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Payments of claims incurred are increasing

Insurance companies pay out compensation for claims that may arise for example in connection with a car accident, a water leak in the home or theft. A person may also be indemnified if they fall ill or have an accident that affects their working capacity and ability to earn an income.

In 2019 just over SEK 68 billion was paid by insurance companies for claims incurred. More than half of these payments were for claims occurring in 2019, while the other half was for claims occurring in previous years. The reason for the delay is partly that some types of claim, such as some fire and traffic claims, may take a long time to investigate, and partly that claims are occasionally made some time after the damage occurred. Compensation may also be paid in the form of an annuity for a person who suffers impaired working capacity due to a traffic injury or occupational injury. The annuity is to compensate for future loss of income and is paid out over a long period of time.

The largest part of the compensation paid in 2019 was for claims linked to motor third party liability insurance and motor vehicle insurance. These claims accounted for more than a quarter (27 per cent) of the compensation paid. After this came claims linked to home and house insurance (15 per cent) and sickness, healthcare and accident insurance (14 per cent). Compen­sation is also paid to businesses for various business insurance and property insurance claims. Compensation to businesses made up 14 per cent of the total paid out in 2019. The remainder was paid to households.