In 2025, insurers paid out nearly PLN 53.8 billion in compensation and benefits

Date: 10 March 2026

This is 7% more than in previous year. There was also an increase in gross written premiums, in both life (+5.2%) and property insurance (+6.0%). Despite the positive technical performance in motor TPO insurance, fierce competition has capped profitability of this business line at 0.5%.

 

KEY FIGURES:

  • 53.8 billion PLN for the injured, including:
    • 17.5 billion PLN in Division I (life insurance, +7.0% y/y)
    • PLN 36.3 billion in Division II (property insurance, +7.0% year-on-year)
  • Poles spent PLN 90.6 billion on insurance (gross written premium), including:
  • PLN 24.8 billion on life insurance (+5.2% y/y)
  • PLN 65.8 billion on property insurance (+6.0% y/y)
  • Insurers invested PLN 111.5 billion in bonds and other fixed-income securities.
  • Additionally, the sector invested PLN 21.6 billion in shares of WSE-listed companies and other variable-income securities.
  • Insurers paid PLN 2.2 billion in income tax (+32% y/y).

 

– The 2025 figures confirm that the insurance market in Poland is growing in a stable and sustainable manner. Higher gross written premium and the rising number of compensations paid demonstrate that the industry not only effectively protects clients but also consistently builds its equity value. The insurance sector is the cornerstone and pillar of the Polish economic stability – says Jan Grzegorz Prądzyński, president of the Management Board of the Polish Chamber of Insurance. The sector’s profitability is key to maintaining a strong financial footing and a high level of solvency, thus building clients’ trust and facilitating effective support for economic growth. As a market, we are ready to become an active contributor to the acceleration of energy, technology and infrastructure investments, driven by the need to ensure security and resilience of the state. Insurers will play a special role in these developments, acting both as providers of insurance cover against new, increasingly more complex and capital-intensive types of risk, and as long-term institutional investors generating a flow of stable investment capital.

 

Life insurance

In 2025, the life insurance market grew in terms of both the number of contracts and the amount of gross written premium. At the end of 2025, the number of active life insurance policies stood at 25.5 million, more than half of which (14.3 million) were group policies. The group insurance segment was the main driver of growth. Compared with 2024, the number of people covered under this model rose by 21%, while gross written premium increased by 5.3%. The figures point to the growing popularity of group insurance and its expanding share in the market structure. Gross written premium rose in virtually all business lines, including the market-strategic segments, such as life insurance (Class 1) and accident insurance (Class 5). There was also a moderate increase in the investment fund insurance segment.

Gross written premium in Division I reached PLN 24.8 billion, having grown by 5.2% y/y – the highest increase in 2 years. We are also seeing a shift in the sales mix: the proportion of regularly paid premiums is growing, which makes revenue more predictable and strengthens the sector’s long-term stability. The growth scenario for life insurance can be further bolstered by the introduction of Personal Investment Accounts (OKI), which will also be offered by Division I insurance undertakings.

– 2025 was a period of steady growth for the life insurance market – the number of policies reached 25.5 million and gross written premium in Division I rose by 5.2%. This shows that Poles’ insurance needs are on the rise; yet, there is still a lot to be done in this regard. The life insurance market in Poland has been operating under heavy regulatory pressure for several years. Today, the industry is facing another challenge – the Polish Financial Supervision Authority’s (PFSA) draft distribution recommendations. While the second draft, published on 25 February this year, is definitely a step in the right direction, we hope that the PFSA, in consultation with the market, will address all the vital issues in the final document. At the same time, recent years brought an ageing population, the digitisation of sales and the growing importance of data and automation, to which the sector has been trying to accommodate. Consequently, insurers and distributors are forced to redefine their business models, products and client relationships, particularly given Poles’ low level of long-term savings and the widening pension gap – says Piotr Wrzesiński, vice-president of the Management Board of the Polish Chamber of Insurance.

 

Motor insurance

Motor insurance constitutes the largest part of the Division II market. In 2025:

  • compensation and benefits paid under compulsory motor TPO insurance totalled PLN 12.8 billion, up 6.9% y/y.
  • compensation paid under comprehensive Auto Casco (AC) insurance totalled PLN 9.3 billion, up 8.2% y/y.

The value of claims in motor insurance increased, but we are also seeing steady growth in insurance premiums. The average premium in motor TPO insurance was PLN 553, up 2.7% y/y. The average motor TPO claim amount rose by 11% and reached PLN 12,161 at the end of 2025. The flatter growth in average motor TPO and comprehensive Auto Casco (AC) insurance rates is due to pricing pressure that permeates the market. Despite the positive technical performance in motor TPO insurance, fierce competition has capped profitability of this business line at 0.5% (technical performance as a ratio of earned premiums-net of reinsurance).

 

Other property insurance

The flourishing of property insurance (which includes coverage of large corporate assets) is contingent on the investment cycle in the economy. Assuming that the macroeconomic forecasts for Poland remain positive, this line of insurance is expected to grow in the medium term.

After Q4 2025, compensation paid under property insurance (Class 8 and Class 9) amounted to PLN 6.2 billion, up 0.9% y/y. The result was influenced by int. al. payouts relating to agricultural insurance in the spring of 2025.

 

Profit and tax

In 2025, insurance undertakings reported an increase in both technical performance of their insurance businesses and in profit from their investment activities. It should be noted that investment activity is influenced by int. al. changes in the NBP’s interest rates, which have been falling steadily since 2025.

Year-on-year, net profit increased by 6.7% in Division I and by 35.4% in Division II. A profitable insurance industry guarantees not only a strong capital position but also high solvency ratios, which reinforces the stability of the entire insurance sector.

In 2025, insurers paid over PLN 2.2 billion in income tax to the state budget, having generated more than PLN 12.5 billion of net profit.