STATISTICS: POLAND 3Q2014: sharp decrease in the non-life segment profitability
GWP for life insurance fell by 8.6%, to PLN 21.2 billion, while benefits paid totaled PLN 15 billion, 16% down y-o-y. "The falling popularity of the short-term life insurance products with an investment component had largest contribution to the life insurance GWP's decline," commented J. Gregory PRADZYNSKI, CEO of PIU, also noting that in the third quarter, however, this trend slowed down as compared with the first half of the year when a 14% downsize in GWP was recorded in the first quarter, followed by a 11.3% decrease in the second quarter. He also said that in the near future many uncertainties associated with the legislative changes, as well as with supervisors' actions will still affect the life insurance market, mainly in what the life insurance products with an investment side are concerned. In this respect, "2015 may be a crucial year for the Polish life insurance."
On the non-life insurance side, a 2.5% decrease was recorded in terms of GWP, with most of the main business lines showing a negative dynamic. While GWP have decreased, the overall claims paid remained at a quasi stable level, of about PLN 10 billion. Yet, a closer look one would notice that claims paid for damage caused by natural disasters decreased by about 20%, while the value of the compensations paid for the other damages to property went up by 23%, mostly in relation with damages occurred in enterprises and, to a lesser extent, with losses suffered by the agricultural sector.
According PIU, the technical result of vehicle liability insurance line amounted to PLN -160 million, while the technical result of motor hull insurance amounted to PLN 253.8 million. "The motor insurance market remained highly competitive, resulting in falling GWP volume and deteriorating technical results because of the competitive pricing," commented Andrew MACIAZEK, Vice President of PIU.
Access www.xprimm.com and download the 3Q2014 Polish insurance market statistics.
Market portfolio (in EUR and PLN):
- Gross written premiums
- Paid claims
- Growth rates
- Life insurance ranking
- Non-life insurance ranking