Austria's Krampus frightfest is starting to decline in popularity because many insurance companies deem the pre-Christmas custom too violent.

During these traditional parades, which are held in almost all mountain villages, people dressed as horned Krampus creatures are meant to scare children into good behavior. Anyone who makes fun of the monster impersonators gets whipped on the leg with a rod.

"It's a very normal custom. Those who don't like it should stay home," says Michael Pufitsch who is protecting his young son with his arms during a parade in the town of Kolbnitz. "I think it's funny when they hit the people," adds another spectator.

The tradition, which dates back to pre-Christian times, has experienced a boom in recent years, not only in Austria, but also in Bavaria, northern Italy and Slovenia. 

But this year, some parades were scaled back or canceled altogether because insurers have stopped covering these events.

"We wanted to insure our Krampus association, but the insurance companies didn't want us because we are a high-risk group. There is too much risk of damage," Markus Eder, head of the Zlan Krampus group, told CGTN.

For local insurance broker Alexander Ertl, doing business with the monstrous tradition no longer pays off. "Some years ago, insurers were still tolerating a few Krampus incidents. But now the number of damages and injuries has risen too much," he said.

Some Krampus groups only pay an insurance rate of around $100 a year. This cannot cover incidents which potentially could cost companies up to $1 million, another broker from the town of Spittal remarked.

Meanwhile at the parade in Kolbnitz, medical doctor Ulrich Gradnitzer is wrapping a bandage around a broken hand. He says that about two people are injured at every parade.

"The barricades get into their stomachs or into their belly - people are hurt. That's the most common injury they get from the Krampus," he lamented.

But Gradnitzer also says insurance companies are being cheated by spectators. "When Krampus watchers have to be brought to the hospital, most of the time it's just because they want to get money ... it's an insurance thing," he moaned.

In order to preserve the Krampus tradition, Austria's villages are taking ever stricter safety precautions during the parades. And some municipalities have even started providing insurance coverage for their Krampus groups themselves.