Insurance have paid out almost PLN 22.5 billion to victims

Date: 6 September 2022

IN THE FIRST HALF OF 2022. POLES RECEIVED ALMOST PLN 22.5 BILLION IN INSURANCE CLAIMS AND BENEFITS, ACCORDING TO DATA FROM THE POLISH CHAMBER OF INSURANCE (PIU). THIS IS AS MUCH AS 12.9 PER CENT MORE THAN A YEAR EARLIER. THERE WAS A LARGE INCREASE IN PAYOUTS RELATED TO PROPERTY DAMAGE, PRIMARILY RELATING TO FIRE AND OTHER ELEMENTS.
KEY FIGURES:
  • PLN 22.5 billion for the injured, including:
    • PLN 10.0 billion for life insurance
    • PLN 8 billion from motor insurance (third-party liability insurance and motor hull insurance)
    • PLN 4.5 billion for other insurance
  • We spent PLN 35.5 billion on insurance, which is 3% more than the previous year.
  • Insurers invested PLN 82.0 billion in assets in domestic bonds and other fixed-income securities supporting the economy and public finance>
  • PLN 16.1 billion worth of assets were invested in shares of WSE companies and other variable-income securities.
  • Insurers paid more than PLN 581 million in income tax.
LIFE INSURANCE

Life insurance benefits increased by 7.1 per cent. The largest increase in payouts was for investment and savings insurance and amounted to more than 24.7 per cent. In the first six months of 2022, we spent PLN 10.5 billion on policies, which is 5 per cent less than a year earlier.

“The decrease in premiums relates mainly to investment policies, which is related to the product intervention in force from the beginning of this year, but also to the increasingly strong inflationary pressure felt by Poles, and thus the lack of funds for investments and securing the future. On the other hand, the market for protection and accident insurance is growing,” says Jan Grzegorz Prądzyński, President of the PIU management board.

MOTOR INSURANCE

As far as property insurance is concerned, motor insurance products accounts for the largest share of compensation payments. Their value has increased compared to last year.

  • Compensation and benefits from compulsory motor third-party liability insurance amounted to PLN 4.8 billion and were 6.3% higher than a year before.
  • Compensation from motor hull insurance amounted to PLN 3.1 billion, 10.8% more than a year before.

In the first half of 2022, the average premium for compulsory motor third-party liability insurance was PLN 482.4, i.e. 1.2% less than a year before. At the same time, the average claim increased. Its cost amounted to PLN 8,769.5, which is 5.2% more than a year before.

“On 18 July, new recommendations from the Financial Supervision Commission were published, which will have a major impact on repair costs. They will come into force on 1 November this year. Insurers are legally obliged to ensure that the premiums they collect from motorists cover at least the cost of claims paid and the cost of doing business. Higher claims costs mean higher policy prices for customers. Increases in third-party liability prices are therefore very likely; they will reflect inflation, recommendations from the FSA, more expensive repairs, breaks in the supply chain. Meanwhile, customers have an interest in keeping the price for this insurance as low as possible. For many, bearing this cost will be very difficult. And this could mean an increase in the number of uninsured vehicles. So we are paying attention to ensure that, at such a difficult time for customers, we do not generate further impetus for rises,” says Jan Grzegorz Prądzyński.

PROPERTY INSURANCE

The increase in claims and benefits in the first half of 2022 was largely related to higher payouts in the area of property damage.

“Compared to last year, significantly more claims related to storms, hailstorms and fires were reported. Not only was their number greater, but also their average value,” says Andrzej Maciążek, vice-president of the PIU management board.

Due to fire and other elements, insurers paid out almost PLN 1.3 billion in the first half of 2022, up 66.5 per cent more than a year earlier. Poles spent 6.8 per cent more on property protection than a year ago.

Insurance guarantee payments also increased compared to the previous year. It is worth noting that 2021 was a specific year, as many construction projects implemented by the public sector and secured by insurance companies were at the beginning of implementation. At this stage, guarantee payments are most often not claimed. In addition, insurance companies recovered a large part of the amounts under recourse, which significantly reduced the total amount of guarantee payments for the first half of 2021.

NET RESULT

In the first half of 2022, Polish insurers generated PLN 2.3 billion in net profit, which is 16 per cent less than a year ago. Insurers paid PLN 581 million of income tax to the State budget.