POLAND: Insurers paid claims and benefits worth EUR 4.8 billion in 1H

6 September 2022 — Daniela GHETU
Polish insureds received nearly PLN 22.5 billion (~EUR 4.8 billion) in insurance claims and benefits in 1H2022, according to the data of the Polish Chamber of Insurance (PIU), which is 12.9% more y-o-y. Most payments related to property damage, mainly concerning fire and other elements.

Most of the increase in property claims came from the higher payments in the area of property damage. Compared to the previous year, significantly more damage from storms, hailstorms and fires has been reported, not only in the number of claims files, but also in average value terms, PIU representatives said. Claims paid for fire and other elements insurance reached almost PLN 1.3 billion in 1H2022, up by 66.5% y-o-y. At the same time, Poles have spent 6.8% more y-o-y on property protection.

According to PIU data, the disbursements under insurance guarantees also increased compared to the previous year. "It is worth noting that 2021 was specific because many construction projects implemented by the public sector, secured by insurance companies, were at the beginning of their implementation. At this stage, most often there is no demand for payment of amounts under the guarantee. In addition, insurance companies recovered a large part of the amounts under recourse, which significantly reduced the total amount of guarantee payments for the first half of 2021," PIU's press release said.

Yet, motor products account for the largest share of claims in the non-life sector, their value increasing compared to last year. Compensation and benefits from the obligatory MTPL insurance amounted to PLN 4.8 billion, up by 6.3% y-o-y. Compensation for Motor Hull amounted to PLN 3.1 billion, up by 10.8% y-o-y.

The average premium for the compulsory MTPL insurance in 1H2022 was PLN 482.4, down 1.2% y-o-y, while at the same time, the average paid claim value increased by 5.2% y-o-y, to PLN 8,769.5.

On July 18, new recommendations of the Polish Financial Supervision Authority (KNF) were published, which will have a significant impact on repair costs. They will enter into force on November 1st this year. Insurers are legally obliged to ensure that the premiums they collect from drivers cover at least the costs of paid claims and the costs of their business. Higher damage costs mean higher policy prices for customers. Hence, increases in TPL prices are very likely and they will reflect inflation, KNF recommendations, more expensive repairs, and supply chain breaks.