In Q1 2018, insurers paid out PLN 10.5 billion worth of compensation to claimants and clients. As usual, most payments and adjusted claims concerned motor insurance.
Key insurance market figures after Q1 2018:
- PLN 70.3 billion of insurers’ assets are funds supporting the economy and public finances by domestic bonds and other fixed-income securities
- PLN 16.6 billion of insurers’ assets are funds invested on a long-term basis in the shares of companies from the Warsaw Stock Exchange and other fixed-income securities
- PLN 312 million of income tax to the State budget
- Insurers collected PLN 16.3 billion in premiums, which is 1.9% more than the year before
Motor insurance market
- The premium on motor civil liability insurance (OC) amounted to PLN 3.7 billion (6.8% increase)
- Gross compensations and benefits under motor civil liability insurance (OC) amounted to PLN 2.3 billion (2.9% increase)
- Gross premium written on comprehensive Auto Casco (AC) insurance amounted to PLN 2.1 billion (12.5% increase)
- Gross compensations and benefits under comprehensive Auto Casco (AC) insurance amounted to PLN 1.3 billion (9.2% increase)
‘After Q1 2018, the market shows a slowdown in the increase in premiums and payments. The question remains open as to whether this is a permanent trend. In this context, the recent justification of the resolution of the Supreme Court with respect to indirectly injured persons is very important. The Court precisely stated that situations where one can apply for remedy if the family bond with a victim of a road accident has ceased are exceptional’, says Grzegorz Prądzyński, President of the Management Board of the Polish Insurance Association.
Non-life market (Chapter 2 excluding motor insurance)
- The total premiums for non-life insurance (exclusive of motor vehicles) amounted to PLN 4.7 billion and was 6.5% higher than the year before.
- The following types of insurance have the biggest share in the premium in the non-life market: insurance against fire and other natural forces (PLN 1 billion, YoY decrease by 1.4%), insurance against other property damage (PLN 688 million, increase by 15.6%) and civil liability insurance (OC) (PLN 641 million, YoY increase by 10.8%)
‘Fortunately, the first quarter of 2018 did not bring many major weather-related incidents. However, forecasts talk about possible violent storms and heavy rain. Insurers are financially and logistically prepared for such phenomena, still we hope that we will not be given the chance to verify that’, 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 5.7 billion (7.4% decrease)
- Value of benefits from life insurance amounted to PLN 5.4 billion (3.9% decrease)
‘Life insurers are primarily waiting for the final form of the Act on Employee Capital Plans (ECP) and a decision on asset tax exemption for funds accumulated from long-term saving. I have no doubt that the objectives of the ECP should be implemented with the participation of insurers. Not only are they experienced in asset management, but they also have great contacts with employers, which will contribute to significantly raising awareness about the ECPְ’, says J. Grzegorz Prądzyński.
Financial results of insurers
- The net profit of life insurers after the Q1 2018 amounted to PLN 470 million and was 3.1% lower than a year ago.
- Non-life insurers ended Q1 2018 with a profit of PLN 588 million, which means an increase by 6.2%).
The technical result of life insurance amounted to PLN 679 million and was 6.3% higher than a year before. The technical result of non-life insurers amounted to PLN 691 million and was 6.3% higher than a year before. The income tax payable by Polish insurers at the end of Q1 2018 amounted to PLN 312 million and asset tax, approximately PLN 180 million.