Insurance fraud in Sweden

In recent years, organized crime has increasingly targeted compensation from public welfare systems and insurance companies. As a result, the insurance industry has intensified its efforts to combat insurance fraud. Each year, insurance companies decline to pay out claims worth over half a billion kronor after conducting fraud investigations. Unfortunately, insurance fraud is a crime with a high level of unreported cases. Swedish non-life insurance companies handle over 3 million claims annually and pay out approximately 70 billion kronor in compensation to their customers. It is roughly estimated that insurance fraud accounts for at least 5-10 percent of these payouts, equating to about 3.5-7 billion kronor.

What is Insurance Fraud?

Here are some examples of what insurance fraud can involve:

• Exaggerated Claims: When someone deliberately inflates the value of stolen or damaged items to receive a higher payout.
• False Information: Providing incorrect information intentionally when taking out an insurance policy.
• Mobile Fraud: Intentionally damaging a mobile phone to use the insurance payout to buy a newer model.
• Staged Accidents: Setting up a car accident with a broken vehicle that cannot be sold, to claim insurance money.
• Lying About Medical Treatment: Traveling abroad for cosmetic surgery and getting the clinic to state on the receipt that it was an emergency medical treatment during a vacation.
• Deliberately Lowering Premiums: Not accurately describing one’s insurance history or behavior to receive a lower premium than warranted by the actual risk.

Statistics on insurance fraud in Sweden (2023)

• SEK 70 bn of non-life claims paid
• > 3 million claims settled
• 9970 fraud investigations
• 68 mn EUR of claims denied after fraud investigation
• 665 cases of insurance fraud reported to police
• Tip of the ice berg: Estimates indicate that fraud amounts to 5 – 10% of claim payments.
• Appr. 170 investigators working with unclear insurance cases and suspected insurance fraud. 
• The majority of the investigators have a police background.
• 9979 suspected fraud investigations were conducted in 2023.
• Guidelines for investigations.