HGK: Companies Invest More in Car Insurance than in Their Employees

Business entities in Croatia invest more in car insurance than in the insurance of their employees, and only a few companies have insurance against financial losses due to business interruption or cyber insurance, according to research results presented on Tuesday at HGK.

The research on the knowledge and use of insurance among business entities was conducted for the Croatian Chamber of Economy (HGK) by Ipsos agency in February this year on a sample of 202 companies.

Vanja Dominović, head of the department for financial institutions and macroeconomic analysis at HGK, states that companies are most familiar with the types of insurance they use the most, which are mandatory car insurance, casco insurance, and property insurance.

The research showed that companies invest more in car insurance than in the insurance of their employees, for example through voluntary health insurance or through insurance against financial losses due to business interruption, Dominović emphasized.

Considering that most respondents prioritize car insurance, Dominović notes that this is mandatory insurance, while the fact that relatively well-known insurances are contracted signals that there is still much room for informing and raising awareness about other forms of insurance.

Regarding potential risks they may be exposed to, companies primarily cite property damage, for example due to earthquakes, floods, or fires, followed by the risk of uncollectible receivables.

Two-thirds of companies show no interest in contracting new types of insurance in the next two years

When asked about plans for new types of insurance in the next two years, one-third of respondents expressed the intention to contract some new type of insurance during that period, with property insurance again at the forefront.

Thus, two-thirds of companies do not plan or have not yet made a decision about contracting future insurances in the next two years, and eight percent do not currently use any type of insurance, mainly considering that there is no need for it, the research presented at the round table “Insurance in the Economy – How to Protect Against Business Risks?” showed.

Although climate risks and risks from cyber attacks have increasingly influenced business recently, Dominović pointed out that only three percent of respondents have contracted cyber risk insurance, even though one-quarter recognize cyber risks as potential challenges in their business.

The research also showed that, when it comes to risk exposure, 30 percent of companies assess it multiple times a year, 41 percent once a year, nine percent do so once every three years, and 20 percent do so less than once every three years.

A large portion of entrepreneurs are still uninsured

Professional liability insurance is present among 34 percent of respondents, but this is mostly due to legal requirements. Namely, just over one-fifth of respondents, 22 percent, stated that they have a legal obligation to contract such insurance due to the activities they perform.

Robert Vučković, president of the Association of Insurers at HGK, stated that they are “unfortunately not surprised” by the research results, emphasizing that a large portion of entrepreneurs are still uninsured, and those who are, are not adequately insured.

He believes that entrepreneurs and citizens need to be more aware of the present risks, citing recent examples of floods in Koprivnica and Garešnica and hail in Županja.