After three quarters of 2019, insurers had paid out PLN 30.7 billion to the injured and customers. More than PLN 14 billion from this amount concerned life insurance, and another PLN 11 billion related to motor insurance. Compensation for damage caused by natural forces increased by as much as 23%.
Key insurance market figures after Q3 2019
- PLN 67 billion of insurers’ assets are funds that support the economy and public finance through domestic bonds and other fixed-income securities
- PLN 15 billion of insurers’ assets are funds invested on a long-term basis in the shares of companies from the WSE and other variable-income securities
- PLN 1 billion income tax for the State budget
- Insurers collected nearly PLN 47 billion of premiums, 1.5% more than last year
– ‘Each hour of an insurer’s work means more than PLN 4.5 million in compensation and benefits for the injured. However, insurance is not only an advantage for the injured. It is also a long-term investment in the economy through funds invested in securities issued by the State’ – said J. Grzegorz Prądzyński, President of the Management Board of the Polish Chamber of Insurance.
Motor insurance market
- Gross compensations and benefits under third party only (TPO) motor insurance amounted to PLN 7 billion (an increase of 6%)
- Gross compensations and benefits under AC amounted to PLN 4.1 billion (an increase of 12.6%)
- PLN 562.8 is the average premium under the annual agreement on TPO insurance for motor vehicle owners in Q3 2019 – 3.3% less than one year ago
- PLN 7,656 is the average value of loss on the agreement on TPO insurance for motor vehicle owners at the end of Q3 2019 – 3.1% more than one year ago
Non-life market (Chapter 2 excluding motor insurance)
- The total premiums for property insurance (exclusive of motor insurance) amounted to PLN 13.4 billion and was 8.4% higher than the previous year
- Insurance against natural forces and other property damage still has the largest share of the premium in the non-life market. In total, after Q3 2019, we spent PLN 5 billion on it
‘Expenditure on insurance related to natural forces is growing, but most of all, the value of compensation paid is increasing. At the end of September 2019, insurers paid out PLN 1.2 billion on account of natural forces, which is 23% more than the year before. The PIU report entitled ‘Climate of risk’ clearly shows that the frequency of violent weather events is going to increase in the coming years. Unfortunately, without a good risk management policy, we also need to be ready for increasing damage resulting from this fact’ – explained Andrzej Maciążek, Vice-President of the Management Board of PIU.
Life insurance market
- The value of the premium on life insurance amounted to nearly PLN 16 billion (a decrease of 3.1%)
- The value of benefits from life insurance amounted to PLN 14.2 billion (a decrease of 10.6%)
‘The life insurance market in Poland is still shrinking, but the premium reduction in subsequent quarters is decreasing. It still results from lower sales of investment and savings insurance. At the same time, the segment of strictly protective insurance policies remains stable’ – said J. Grzegorz Prądzyński.
Insurers’ financial results
- The net profit of life insurers after Q3 2019 amounted to PLN 2 billion and was 5% higher than a year ago
- Non-life insurers ended Q3 2019 with a profit of nearly PLN 3.9 billion, which means an increase of 6.2%; however, PLN 1.3 billion of this result is made up of a dividend from PZU Życie SA to PZU SA, already included in last year’s life insurers’ net profits
The technical result on life insurance amounted to PLN 2.5 billion and was 5.6% higher than the previous year. The technical result of non-life insurers amounted to PLN 2.1 billion and was 10.7% lower than a year before. The income tax payable by Polish insurers at the end of Q3 2019 amounted to PLN 1 billion and asset tax – approx. PLN 540 million.