During the three quarters of 2023, insurers paid out PLN 33.1 billion in compensation and benefits. This is 1.6% less than the previous year. This was influenced by a reduction of PLN 2.2 billion in compensation and benefits from life insurance.
Key figures:
– Insurers paid out PLN 33.1 billion in compensation and benefits to victims, including:- PLN 13.2 billion from motor insurance (liability and comprehensive insurance),
– PLN 7.6 billion from other property and personal insurance,
– PLN 12.3 billion from life insurance.
– We allocated PLN 57.7 billion to insurance, 9.4% more than the previous year.
– Insurers allocated PLN 94.1 billion of assets in bonds and other fixed-income securities to support the economy and public finances.
– PLN 17.8 billion of assets were placed in shares of companies from the Warsaw Stock Exchange and other variable income securities.
– Insurers paid PLN 1.37 billion in income tax.
Motor insurance
Payouts from motor insurance accounted for 63.4% of all compensation and benefits paid from property and personal insurance. After the third quarter of 2023, they exceeded PLN 13.2 billion, an increase of 9.2%.
Motor insurance:
– PLN 7.8 billion was paid to victims as part of compensation and benefits from mandatory car insurance, an increase of 7.9% compared to the previous year.
– Insured people received PLN 5.3 billion in compensation from comprehensive car insurance, an increase of 11% compared to the previous year.
“The average damage from car insurance was almost PLN 9.5 thousand. For comparison, in the third quarter of 2021, it was PLN 7.8 thousand, and in the same period in 2022, it was PLN 8.2 thousand. This increase is driven by the rising costs of repairing damaged cars. Considering the still high inflation, we expect to continue this trend, which may ultimately affect the premiums for car insurance paid by all drivers,” says Jan Grzegorz Prądzyński, President of the Polish Insurance Chamber.
Total income from car insurance premiums was PLN 11.7 billion, an increase of 3.7%. Poles spent PLN 9.2 billion on comprehensive car insurance, an increase of 15.3% compared to the previous year. In the three quarters of 2023, 5.6 million comprehensive insurance contracts were concluded, 13.4% less than the previous year. However, the value of insured vehicles is increasing.
Property insurance
After the three quarters of 2023, there was a decrease in payouts in property insurance from fire and other forces of nature. They reached PLN 1.7 billion in total, almost a 12% decrease compared to the previous year.
Life insurance
Payouts from life insurance policies after the third quarter of 2023 amounted to PLN 12.3 billion, of which PLN 4.8 billion were payouts from protective life insurance. This was 14.9% less than in the same period of the previous year.
Insurers’ finances
Insurers are the second largest institutional purchaser of treasury bonds after banks. At the end of the third quarter of 2023, they placed PLN 94.1 billion of assets in bonds and other fixed income securities, supporting the economy and public finances. Additionally, PLN 17.6 billion of assets were placed in shares of companies from the Warsaw Stock Exchange and other variable-income securities. The net financial result of the insurance market was PLN 8 billion, and the paid income tax amounted to PLN 1.37 million.
Examples of insurance claims from the third quarter of 2023 include a premature birth requiring an insurer payout of PLN 3,000, a stroke leading to an insurance payout of PLN 35.2 thousand, and bladder cancer resulting in a compensation of PLN 51.3 thousand.
