Almost PLN 21 billion for the safety of claimants

In the first half of 2018, insurers paid out PLN 20.7 billion worth of compensation and benefits to claimants and clients. This is 5% more than the previous year.

Key insurance market figures after Q2 2018

  • PLN 70 billion of insurers’ assets are funds supporting the economy and public finances by domestic bonds and other fixed-income securities.
  • PLN 17.2 billion of insurers’ assets are funds invested on a long-term basis in shares of the companies from the Warsaw Stock Exchange and other variable income securities.
  • More than PLN 600 million of income tax to the State budget.
  • Insurers collected PLN 32.1 billion in premiums, which is 1.7% more than the year before.

Motor insurance market

  • The average premium on civil liability insurance of motor vehicle owners (OC) in Q2 2018 amounted to 574.8 and was the same as in Q2 2017 (annual contracts).
  • In six months, insurance companies adjusted PLN 619.6 thousand worth of claims under civil liability insurance.
  • The average premium on Auto Casco policy in the first half of 2018 amounted to PLN 1225.7, which is 4.6% more than the year before.
  • Within half a year, insurers adjusted PLN 382 thousand worth of claims under comprehensive Auto Casco (AC) insurance.

‘The increase in prices in the civil liability insurance (OC) market slowed down considerably. Payment figures are rising, yet less dynamically than 2–3 years before. This means that no new titles for payment appeared. There is an important act regulating the activity of so-called insurance claim companies ahead of us. Despite the fact that it does not directly concern the scope of insurer’s liability, it may affect the civil liability insurance market. We are also waiting for the effects of work on regulating remedies. Predictability in this area would allow significantly greater stability of prices in the future’, says J. Grzegorz Prądzyński, President of the Management Board of the Polish Insurance Association.

Non-life market (Chapter 2 excluding motor insurance)

  • The total premium on non-life insurance (exclusive of motor insurance) amounted to PLN 9.1 billion and was 11% higher than a year before.
  • The following types of insurance have the largest share in the premium on the non-life market: insurance against fire and other natural forces (PLN 1.8 billion), insurance against other property damage (PLN 1.8 billion) and civil liability insurance (OC) (PLN 1,2 billion).

‘The first half of the year was marked by significant damage in agriculture, therefore compensation in the ‘other property damage’ group increased by as much as 60%. Agricultural insurance in the context of climate changes is one of the most important challenges for the insurance market in the upcoming years. We have to remember, however, that a good policy is only an element of risk management. Insurance supports but does not replace a comprehensive strategy’, explains Andrzej Maciążek, Vice-President of the Management Board of the Polish Insurance Association.

Life insurance market

  • Value of the premium on life insurance amounted to PLN 11.1 billion (a decrease of 8.8%)
  • The value of benefits under life insurance amounted to PLN 10.8 billion (an increase of 4.2%)

‘Parliament will soon begin to work on the act on Employee Capital Plans (ECP). On the one hand, the plans will become a new product for insurers, on the other, however, the years of experience gained through offering occupational pensions will pay off. Thanks to their great contacts with employers, insurers may play a key role in making long-term saving among Poles a common thing’, says J. Grzegorz Prądzyński.

Financial results of insurers

  • The net profit of life insurers after Q2 2018 amounted to PLN 1.3 billion and was 8% higher than a year before.
  • Non-life insurers ended Q2 2018 with a net profit of nearly PLN 2.5, which means a decrease by 3.4% (nearly half of which is made up by a dividend from PZU Życie SA to PZU SA, already included in last year’s life insurers’ net profits)

The technical result on life insurance amounted to PLN 1.5 billion and was by 1.2% lower than a year before. The technical result of non-life insurers amounted to PLN 1.3 billion and was 18.3% higher than a year before. The income tax payable by Polish insurers at the end of Q2 2018 amounted to PLN 606 million and asset tax, approximately PLN 360 million.