Insurers paid out more than PLN 11,5 billion in insurance compensation

Date: 24 June 2022

In Q1 2022, Poles received over PLN 11.5 billion worth of insurance compensation and benefits, according to Polish Chamber of Insurance (PIU) data. This is 12.6% more than last year. There was a large increase in payouts related to property damage, primarily concerning fire and other elements.

KEY FIGURES

  • PLN 11.5 billion for the injured, including:
    • PLN 5.3 billion for life insurance
    • PLN 4 billion from motor insurance (third-party liability insurance + motor hull insurance).
    • PLN 2.2 billion for other insurance
  • We spent PLN 18.1 billion on insurance, which is 2.9% more than the previous year.
  • Insurers invested PLN 84.6 billion in assets in domestic bonds and other fixed-income securities supporting the economy and public finance
  • PLN 16.8 billion worth of assets were invested in shares of WSE companies and other variable-income securities.
  • Insurers paid more than PLN 262 million in income tax

LIFE INSURANCE

Life insurance benefits increased by 10.8 per cent. The largest increase in payouts was for investment and savings insurance and amounted to more than 23 per cent. In Q1 2022, we spent on life insurance PLN 5.2 billion, which is 5.5 per cent less than a year earlier. “The decrease in premiums is mainly due to investment policies, which is related to the product intervention in force since the beginning of this year. 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 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 2.4 billion and were 2.8% higher than a year before.
  • Compensation from motor hull insurance amounted to PLN 1.6 billion, 8% more than a year before.

In Q1 2022, the average premium for compulsory motor third-party liability insurance was PLN 488, i.e. 1.2% less than a year before. At the same time, the average claim increased. Its cost amounted to PLN 8,255, 2.7% more than a year before. “Pricing policy is an individual decision of each insurance company. In motor third-party liability, however, a decrease in the average price and an increase in the cost of vehicle repairs have been clearly visible for a long time. An analysis carried out for PIU by Deloitte shows that, if the prices for the automobile third party liability insurance cover remain at the current level, within two years the loss for the whole market will amount to PLN 3.4 billion. In addition, let us remember that new recommendations of the Polish Financial Supervision Authority (KNF) regarding the settlement of motor vehicle damage will soon be known. We do not know their final content, but it is likely that the cost of repairs will increase even more after the recommendations have been introduced, and insurers will only be payers with much less control over claims handling,” says Jan Grzegorz Prądzyński.

PROPERTY INSURANCE

The increase in claims and benefits in Q1 2022 was largely associated with 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. In relation to fire and other elements, insurers paid out almost PLN 691 million in Q1 2022, as much as 77 per cent more than a year earlier.

NET RESULT

In Q1 2022, Polish insurers generated PLN 771 million in net profit, 33 per cent less than a year ago. Insurers paid PLN 262 million of income tax to the State budget.