15 November 2016

In the period from January to September 2016, Polish insurers paid out PLN 27 billion in compensation and benefits to the injured and other customers. This is 4.4% more than last year.

Key financial data after the first three quarters of 2016:

  • PLN 57.6 billion of insurers’ assets are funds supporting the economy and public finances by domestic bonds and other fixed-income securities
  • PLN 24.7 billion of insurers’ assets are funds invested on a long-term basis in shares of the companies from the WSE and other fixed-income securities
  • Income taxes due and the tax on assets amounted to almost PLN 1 billion
  • Insurers collected PLN 40.7 billion in premiums, which is 0.4% less than the year before.

Motor vehicle insurance market:

  • The premium for motor civil liability insurance (OC) of vehicle owners amounted to almost PLN 8 billion (an increase of 32 per cent)
  • Gross compensation and benefits under motor vehicle civil liability insurance (OC) amounted to PLN 5.7 billion (an increase of 14.8%)
  • Gross written premiums on comprehensive Auto Casco (AC) insurance amounted to PLN 4.8 billion (an increase of 18.4%)
  • Gross compensation and benefits under comprehensive Auto Casco (AC) insurance amounted to PLN 3.1 billion (an increase of 9.6%)

– motor vehicle civil liability insurance (OC) remains unprofitable, however, a remarkable increase in the premium has been observed on the market. It has been justified from an recently emphasised economic point of view, among others, in the statements of representatives of the Office of Competition and Consumer Protection (UOKiK). It is worthwhile to point out that an increase in the amounts of premiums obliges insurers to establish higher financial provisions, which alleviates to a considerable extent the impact of an increase in premiums based on the current result. Evidently, an increase in premiums should have an impact on the improvement of the result over a long term period, but what we can see in the interim is first activities aimed at ensuring customer safety, which is confirmed by higher provisions – says Jan Grzegorz Prądzyński, President of the Board of PIU.

Non-life insurance market (Section II exclusive of motor vehicle insurance)

  • The total premium on non-life insurance (exclusive of motor vehicle insurance) amounted to PLN 10.2 billion and was higher by 1.5% than a year before.
  • The following types of insurance have the biggest share in the premium on the non-life market: insurance against fire and other natural forces (PLN 2.2 billion, YoY decrease by 0.7%), insurance against other property damage (PLN 1.8 billion, increased by 6.2%) and motor civil liability insurance (OC) (PLN 1,4 billion, YoY increased by 10.5%).

– In 2016, the key events on the non-life market were huge damages connected with agricultural crops. Payments for damages in the so-called other property class increased YoY by as much as 77%, and their amounts exceeded PLN 1.2 billion. Over half of these funds was paid out by insurers to farmers, which enabled them to compensate for losses in crops caused mainly by unfavourable weather conditions – explains Andrzej Maciążek, Vice-President of the Board of PIU.

Life insurance market

  • The value of the premium on a life insurance policy amounted to PLN 17.8 billion (a decrease of 14.5%)
  • The value of benefits from life insurance amounted to PLN 13.5 billion (a decrease of 7.2%)

– On the life insurance market we see a continuation of the trend connected with a decrease in the premium from investment-type insurance. The new legal regulations that have been in force since the beginning of this year have had an impact on a decrease in sales of this type of insurance, but at the same time made customers more consciously in selecting service options – says J. Grzegorz Prądzyński.

Financial results of insurers

The net profit of life insurers after the first three quarters of 2016 amounted to PLN 1.7 billion and was by 26.3% higher than a year before. Non-life insurers ended Q3 2016 with a profit of PLN 1.2 billion (a decrease of 37%). The technical result on life insurance amounted to PLN 2.1 billion and was 2.4% higher than a year before. The technical result of non-life insurers amounted to PLN 196 million and was 52% lower than after Q3 2015. The income tax due from Polish insurers after Q3 2016 amounted to about PLN 586 million, and tax on assets amounted to PLN 450 million.

Table of results