Due to the still low rates in TPL, the Polish motor segment recorded another decline in the technical result in 2023. Total motor insurance GWP amounted to EUR 6.5 billion, 8.5% up y-o-y. While GWP growth on the MoD line was of about 14%, on the MTPL class premiums went up by only 1.7% y-o-y.

Gross claims paid by motor insurers amounted to PLN 17.91 billion (EUR 4.12 billion), about 10% up y-o-y. Claims paid grew faster on the MoD line (13%) than on the MTPL one (8.2%).

The overall technical result of the motor insurance lines reached EUR 194.7 million. This result was 28.45% lower than that recorded 12 months earlier, i.e. PLN 1.18billion. While on the MoD line the technical result was a positive one, of EUR 216 million, the MTPL class saw a technical loss of EUR 21.7 million, the first negative technical result recorded since 2016.

The policy of low rates in the MTPL LoB, which has been maintained in recent years, has caused the technical profitability in this segment to deteriorate year by year, while remaining in the black. In 2022 the market of MTPL policies ended the year with a positive balance, recording a result of PLN 247.39 million.

The explosion of inflation combined with the stagnation of MTPL prices meant that it was only a matter of time before these policies started to make losses. Today it is known that this happened at the end of last year, Polish MTPL insurers recording a technical loss of PLN 94.32 million.

On the other hand, technical profitability in the MoD line increased by about 0.54% – from PLN 936.16 million at the end of 2022 to PLN 941.2 million twelve months later.