The data of the Polish Chamber of Insurance (PIU) indicate that in 2023, Poles received PLN 44.2 billion worth in insurance compensation and benefits, representing an 0.3% decrease compared to the previous year. In 2023, 23.9 million Poles held life insurance policies. We also concluded 79.3 million property insurance policies.
Key figures:
- PLN 44.2 billion for injured parties, including:
- PLN 16.2 billion from life insurance
- PLN 17.9 billion from motor insurance (third party only insurance + comprehensive autocasco (AC) insurance)
- PLN 10.1 billion from other insurance
- Poles spent PLN 78.9 billion for insurance (gross premium written), 9.2% more than the year before.
- Insurers invested nearly PLN 96.4 billion worth of assets in domestic bonds and other fixed-income securities supporting the economy and public finance.
- Over PLN 17.9 billion worth of assets were invested in shares of WSE companies and other variable-income securities.
- Over PLN 1.8 billion of income tax was paid by insurers.
Life insurance
In 2023, life insurance was held by 23.9 million Poles, of which 11.7 million under group insurance policies. This is about 3.6% less than a year ago, yet there is a continuing interest in life insurance. Overall, life insurance premiums amounted to PLN 22.8 billion, which represents an increase of 6.2%. The payments have returned to pre-pandemic levels and reflect the current situation related to the death rate of Poles.
– The situation in the life insurance market is stable, while changes are visible in the product structure. Protection and accident products are becoming more popular. The share of savings and investment products is decreasing. Regulations, but also applicable taxes, play a key role in the development of the latter. The changes in the Belka tax announced by the Ministry of Finance could encourage Poles to save money, including in insurance products – says Jan Grzegorz Prądzyński, President of the PIU Management Board.
Motor insurance
As far as property insurance is concerned, motor insurance accounts for the largest share of compensation payments. Compensation and benefits under mandatory motor third party only insurance amounted in 2023 to almost PLN 10.7 billion and were 8.2% higher than the year before. At the same time, despite increased costs of claims, the average premium under motor third party only insurance increased by just 2.9% and was PLN 513. The average claim under third party only insurance for motor vehicle owners increased by 11.4% to PLN 9,980.
– Poles are very sensitive to the price of motor insurance. However, we expect adjustments in this market segment. Inflation, rising costs of claim adjustment, including medical procedures, must be reflected in premiums, which is what insurers are required to do by regulations and supervision – says Jan Grzegorz Prądzyński.
Compensation under comprehensive autocasco insurance amounted to PLN 7.3 billion, i.e. 13.1% more than the year before.
Other property insurance
2023 was a quiet year in terms of violent weather events and catastrophes, unlike 2022 which was a record-breaking year in respect of payments. Compensation related to natural elements and other property damage amounted to PLN 4.2 billion, i.e. 0.3% less than the year before.
– The fact that 2023 was relatively calm does not mean that we can ignore the risk of natural phenomena. It is our constant companion in varying intensities, which should not relax our vigilance. Still, we have been observing a lot of underinsurance. Market estimates show that this refers to as many as 3 out of 10 real properties and accounts for even several dozen per cent. On average, failure to update the sum insured in the last 2 years may result in the sum insured being underestimated by 20% – says Andrzej Maciążek, Vice-President of the PIU Management Board.
Profits in 2023
In 2023, insurers paid over PLN 1.8 billion in income tax to the state budget. During this period, they earned a net profit of PLN 9.5 billion, i.e. 67% more than the year before.
