Insurance compensation is paid out for damages that can occur, such as car accidents, water leaks in the home, or theft incidents. Compensation may also be paid out if a person experiences illness or an accident that affects their ability to work and earn income.
In total, nearly 61 billion SEK was paid out in compensation for damages in 2022. More than half (58 per cent) of the compensation was for damages that occurred in 2022, while the remainder was for damages that occurred in previous years. The reason for the delay in payments is that certain types of damages, such as some fire and traffic damages, can take a long time to investigate. Another explanation is that claims for damages sometimes arise sometime after the actual occurrence of the damage. Compensation for damages can also be paid out as annuities over a long period for individuals who have suffered a loss of work capacity due to, for example, a traffic accident or work-related injury. Annuities compensate for future income losses.
The largest portion of the payments in 2022 was for damages related to motor vehicle and third-party liability insurance. These damages accounted for nearly one-third (32 per cent) of the total compensation paid out. This was followed by damages related to home and houseowner insurance (18 per cent) and damages within business and real property insurance (17 per cent). Damages within sickness, accident, and healthcare insurance accounted for 7 per cent, as did damages within other property insurance (such as boat, animal, and product insurance). A total of 10.2 billion SEK was paid out to companies, while the remaining compensation of 50.7 billion SEK was paid out to households and individuals.
Over the past three years, payments have decreased due to a decrease in the number of claims, primarily during the pandemic. It was particularly claims for the travel coverage of home and houseowner insurance, as well as claims for motor vehicle and third-party liability insurance, that decreased during this period.
