STATISTICS: POLAND 1H: Severe crop damages caused by frost pushed up claims for damages to property by almost 140% y-o-y

After a quasi stable 2015, the Polish insurance market ended the first half of 2016 with an 8% y-o-y decrease in GWP, entirely driven by the decreasing life insurance business.

Life insurance saw a 21.7% y-o-y fall in GWP, to EUR 2.69 billion, thus losing about 7.5 pp of its market weight. Both the main classes of the life portfolio have seen a strong descending trend. According J. Grzegorz PRADZYNSKI, CEO of PIU - the Polish Insurers Association, the negative trend is mostly a consequence of the regulatory changes: "The new law on insurance and reinsurance activities significantly increased the amount of information provided to the customer before making a decision on the conclusion of the insurance contract with an investment component. Such changes result in a decrease in sales of such products, but lead to a more informed choice of services and minimized the risk of mismatch of product needs. It is worth remembering ongoing discussions on the shape of the pension system in Poland. Importance will be gaining voluntary, regular savings. The life insurance market is designed to ensure that provide long-term financial security, and regardless of the shape of savings products, will remain a key segment of pension security." In fact, the decrease recorded on the paid indemnities side (-15%) seem to indicate an improved stability of the life insurance portfolio, with less premature terminations of the insurance contracts.

Non-life lines saw a positive evolution in 1H2016, with GWP increasing overall by 6.45% y-o-y, to EUR 3.47 billion. Still, not all the non-life lines enjoyed the same positive trend.

Property insurance lines have recorded a 3.3% decrease in GWP, most of it coming from the "fire" insurance class for which the GWP volume saw an almost 6% constriction. Yet, it is interesting to observe that, according to the official statistical data provided by the market authority, the number of fir insurance contracts went up as compared with 1H2015: contracts written in the reporting period - from 5.58 million to 7.18 million; contracts in force as of the end of the period - from 9.78 million to 12.73 million.

Moreover, the first half 2016 brought also an increase in the paid claims for property insurance, especially on the class of "Other damage to property" for which paid claims rose by 139%, following the severe damages to crops caused by frost.

Finally, the motor insurance classes recorded a positive trend in premium production both for MTPL and Motor Hull. "For the first time in many years on the Motor Hull market we see a strong growth in premiums and with it also a large change in unearned premium reserve. Still we also have to deal with significant increases in payments, which is proof of how much increased the level of protection for victims of accidents," commented Andrzej MACIAZEK, vice president of PIU's management board.

Net profit amounted in 1H2016 to PLN 1.1 billion in life insurance (33.4 % lower y-o-y) and to PLN 1.1 billion in non-life (36.9 % down y-o-y). The technical result for life insurance amounted to PLN 1.4 billion (+ 4.4%) and to PLN 114 million in non-life (77% down).

Read more about the Polish insurance market evolution in 1H2016 in the forthcoming issue of XPRIMM Insurance Report 1H2016, to be released on October, 23rd, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal).

Access www.xprimm.com and download the 1H2016 Polish insurance market.

Market portfolio (in EUR and PLN):
  • Gross written premiums
  • Paid claims
  • Growth rates
Market rankings in EUR and PLN (GWP/Market shares/Growth rates):
  • Life insurance ranking
  • Non-life insurance ranking

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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