7 December 2010

The persons who insured their cars, houses and other property, received above 12 billion PLN from insurers in the form of indemnities in 2009, as results from the data gathered by PIU. The benefits from life insurance reached approx. 28 billion PLN. It also results from the data on sale structure that insurance agent’s services are most popular among the clients who are looking for a property insurance product.
The value of indemnities and benefits paid in 2009 was the highest in the whole history of Polish insurance market in respect of both life and non-life business. As far as life insurance is concerned, the value of benefits grew by as much as 43 per cent which was related to the expiry of short-term investment wrapped in policies. Most indemnities on the non-life market were related to, like every year, motor insurance.
Insurers paid above 5 billion PLN (a growth by 18 per cent) from MTPL policies. It was 3.7 billion PLN from autocasco policies (a growth by 20.7 per cent). At the same time, we faced a drop of value of the premiums collected by insurers. Insurers collected 30.3 billion PLN for life policies which means a drop by above 22 per cent on year-to-year basis. This drop is the result of withdrawal of many insurers from offering investment policies distributed through the banks. Non-life insurers increased slightly their gross premium written in 2009, up to 21 billion PLN (3.6 per cent more than the year before).
In total, gross premium written dropped by above 13 per cent in 2009 on the whole insurance market. The growth of payments of benefits and indemnities with a simultaneous drop of premium was decisive for insurers’ financial results. It can be illustrated by the example of non-life insurers. Growth of the value of indemnities by one fourth (with a growth of premium by as little as 3.8 per cent) was the reason of the technical loss amounting to 222 million PLN and reported by the non-life market by the end of 2009. Non-life insurers’ net profit dropped from 3.33 billion PLN down to 2.68 billion PLN.
Life insurers reported better financial results than a year before, in spite of the growth of benefits paid and a drop of premium. It was caused, to a large extent, by higher revenues from investment. Life insurers increased them by above 46 per cent. In total, life insurers earned 4 billion PLN in 2009 which is 59 per cent more than a year before.

Insurance agent is the most popular distribution channel if we want to insure our flat or car. In case of life market, the leading intermediaries are banks and insurers’ employees.

Non-life market

– agents
Insurance agents (natural persons) generated nearly 44 per cent of the premium collected in 2009. It is approx. 2 per cent more than a year before.

– direct (by phone and online)
The value of insurance products sold online increased by 55 per cent in 2009. The sale by phone increased by 42 per cent. It should be noted that the PIU data do not cover the insurers operating in Poland in the form of branch offices. Taking those companies into account, the value of direct market after 2009 would be 677 million PLN. Without taking those companies into account, the value of direct market amounts to 450 million PLN.

– brokers
The share of brokers in non-life insurance sale structure increased in 2009. Presently, they generate 15.6 per cent of all premiums. It was 14.3 per cent last year.

Life market

Despite insurers’ withdrawal from bank assurance, the banks remain the leading distributor of individual policies (28 per cent market share). However, the situation has changed in respect of group insurance. In this area the banks have lost their leadership and been replaced with insurers’ employees. The share of banks in the distribution of group insurance dropped from 52 per cent down to 32 per cent. The share of insurers’ employees increased from 28.5 per cent up to 37.3 per cent. The share of insurance agents in the sale of individual policies is also large and amounts to 23.9 per cent. The share of brokers and direct sales is still of the marginal meaning in the area of life insurance.