STATISTICS: Polish insurers posted Q3 aggregate profits of over EUR 1 bn

19 January 2022 — Andrei Victor
STATISTICS: Polish insurers posted Q3 aggregate profits of over EUR 1 bn
Polish insurance market totaled PLN 50.9 billion (EUR 10.9 billion) at the end of September 2021, up by almost 7% y-o-y, according to the quarterly market figures published by The Polish Financial Supervision Authority (KNF). Claims and benefits paid by local insurers increased by 2.9% y-o-y to PLN 30.2 billion or ~EUR 6.5 billion.

In life segment, both the premium and the payment of benefits posted increasing rates: GWP worth PLN 16.6 billion, up 7.4%, while the value of payments increased by 5.5% y-o-y to PLN 13.5 billion. There were reported visible increasing sales, especially in protection insurance, "which was certainly influenced by the pandemic and Poles 'fears for their and their loved ones' life and health. The pandemic also had tragic consequences in the form of increased mortality, which translated into higher benefits payments", said Jan Grzegorz PRADZYNSKI, President of the Management Board of the Polish Chamber of Insurance (PIU),

In non-life segment (GWP of PLN 34.3 billion, and claims of PLN 16.7 billion), motor insurance classes (MTPL and MoD), accounted for the largest shares:
  • Motor Hull: GWP of PLN 7.0 billion, claims PLN 4.3 billion
  • MTPL: GWP of PLN 11.1 billion, claims of PLN 6.7 billion
Despite the increase in the cost of claims, the average premium in MTPL is falling. After Q3 2021, it amounted to PLN 486.8, representing a decrease of 2% than a year earlier. At the same time, the average MTPL loss increased by 5.7%, to PLN 8367.7.

In case of MoD, the average premium after Q3 was PLN 993.4, increasing by 1% than a year earlier. At the same time, the average cost per claim increased by 7%, to PLN 6,984.6.

"It is the job of insurers to maintain a balance between payouts and premiums, in order to be acceptable for drivers. We must keep the repairing costs at an economically reasonable level, bearing in mind that it is our responsibility to restore the damaged vehicle to the condition it was in before the damage or to compensate for the material loss suffered by the aggrieved party. However, it is not our duty to maximize the profits of entities providing services related to vehicle repair", said Jan Grzegorz PRADZYNSKI.

After the third quarter of 2021, Polish insurers generated PLN 5.3 billion of net profit (~EUR 1.15 billion), 2.3% more y-o-y. At the same time, local insurers paid almost PLN 1 billion (EUR 215 million) in income tax to the State Budget.

Access and download the latest Polish insurance market statistics.

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