It is remarkable that even after significant increases in tariffs, TPL insurance is still unprofitable on average, which indicates that further tariff increases are in the pipeline. By contrast, the profitability of life insurers, which has been traditionally quite high, remains in a declining trend. This is driven mainly by lower returns on investments and significantly higher regulatory costs.
Considering the high competition among insurers, continuously growing claim costs, and persisting low returns on investments, resulting from low interest rates, the profitability of insurers will remain under pressure in 2017 and 2018. Most advanced insurers will address the issue of lower profitability with further automation of processes, reduction of operating costs and more sophisticated anti-fraud measures. Also new, innovative solutions will be high on agenda with usage-based insurance, telematics and multi-channel distribution models being a source of competitive advantage. Read the full story POLAND's Insurance Sector to Grow in 2017 But Profitability Under Pressure