It is noted that payments for non-material damage are also growing due to a 7.5% increase in wages.
The total number of claims also increased in 2024. There were 249,000 claims in 2022 and 259,000 in 2023, this year, the number of insurance cases settled under compulsory insurance is expected to reach 269,000, which represents an increase of 4%.
At the same time, following a previous y-o-y increase in the number of health claims between 2022 and 2023 of 10.6%, this year's estimated number of 11,802 health claims is only 1% higher than in 2023, which represents stagnation. Approximately 91% of these claims arise from a minor injury, 7.1% are related to serious injuries in traffic accidents, and 1.9% of all health damages are claims related to death of victims. "The share of serious injury claims in the total liability health claims is gradually decreasing. Also, in 2024, there will be fewer insured events associated with serious injury and death", said Petr Jedlička, actuary of the Czech Office of Insurers.
Insurance companies expect higher claims due to claims inflation – in 2024 total payments are expected to be at CZK 17.9 billion/~EUR 0.71 billion (vs CZK 16.7 billion in 2023 and CZK 14.9 billion in 2022). In addition, liabilities associated with long-term payments, especially for health damage, are expected to amount to CZK 2.2 billion in 2024, which exceeds the pre-Covid 2019 level of CZK 2 billion and is mainly due to claim inflation.
The Czech Office of Insurers added that the total number of insured vehicles of all types and categories with a valid insurance contract exceeded 9.57 million vehicles in the second half of 2024. The y-o-y growth of the entire insured portfolio reaches approx. 2.9%, which confirms that the situation is stabilizing against the previous turbulence in its growth, according to the statement.
*EUR 1 = CZK 25.26 (as of Nov 17, 2024)
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