In the first half of 2020, Poles received nearly PLN 20 billion worth of compensation and insurance benefits. Payments from compulsory third-party liability motor insurance itself amounted to PLN 4.5 billion. Although the pandemic significantly reduced vehicle traffic, the number of compensation claims under third-party liability insurance was almost the same as the previous year.
KEY DATA AFTER THE FIRST HALF OF 2020
- In total, PLN 19.7 billion worth of compensation and insurance benefits for claimants, including:
- Nearly PLN 9 billion from life insurance
- PLN 7.2 billion from motor insurance (third-party liability insurance and motor hull insurance)
- About PLN 3.5 billion from other insurance
- Insurers invested nearly PLN 82 billion worth of assets in domestic bonds and other fixed-income securities supporting the economy and public finance
- Over PLN 16 billion worth of assets were invested in shares of WSE companies
and other variable-income securities
- Insurers paid more than PLN 800 million in income tax
‘We spent PLN 31.5 billion on insurance in the first half of this year. This is only 2% less than a year ago. This means that, despite the pandemic, we are not giving up on insurance coverage. This is particularly important today, when, as a result of a worse financial standing, insurance losses may be more harsh on our wallets than usual’, says J. Grzegorz Prądzyński, President of the Management Board of the Polish Chamber of Insurance.
COMPARABLE AMOUNT OF COMPENSATION FROM MOTOR INSURANCE
In the first half of 2020, Poles spent PLN 11.6 billion on the insurance cover of their vehicles, of which approx. PLN 7.3 billion were third-party liability insurance premiums and approx. PLN 4.3 billion were motor hull insurance premiums. We spent PLN 2 billion on policies protecting households, apartments and businesses against the effects of natural forces. ‘The results for the first half of 2020 reflect an increase in compensation for agricultural damage caused by the spring frosts. We can also observe that, despite the pandemic and restrictions on the use of vehicles, payments from third-party liability insurance and motor hull insurance are at a level similar to the last year’s level’, says Andrzej Maciążek, Vice-President of the Management Board of the Polish Chamber of Insurance.
WE SPEND ALMOST THE SAME AMOUNT OF MONEY ON LIFE IN INSURANCE
In the first half of 2020, we spent PLN 10.1 billion on life insurance, which is 4.4% less than in the previous year. ‘In the life insurance market, there have been considerable changes in investment and savings products for several years. Policies with regular premiums are predominant, and a decrease in the
benefits paid from them means that we haven’t given up on them, but rather treat them as long-term capital’,
emphasises J. Grzegorz Prądzyński.
In the first half of 2020, Polish insurers earned a net profit of PLN 3.8 billion – 7% less than in the previous year. They paid more than PLN 800 million of income tax to the State budget. Deposits accumulated in domestic bonds and other secure instruments exceed PLN 81 billion.
‘By alleviating business cycles and being a long-term investor in national securities, insurers play a special role in the economy. They have a very strong capital position, which enables them to operate safely despite economic fluctuations. At the same time, it must be borne in mind that we will be able to more precisely assess the impact of the pandemic and the economic slowdown on the insurance market in 2-4 quarters. Most contracts are concluded for a year, so a recession in insurance is always visible with a certain delay’, concludes J. Grzegorz Prądzyński.