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.
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