Gross premiums written by Polish insurers in Q1 2024 reached EUR 5.1 billion (PLN 21.94 billion), which is 18.55% more y-o-y, in European currency. This very high growth rate is an effect of the appreciation of about 9% y-o-y of the Polish zloty. Calculated in Polich currency, the market growth was of slightly above 9%.

According to information provided by the Polish Chamber of Insurance (PIU), 23 million life insurance contracts were concluded in 1Q, out of which 11.2 million contracts were concluded by individuals, while11.9 million contracts were concluded in the form of group insurance. This number is comparable to the previous year. The total life insurance premium amounted to EUR 1.36 billion (PLN 5.9 billion), which is an increase of 6.0% y-o-y (in PLN). Jan Grzegorz Prądzyński, President of the Management Board of PIU emphasized that the life insurance segment’s growth is a proof the increasing interest of Poles in protection and accident products, a positive trend especially considering the low level of savings and high degree of indebtedness of the Polish population.

Non-life insurance GWP reached EUR 3.74 billion, 19.8% up y-o-y (PLN 16.08 billion, 10.23% up y-o-y). Motor insurance continue to hold the largest share in the non-life business, of 47.4%, almost unchanged y-o-y. The Q1 results show that motor insurance is responsible also for the largest share of the compensations paid by the Polish insurers.

Compensations and benefits from compulsory MTPL insurance amounted to EUR 704 million, 23% up y-o-y (PLN 3.03 billion, 13.2% higher y-o-y), while GWP increased by only ~16%, to EUR 966.52 million. Despite the increase in damage costs, the average MTPL premium increased by only 3.7% and amounted to PLN 527. The average loss from MTPL insurance increased by 12.7% y-o-y and after Q1 this year amounts to PLN 9,960. “We expect corrections in motor insurance. Inflation, rising costs of claims settlement, including medical procedures, must be reflected in premiums, which is what insurers are required to do by regulations and supervision. We expect that in 2024 motor insurance prices will grow faster,” said Jan Grzegorz Prądzyński.

Overall, claims paid for motor insurance reached EUR 1.19 billion, 25.87% up y-o-y (PLN 5.14 billion, 15.8% more y-o-y).

As for the property insurance lines (Classes VIII and IX), a calmer first quarter in terms of extreme weather events ended with paid claims only increasing by about 1% in local currency. “The quiet first quarter of the year should not lull us into a false sense of security. In April and May, we received over 20,000 reports of damage related to the wave of frost. Climate risk is constantly present with us, with varying intensity. On average, about 49% of properties are insured. However, many of them are underinsured. Market estimates show that this applies to as many as 3 out of 10 properties,” commented Andrzej Maciążek, Vice President of the Management Board of PIU.

In Q1 2024, insurers paid over PLN 450 million in income tax to the state budget. During that time, they generated almost EUR 395.3 million (PLN 1.7 billion) in net profit, by about 16% less y-o-y.

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