STATISTICS: Poland FY2016: life insurance falling GWP offset by the MTPL premiums' increase

Polish insurers' business remained stable in 2016, with total GWP of PLN 56.04 billion (EUR 12.7 billion), 2.25% up y-o-y in local currency, but slightly decreasing (-1.5%) when denominated in European currency. Life insurance continued to witness a falling trend, especially on the UL products line, which saw a 23% reduction in premiums.

Life insurance segment's weight in the total market GWP decreased from 50.2% in 2015, to about 42.5% at the end of 2016, as GWP fell by 13.33% y-o-y, to PLN 23.8 billion. Life insurance lines providing for products with an investment component are responsible for the segment's decrease in premiums volume. According to a recent PIU (Polish Insurers' Association) statement, the new legislation introduced since the beginning of 2016 led to decreasing sales, but at the same time facilitated a better informed choice of services, which in the long run may help to create a more stable portfolio.

On the non-life side, GWP went up by almost 18% in local currency, to PLN 32.18 billion, mostly driven by the spectacular increase, of 31.3%, witnessed on the motor insurance segment. As Jan Grzegorz PRADZYNSKI, CEO of PIU, recently explained, "the increase in premiums that took place in 2016 prevented the MTPL losses escalation, but it should be stressed out that the increase in premiums forces insurers to set higher reserves, so the full effect of the increases will be visible in the insurer's accounts only after a few, and sometimes several months after their introduction. Currently, the MTPL market remains unprofitable, with a loss of PLN 1 billion."

According PIU preliminary data, the net income of life insurers in 2016 amounted to PLN 2.2 billion (of which 1.5 billion is the biggest life insurer in Poland) and was 26.1% lower than a year earlier.  P/C insurers ended 2016 with a profit of PLN 1.9 billion (of which PLN 1.6 billion belonged to the largest Polish property insurer), a decrease of 24.7%.

The technical result of life insurance was PLN 3 billion and was 6% higher than a year before. The technical result of property insurers amounted to PLN 350 million and was by 56.5% higher than in 2015.

Access www.xprimm.com and download the FY2016 Polish insurance market.

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

Share |

Related articles

POLAND: insurance brokers have mediated GWP of EUR 1.7 billion in 2017

The total number of insurance brokers licensed in Poland at the end of 2017 was of 1,416. Throughout the year, 34 deletions from the register of insurance brokers were made, a Polish Financial Supervision Authority's Report on the condition of the brokerage market in 2017 shows.

2018-12-13

ON THE MOVE

Supervisory Board Chair NN Group steps down

NN Group announces that Jan HOLSBOER, chair of the Supervisory Board of NN Group, has decided to step down as of the close of the annual general meeting (AGM) on 29 May 2019. The Supervisory Board has elected David COLE as Jan HOLSBOER's successor.

20.02.2019

Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.

12.02.2019

TOP EVENT

Inclusive Insurance - just a week to the second edition of IIF - CEE & SEE Regional Actuarial Insurance Conference in Skopje

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

20.02.2019

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

21.02.2019

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

10.01.2019

See all