In 2016, Polish insurers paid out PLN 36.6 billion in compensation and benefits to the injured and customers. This is 4.6% more than last year.
Key figures of the insurance market in 2016
- PLN 64.9 billion of insurers’ assets are funds supporting the economy and public finances by domestic bonds and other fixed-income securities
- PLN 17.4 billion of insurers’ assets are funds invested on a long-term basis in the shares of companies from the WSE and other fixed-income securities
- PLN 1 billion income tax to the State budget
- PLN 56 billion of premiums, 1.7% more than last year
Motor insurance market
- The premium on double motor civil liability insurance (OC) amounted to PLN 11.6 billion (an increase by 39.1%)
- Gross compensations and benefits under motor civil liability insurance (OC) amounted to PLN 8 billion (an increase by 14.3%)
- Gross premium written on comprehensive Auto Casco (AC) insurance amounted to PLN 6.6 billion (an increase by 19.4%)
- Gross compensations and benefits under comprehensive Auto Casco (AC) insurance amounted to PLN 4.2 billion (an increase by 8.6%)
“Compensation and benefit payments are increasing, while the increase in premiums that occurred in 2016 prevented higher losses on third-party liability insurance. It has to be emphasised that the increase in premiums requires insurers to establish higher reserves, therefore the full effect of the increase will appear in the insurers’ accounts after several or even few dozen months from their introduction. To date, the third-party civil liability market remains unprofitable, with a loss of PLN 1 billion,” says Jan Grzegorz Prądzyński, President of PIU.
Non-life insurance market (Section II exclusive of motor vehicle insurance).
- The total premiums for non-life insurance (exclusive of motor vehicles) amounted to PLN 14 billion and was 1.9% higher than the 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 3 billion, YoY increase by 1.8%), insurance against other property damage (PLN 2.6 billion, increase by 3.4%) and civil liability insurance (OC) (PLN 1.9 billion, YoY decrease by 7.4%).
“In 2016, the key events on the non-life market were huge damages connected with agricultural crops. Insurance protection enabled to compensate for losses in crops caused mainly by unfavourable weather conditions,” explains Andrzej Maciążek, Vice-President of the Management Board of PIU.
Life insurance market
- Value of the premium on life insurance amounted to PLN 23.8 billion (a decrease of 13.3%)
- Value of benefits from life insurance amounted to PLN 18.3 billion (a decrease of 5.6%)
“In the life insurance market we are still observing a decrease in the premium from investment-type insurance. The new legal regulations that have been in force since the beginning of 2016 have had an impact on a decrease in sales in this segment, 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 in 2016 amounted to PLN 2.2 billion (of which PLN 1.5 billion is attributable to the largest Polish life insurer) and was lower than the year before by 26.1%
- Non-life insurers ended 2016 with a profit of PLN 1.9 billion (of which PLN 1.6 billion is attributable to the largest Polish non-life insurer), i.e. a decrease by 24.7%
The technical result on life insurance amounted to PLN 3 billion and was 6% higher than the year before. The technical result of non-life insurers amounted to PLN 350 million and was 56.5% higher than in 2015. The income tax due from Polish insurers for 2016 amounted to PLN 1 billion, whereas the tax on assets – to approximately PLN 620 million.