STATISTICS: Poland 3Q2016: Motor insurance still unprofitable despite the increasing premiums

The descendant trend established during the previous quarters in the Polish insurance market continued in Q3, with GWP falling by another 2%, to EUR 9.44 billion. While the absolute driver of the falling trend was again the life insurance segment, it is worth noting also that given the slightly weaker domestic currency has also a saying in the matter. Denominated in Polish Zloty, the GWP figure only shows a stagnant trend.

Life insurance GWP went down by almost 16%, to EUR 4.13 billion. Unit-linked products have recorded the highest decrease rate, losing about 27% of the GWP volume as compared with the 3Q2015 figures. The unfavorable investment environment seems to be the main responsible for the negative trend recorded in the life insurance sales.

Non-life insurance lines generated GWP of EUR 5.3 billion, 12% up y-o-y. Motor insurance lines have seen a strong growth, mostly fuelled by the MTPL segment for which GWP amounted to EUR 1.84 billion, 30% up y-o-y.

The Polish insurers paid out EUR 6.26 billion in compensation and benefits paid to injured persons and other clients, about 2.6% more than a year earlier. Adverse weather conditions led to a significant increase of the claims paid to farmers for damaged crops, so that paid claims for the "other damages to property" class went up by about 74%.

Net profit recorded by life insurers after three quarters of 2016 amounted to PLN 1.7 billion, 26.3% lower than a year earlier. Non-life insurers ended the third quarter 2016 with a profit of PLN 1.2 billion, 37% less y-o-y. The technical result for life insurance amounted to PLN 2.1 billion and was higher than a year earlier by 2.4%. The technical result of non-life insurers amounted to PLN 196 million and was about 52% lower than the third quarter of 2015. The MTPL line remains rather unprofitable despite the increase in tariffs, as higher premiums have first translated into an increasing volume of technical reserves. However, it is expected that in the long run the higher insurance rates will also improve profitability.

Access www.xprimm.com and download the 3Q2016 Polish insurance market.

Related articles

Michael KRUPINSKI, head of PZU, awarded "Insurance Manager of the Year 2016" in Poland

Michael KRUPINSKI, head of the Polish insurance leading group, PZU, has been awarded "Insurance Manager of the year 2016" by the national financial journal "Gazeta Bankowa", while the company won the "Most friendly insurance company" award in the category of motor insurance. The awards have been granted in recognition of PZU's impressing financial evolution last year, as well as of its customer centric culture.

2017-01-12

ON THE MOVE

TOP EVENT

FIAR 2018 - Motor Insurance Conference (I & II): with the right use of technoloogy, clients' expectations and MTPL insurer's profitability may go hand in hand

The first and second parts of the Motor Insurance Conference taking place at FIAR 2018 focused on the new MTPL Law in Romania and the way it changed the market after almost 1 year of implementation, as well as the consequences of the new legislative framework and the operational challenges this brings, but also the most suitable solutions for balancing regulation, insurers' appetites and customer expectations on the MTPL market.

16.05.2018

FIAR 2018: Brokers' Conference (II): digitization and technology are needed for efficient operations, but will not replace the human touch in consultancy

The second part of the Brokers' Conference taking place at FIAR 2018 analyzed the impact of European Union's legislative overhaul - IDD & GDPR -, also bringing into debate study cases and real-life scenarios of what the brokers face on the market, and, last but not least, trying to see whether digitization and InsurTech could truly lead to disintermediation.


15.05.2018

Brokers' Conference (I): Until 1 July, when we will see the final version of the IDD, we cannot say for certain if we are ready and how ready we actually are

The second day of debates at FIAR 2018 started with The Brokers' Conference, the event dedicated to the mediation market in Romania and in the CEE region. The first part of the conference focused on a market overview and also analyzed the challenges of the IDD implementation, as well as the potential impact of IPID for MTPL and PAD.

15.05.2018

INSURANCE IN A DIGITAL WORLD Conference: capacity, consistency and culture are the three key success factors in the digital transformation of insurers

The INSURANCE IN A DIGITAL WORLD Conference, taking place at FIAR 2018, brought into debate the impact of digitization on the insurance industry. The first part of the conference focused on risks & opportunities of digitalization for both industry and consumers, as well as case studies and best practices: BigData & IoT, BlockChain, Peer-to-Peer, and AI.

14.05.2018

Insurance Market Trends Conference (II): GDPR and IDD, European regulations affecting all business lines, as well as the compliance with the Solvency II framework, are the main challenges ahead for the Romanian market

During the second part of the Insurance Market Trends Conference, taking place at FIAR 2018, the debates focused on the current situation in Romania and the sustainable development for a growing and stable insurance market, as well as the challenges and opportunities for the local insurers.


14.05.2018

See all