In the first half of 2016, Polish insurers paid life insurance benefits worth PLN 9.2 billion and non-life insurance compensations and benefits worth PLN 9 billion to clients and the injured.
Key data after the first half of 2016
- PLN 18.2 billion paid to customers and the injured
- PLN 51.7 billion in assets in domestic bonds and other fixed-income securities supporting the economy and public finances
- PLN 22.7 billion of assets supporting the economy, invested on a long-term basis in shares of the companies from the WSE and other fixed-income securities
- PLN 27.2 billion of collected premiums
- About PLN 269 million of paid taxes on assets
Motor insurance market
- The gross written premium on motor civil liability insurance (OC) amounted to PLN 5 billion (an increase of 25.7%)
- The gross compensations and benefits under motor civil liability insurance (OC) amounted to PLN 3.9 billion (an increase of 16.8%)
- The gross written premium on comprehensive Auto Casco (AC) insurance amounted to PLN 3.2 billion (an increase of 17.2%)
- The gross compensations and benefits under comprehensive Auto Casco (AC) insurance amounted to PLN 2.1 billion (an increase of 10.9%)
- The technical loss on civil liability insurance (OC) amounted to PLN 606,5 million.
- The technical loss on comprehensive Auto Casco (AC) insurance amounted to PLN 9 million
– For the first time in many years, we can see a strong increase in motor civil liability insurance premiums (OC) market, which entails a big change in the balance of provisions for premiums. We can still observe a considerable increase in payment, which is a proof that the level of insurance coverage for those injured in accidents has considerably increased. From the balance-sheet perspective, both a change in the balance of provisions and the compensations paid contribute to a decrease in the technical result. In turn, an increase in premiums indicates that insurers are consistently striving to restore the balance in the market of motor civil liability insurance (OC) – says Andrzej Maciążek, Vice-President of the Board of PIU.
Non-life market (Section II exclusive of motor insurance).
- The total premiums for non-life insurance (exclusive of motor vehicles) amounted to PLN 7.1 billion, which was 2.7% higher than the year before.
- The following types of insurance have been instrumental for the non-life premium market: insurance against fire and other natural forces (PLN 1.6 billion, YoY decrease by 0.7%), insurance against other property damage (PLN 1.2 billion, increase by 5%) and motor civil liability insurance (OC) (PLN 1 billion, YoY decrease by 7.8%).
– Non-life insurance shows a remarkable increase in payments of compensations in class 9, i.e. other property damage. The total compensations in this class amounted to over PLN 884 million, i.e. by 152% more than the year before. A jump in the value of compensations paid was caused by huge damages in agricultural crops in Q1 and Q2 of this year, mainly due to frosts – explains Andrzej Maciążek.
Life insurance market:
- The value of the premium on life insurance amounted to PLN 11.9 billion (a decrease of 17.4%)
- The value of benefits from life insurance amounted to PLN 9.2 billion (a decrease of 10.6%)
– After Q2 2016, the effect of regulatory changes in the life insurance market is even more clearly visible. The new Act on insurance and reinsurance activity has evidently caused an increase in the volume of information provided to a customer before taking a decision on concluding an insurance contract with an investment element. Such changes resulted in a decrease in sales of such products, but primarily, they encourage customers to select a service more consciously and limit the risk of not tailoring the product to the customer’s needs. It is worthwhile to remember the continuous discussions on the shape of the pension system in Poland. Voluntary, systematic saving will become more and more important. The life insurance market has been created for the purpose of ensuring long-term financial security and it will remain a key segment of a retirement plan – says J. Grzegorz Prądzyński, the President of the Board of PIU
Financial results of insurers
The net profit of life insurers after the first half of 2016 amounted to PLN 1.1 billion and was 33.4% lower than the year before. Non-life insurers ended Q2 2016 with the profit of PLN 1.1 billion (a decrease of 36.9%). The technical result on life insurance amounted to PLN 1.4 billion and was 4.4% higher than a year before. The technical result of non-life insurers amounted to PLN 114 million and was 77% lower than after Q2 2015. The income tax due from Polish insurers after Q2 2016 amounted to approx. PLN 382.9 million. In the first half of 2016, Polish insurers also paid about PLN 269 million in tax on assets.