Friday March 01, 2024

Health, travel insurances pay more compensation in 2023: OP

Published : 09 Feb 2024, 03:40

Updated : 09 Feb 2024, 03:43

  DF Report

The amount of compensation paid from health insurance and travel insurance increased in 2023 compared to the previous year, said OP Financial Group in a press release on Thursday.

In the tightening economic situation, compensation has been claimed for property damage of lower monetary value than before.

After the pandemic years, the amount of compensation paid by Pohjola Insurance has returned to its previous level of over a billion euros.

Pohjola Insurance paid a total of 1.2 billion euros in claims last year and 94 per cent of reported losses were compensated.

“2023 was the first year we were no longer living under the exceptional period caused by Covid-19. In addition, the general economic situation has been echoed in the customers' behaviour: travel has increased, but property damage claims show signs of the tightening of the economic situation of households. Cooperation with our partners plays a significant role in loss situations – for example, the Pohjola Health Advisor service has been in increasingly active use,” said Sari Styrman, Pohjola Insurance’s Director of Claims.

The use of health insurance policies has remained active throughout the year, and the amount of paid compensation has increased by 36 per cent compared to 2022.

Based on paid claims, the flu season has been exceptionally bad. The amount of compensation paid for flu claims grew by as much as 51 per cent.

The amount of compensation paid for travel loss claims has increased by more than a quarter – Spain especially is highlighted in paid claims

The amount of compensation paid from travel insurance increased by 28 per cent compared to 2022.

The share of similar claims that took place in Spain has become higher than it was before the pandemic.

“Spain is a popular travel destination that sees the most losses of all countries. What is interesting is that losses occur in Spain even outside the typical holiday seasons. That means that the popularity of the destination is increasingly visible throughout the year,” said Styrman.

The loss statistics show that after Spain, the most travel losses occur in Finland and Southern neighbour, Estonia, whereas other countries' share of the losses has decreased.

Property damage statistics show that the number of losses has increased, while the amount of paid compensation has remained somewhat unchanged.

For example, people are currently claiming compensation from home insurance for smaller losses than before.

“Presumably, people are claiming compensation for losses they might have ignored in a better financial situation,” said Styrman.

The year has also been exceptional in terms of major losses suffered by large companies, amounting to 300,000 euros.

“It's great that the number of major losses has remained small. Major losses always have a large effect on daily work at the company, and such losses can even temporarily interrupt business operations,” said Styrman.