZK 1.23 billion (~EUR 48 million) , 8.7% more y-o-y.

At the same time, the average amount of detected fraud in insurance increased significantly, "by about a quarter reaching almost CZK 290 k (~EUR 10 k)", as CAP members mentioned in a statement.

CAP mentioned, the largest share of fraud in insurance (60%) was detected in property and liability insurance, insurers saving CZK 740 million (vs. CZK 630 million in 2019). At the same time, about 29% of saved amount was related to motor insurance (CZK 360 million, vs CZK 340 million in 2019), the remaining 11% being accounted by personal insurance lines: CZK 130 million (vs CZK 165 million a year before).

In the Czech Republic, insurance fraud has been a criminal offense for 23 years (since 1 January 1998) and threatens up to 10 years in prison.

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