In Q1 2016 Polish insurers paid life insurance benefits worth PLN 4.5 billion and non-life insurance compensations and benefits worth PLN 4.3 billion.
Key data after Q1 2016
- The total premium in the insurance market amounted to PLN 13.3 billion (YoY decrease by 6.9%)
- The total compensations and benefits paid amounted to PLN 8.8 billion (YoY increase by 1.3%)
- Compensations and benefits under motor civil liability insurance (OC) of land vehicles (including motor civil liability insurance (OC) of motor vehicle owners) amounted to PLN 1.9 billion (an increase by 20.4%)
Motor insurance market
- The gross written premium on motor civil liability insurance (OC) amounted to PLN 2.3 billion (an increase by 19.5%)
- The gross written premium on comprehensive Auto Casco (AC) insurance amounted to PLN 1.6 billion (an increase by 13.3%)
- The technical loss on motor civil liability insurance (OC) amounted to PLN 315.5 million
- The technical result on comprehensive Auto Casco (AC) insurance amounted to PLN 52 million
– In Q1 2016, the increase in premium on motor civil liability insurance (OC) was almost equal to the increase in payments. On one side, it shows to which extent the level of coverage of the injured in accidents is increasing, but on the other, that the fuller coverage must have an impact on the price – says Andrzej Maciążek, the Vice-President of the Board of PIU. – It is also worth adding that in Q1 2016 the share of reinsurers in the premium in motor civil liability insurance (OC) has increased over twice. It means that insurers expect further growth of payments from motor civil liability insurance (OC) and, for this reason, they take even more conservative attitude towards the issue of reinsurance – explains Andrzej Maciążek.
Comparing the data after Q1 2016 YoY one should remember that the reference period (i.e. Q1 2015) is the last one before the entry into force of the guidelines of the Polish Financial Supervision Authority on motor claims adjustment. Therefore, more reliable conclusions regarding the current situation in the motor insurance in Poland will be available not earlier than after the results for Q2 2016.
Non-life insurance market (Section II exclusive of motor vehicle insurance).
- The total premium on non-life insurance (exclusive of motor insurance) amounted to PLN 3.7 billion and was higher by 2.9% 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 1 billion, YoY decrease by 7.5%), insurance against other property damage (PLN 0.5 billion, decrease by 5.9%) and motor civil liability insurance (OC) (PLN 0,5 billion, YoY decrease by 7.5%).
Life insurance market
- The value of the premium on life insurance amounted to PLN 5.7 billion (a decrease by 20%)
- The value of benefits from life insurance amounted to PLN 4.5 billion (a decrease by 13.7%)
- The value of the premium on insurance from the ICF amounted to PLN 2.4 billion (a decrease by 33.1%)
– Changes in the life insurance market are first of all an effect of new regulations, particularly the new Act on insurance activity which has been in force since the beginning of the year. We observe a decrease in sales of insurances from the ICF, both those of a protective and investment and those of purely investment nature; however, the adjustment of insurers to the new act may bring as a result a wider offer of products of a protective nature, which at the same time will allow for making additional savings and provide a long-term, stable capital to the economy – says J. Grzegorz Prądzyński, the President of the Board of PIU
Financial results of insurers
The net profit of life insurers after the Q1 2016 amounted to PLN 578 million and was by 13.4% lower than a year ago. Non-life insurers ended Q1 2016 with the profit of PLN 49 million (a decrease by 87.7%). The technical result on life insurance amounted to PLN 766 million and was by almost 24% higher than a year before. The technical result of non-life insurers amounted to PLN 6.1 million and was by 98.4% lower than after Q1 2015. The income tax due from Polish insurers after Q1 2016 amounted to approx. PLN 198 million. According to the estimates of PIU, in Q1 2016 insurers paid slightly over PLN 100 million tax on assets.