On February 16, 2017 the Financial Supervision Authority published a report on the state of the insurance sector after the third quarter of 2016. The report presented the basic information about the financial performance of the insurance sector aggregated on the basis of financial and statistical reports for the third quarter of 2016 as well as the trends observed in the insurance sector during this period with an attempt to explain and justify the changes identified. According to the report, the written premium of the insurance sector at the end of the third quarter of 2016 was 40.70 billion PLN and was lower by 0.18 billion PLN than in the corresponding period in 2015.
Gross written premium in section II was higher by 14.15% and amounted to 22.89 billion PLN. There was also an increase (by 1.32 p.p.) of market share in the top 5 insurance companies which amounted to 70.40%. Motor insurance dominated in the structure of direct insurance placed in section, their share was 58.85% of the premium department.
At the end of the third quarter of 2016. gross written premium in section I was 17.81 billion PLN and was lower by 14.48% compared to the same period in 2015. The market share of the top 5 insurance companies in section I was 58.93%, in which 33.67% was covered by PZU Życie SA. Unit-linked life insurance products prevailed in the structure of this section representing 42.70% of the entire section’s premium.
The report indicated that, after the third quarter of 2016, investment income from investments for risk insurance and the risk of policyholders amounted to 7.99 billion PLN, therefore they have increased by 3.71%.
In the analyzed period, the main item of expenses of insurance companies were the costs associated with compensation payments and benefits under insurance contracts. As stated in the Financial Supervision Authority report, during the first three quarters of 2016 Insurance companies paid 26.99 billion PLN on compensation and benefits, along with costs of adjustment of damage and recovery of debt contributors. This value increased by 1.13 billion PLN (by 4.38%), compared to the same period in 2015.
The value of benefits paid by life insurance companies has decreased by 7.21%. Compensation and benefits paid by insurance companies under non-life insurance contracts have increased by 19.34%.
The report stated that at the end of the third quarter of 2016 a permit to pursue insurance activity in Poland was held by 60 national insurance companies – 27 life insurance companies and 32 insurance companies indicated in section II and 1 reinsurance company (PTR SA).
On January 5, 2016 PKO TU S.A commenced insurance activity, on February 29, 2016 TUW PZUW commenced activity followed on March 9, 2016 by Medical TUW.
On October 21, 2016 the insurance company Skandia Life changed its name to Vienna Life TU, Życie S.A. Vienna Insurance.
KNF pointed out that the new act on insurance and reinsurance activities, which entered into force on January 1, 2016, had a significant impact on both the functioning of insurance and reinsurance undertakings as well as the conduct of supervision of the insurance sector. It introduced into the Polish legal system the rules of the directive Solvency II.
