On 24 November 2011 in Pure Sky Club, the ceremony of awarding prizes in the competitions of the PIU — for journalists and students — was held. Below: a gallery of photographs of that event.
Persons awarded in the Leon Kozicki Competition for the best dissertations:
1. Jakub Stępień
2. Dominika Fudała
3. Maria Magdalena Kozber
All dissertations were defended at the Poznan University of Economics.
Persons awarded in the journalist competition of the PIU:
1. Insurance Journalist of the Year — Robert Lidke
2. Debut of the Year — Sylwia Wedziuk
3. Editor of the Year — Rzeczpospolita
4. Special Prizes — Zuzanna Reda and Mariusz Gawrychowski
The Polish Insurance Association announces that the 2011 Leon Kozicki contest for the best dissertations on the subject of insurance is now finished. The Evaluation Committee composed of: Professor Irena Jędrzejczyk, PhD; Wojciech Nagel, PhD; Professor Kazimierz Ortyński, PhD; Jan Piątek, PhD; Witold Walkowiak, PhD and Marcin Łuczyński chose the best theses of all those submitted for the contest.
The first prize is awarded to Jakub Stępień for the dissertation entitled “Managing liquidity in an insurance company at the time of turmoil in financial markets”. The thesis was supervised by Jacek Lisowski, PhD, of the Poznan University of Economics.
The second prize is awarded to Dominika Fudała for the dissertation entitled “The Open Method of Coordination in old age security schemes”. The thesis was supervised by Professor Jerzy Handschke, PhD, of the Poznan University of Economics.
The third prize is awarded to Maria Magdalena Kozber for the dissertation entitled “Patient co-payment in Polish, German and Swiss healthcare systems”. The thesis was supervised by Magdalena Osak, PhD, of the Poznan University of Economics.
We wish to congratulate all the winners and thank all the remaining competitors for taking part in the contest.
Robert Lidke became this year’s “Insurance Journalist of the Year”. In the 8th edition of the Competition for journalists, the Management Board of the PIU decided to award his programmes broadcast by Polskie Radio Program I and TV Biznes for their interesting and professional way of presenting current insurance issues.
The award in the “Debut of the Year” category was granted by the Management Board of the PIU to Sylwia Wedziuk for articles published in “Miesięcznik Ubezpieczeniowy”. Her works were distinguished above all for the clarity of their message and the conscious selection of current topics.
The Management Board of the PIU also decided to honour the daily “Rzeczpospolita” with the “Editor of the Year” title for regular publication of articles on insurance-related topics, as well as for their high quality and educational values.
This year, exceptionally, two awards not covered by the regulations of the competition were granted. They went to Zuzanna Reda for articles published in “Rzeczpospolita” and Mariusz Gawrychowski for articles published in “Dziennik Gazeta Prawna”. The Management Board of the PIU stressed that the interest of those two authors in insurance topics bore fruit in the form of intelligible, interesting and highly merits-related publications.
The value of the bancassurance market as at the end of June this year exceeded PLN 9 billion. The importance of this distribution channel can grow within the nearest months.
According to the first publication of data on bancassurance in Poland, created by the Polish Insurance Association, almost nine out of ten life insurance products sold through banks are policies connected with a bank product. Insurance products not connected with a bank product (the so-called stand alone insurance) account for 7.5% of insurance-covered clients, whereas investment products — for 4.5%. It should be noted, however, that the last group of products, according to data as at the end of June 2011, accounts for over 90% of premium written.
With respect to property insurance, the highest premium written applies to financial insurance connected with mortgage loans (37.2%) and insurance of flats and houses (27.2%). — In the case of life insurance companies, bancassurance sales account for over 50% of premium written. In property insurance, this figure is approx. 7%. From the perspective of the entire insurance market, bancassurance constitutes almost 35% of the premium. According to the estimations of the PIU, this percentage can grow within the nearest months — explained Małgorzata Knut, Head of the Bancassurance Team at the PIU. — We expect an increase in the sales of saving insurance policies, which is due to, above all, the planned change of rules of calculating capital gains tax and larger interest of clients in investment products responding to their retirement needs — added Małgorzata Knut.
Initiatives of the PIU relating to the bancassurance market relate not only to collecting financial data. — The growing importance of this distribution channel also means growing responsibility for the client. Initiatives started together with the Polish Bank Association and aiming at introducing good practices in the bancassurance market are a consequence — said Jan Grzegorz Prądzyński, President of the Management Board of the PIU.
Within the last three years, principles of good practices relating to protective products and financial insurance accompanying mortgage loans were created. Next year, the third recommendation will be ready, this time covering investment insurance.
The value of direct market in Poland is likely to exceed PLN 1 billion at the end of this year. Data on sales via the telephone and the Internet, presented by the PIU for the first time, show that after the first half of this year, premium collected in this market exceeds PLN 500 million.
Within the direct system, we primarily buy motor insurance, 57 percent of which is the TPL insurance of motor vehicles. Motor hull insurance, on the other hand, constitutes more than 24 percent. Other types of insurance sold via the telephone and the Internet include the following insurance policies:
• accident and sickness insurance (9.9 percent)
• assistance (5.5 percent)
• other property insurance (such as household or flat insurance) (2.29 percent)
In general, in the first half of this year, almost 2.9 million insurance contracts were concluded online or via the telephone. For the record, the value of remote sales at the end of 2010 accounted for 3.3 percent of Section II insurance sales realized in Poland by Polish and foreign insurance companies. In the area of motor insurance, this was over 5 percent.
Owing to the initiative of the Polish Insurance Association, it was possible, for the first time, to accurately determine the Polish direct market value. Until now, any statements on the telephone and the internet insurance sales mentioned only the estimates. — Works on data collection and setting the definitions of various concepts took about a year. I am glad that we finally possess full and confirmed knowledge of the size of the market in which we operate. Both the insurers and the customers perceive the Internet and the telephone as increasingly important insurance sales channels. We expect that, by the end of this year, the dynamics of the market will reach nearly 40 percent, and its major outcome will be the increase in non-motor insurance sales — emphasizes Paweł Zylm, the Head of PIU Direct Insurance Team.
Direct is one of several market segments to be monitored by the PIU on a regular basis. — Collection of aggregate data, which was so far not generally available, is one of the important tasks of the Association. We intend to publish, in the near future, data on other parts of the market, such as bancassurance — says Jan Grzegorz Prądzyński, President of the Management Board of PIU.
PIU also puts great emphasis on the education of clients and potential clients of the insurers. Evidence of this is a website dedicated to direct insurance.
– Signals from insurance companies clearly indicated that customers’ knowledge about the sales of insurance policies via the telephone and the Internet is not sufficient. Direct is associated with information of various types that has nothing to do with reality. We wanted to create a place that makes anyone who has any doubts be able to enrich their knowledge about insurance sold on a remote basis — says Jan Grzegorz Prądzyński.
Presentation of data on direct market
Please feel invited to read the study which contains a detailed description of the health care and additional insurance systems in Poland and other European countries. The work is a preview of the report of the Polish Insurance Association and the Employers’ Union of Innovative Pharmaceutical Companies INFARMA, entitled “The role of private health insurance in the health care system. Its impact on the availability of services, innovation and medicines – key propositions and recommendations” which was prepared by Sequence HC Partners, a research and consultancy company.
The participants of the panel concurred that the basic question about health insurance is not “whether to introduce it” but “of what type?” and “when?” — the health care system must be reformed and must become effective. The act on additional health insurance is prepared and will be passed shortly after the parliamentary elections. It is necessary to work out a definition of additional health insurance, to determine the relations between service providers and NFZ (the National Health Fund) and to safeguard patients’ rights — said Jakub Szulc, Deputy Minister of Health.
Representatives of PIU (the Polish Insurance Association) pointed out that there is a large group of Polish citizens who are prepared to pay an additional, voluntary health insurance premium in exchange for a better quality and availability of medical procedures. — Additional insurance must be a part of the system. This would be beneficial not only to patients, but also to service providers and the state. However, in order for this to become a reality, we need appropriate regulations. That is why I am calling for the Ministry of Health to act with courage — said Jan Grzegorz Prądzyński, President of PIU Management Board.
The participants emphasised the fact that a lack of legal regulations is the main reason for the underdevelopment of the Polish health insurance market. Consequently, even though Poles spend over PLN 30 billion yearly on services and medication provided by the private sector, insurance constitutes only ca PLN 160 million out of this amount. — A joint partnership initiative of INFARMA and PIU is a response to the lack of statutory regulations connected with private health insurance and with the recently-passed act on reimbursement of medicinal products. The freezing of spending on pharmaceuticals at the current level and the fixing of official prices and margins resulted in the creation of space for insurance products associated with the reimbursement of medicines — said Paweł Sztwiertnia, CEO of INFARMA.
Paweł Kalbarczyk, Board Advisor at PIU and the debate’s chairman, underscored the fact that currently 95 percent of private spending on health care comes directly from patients’ pockets, which is highly ineffective. — The only solution that makes sense is the institutionalised purchase of services —emphasised Jan Grzegorz Prądzyński.
According to the participants of the panel, the reform should be divided into three stages. The first one would consist in introducing additional insurance and generating competition between service providers. Another task should lie in the elaboration of a detailed basket of guaranteed medical services. — The state is giving rise to a situation where it promises almost everything but is unable to deliver on its promises — said Marcin Matczak, PhD, partner at the Domański Zakrzewski Palinka legal firm.
According to Professor Tadeusz Szumlicz, the development of an Additional Health Insurance market would be aided a great deal by a tax relief for people taking on the additional insurance. — If the state is unable to provide social security, then it should not tax private expenditures — pointed out Professor Szumlicz.
The third and final stage of the health system reform should be the emergence of full competition among payers — public and private ones.
The panel organised by PIU and INFARMA took place on 8 September 2011. Participants of the panel:
• Jakub Szulc, Secretary of State in the Ministry of Health
• Marcin Matczak, PhD, Partner at the Domański Zakrzewski Palinka legal firm
• Professor Tadeusz Szumlicz, PhD, Warsaw School of Economics, Medical University of Łódź
• Krzysztof Łanda, PhD, Chairman of the Watch Health Care Foundation
• Jan Grzegorz Prądzyński, President of PIU’s Board
• Paweł Sztwiertnia, CEO of INFARMA
The debate was chaired by Paweł Kalbarczyk, Board Advisor at PIU.
Additionally, during the panel a study was shown which is the first Polish work to provide a detailed description of the Polish health care system as well as the systems of other European countries. The study contains comprehensive data on additional insurance and spending on medical treatment and pharmaceuticals.
The work is a preview of the report of the Polish Insurance Association and the Employers’ Union of Innovative Pharmaceutical Companies INFARMA, entitled “The role of private health insurance in the health care system. Its impact on the availability of services, innovation and medicines” which was prepared by Sequence HC Partners, a research and consultancy company.
The role of private health insurance in the health care system. Its impact on the availability of services, innovation and medicines — key points and recommendations.
Data collected by PIU suggests that in the first half of this year non-life insurers paid out just under PLN 7 billion to their clients. Life insurance benefits reached PLN 12.3 billion. As compared to 2010, which was a very difficult year, one may describe the present situation on the insurance market as stable.
Motor insurance market
MTPL insurance premiums exceeded PLN 4.1 billion, while the total amount for motor hull insurance reached almost PLN 2.9 million. In both cases a year-on-year increase of ca. 15 percent was noted, stemming from the adjustment of rates to difficult market conditions, which had been already been visible in the preceding quarters. The indemnity values, which have been on the rise for several years, combined with stable insurance prices, resulted in losses which companies could no longer accept. — The basic duty of an insurer is to guarantee to the clients the security of money that is disbursed and deposited. This is made possible by adjusting prices to the risk level. We should remember that the group which is always most affected by price increases is the irresponsible drivers who cause accidents. That is why it pays off to drive safely — says Jan Grzegorz Prądzyński, President of PIU Management Board.
As part of the motor insurance segment, companies paid out PLN 2.7 billion-worth of compensation under MTPL and almost PLN 2 billion under motor hull insurance.
Non-life insurance market (excluding motor insurance)
Apart from the motor segment, another segment with the biggest share in section II was that of policies against fire and natural disasters. In this class, too, an increase in the collected premiums was visible – from PLN 1.4 to 1.69 billion. This increase might, too, have been a result of the necessity to adjust rates to market conditions, especially in the context of last year’s floods, in the wake of which insurers had to pay out indemnities amounting to ca. PLN 1.7 billion.
Life insurance market
As regards the life insurance market, the decrease in premiums was halted within class I (protection products, short-term bank policies, structures). The premium for these types of products amounted to PLN 9.2 billion and exceeded the previous year’s sum by 1.2 percent. A significant increase was also observed in class III (unit-linked products). The premium in class III came to PLN 5.2 billion, which means an increase by as much as 40 percent as compared to the previous year. – I would like to see these figures as evidence that more and more people are thinking not only about security, but also about making savings towards their pensions. It is worth remembering that investment policies are long-term products. They work best if given a dozen or so years or even several decades – says Jan Grzegorz Prądzyński.
At the same time, there is still a large group of clients who choose to close their savings and investments policies, as evidenced by the substantial, 30-percent increase in the value of benefits under such products.
The technical result and profit
Both life insurance companies and non-life insurers achieved a positive technical result (it is the result from their core business). The net profit from life insurance amounted to PLN 1.7 billion, representing a decrease by 7.9 percent as compared to the previous year. The profit recorded by non-life insurers came to PLN 2.6 billion, that is almost 15 percent less than the previous year’s figure. It should be pointed out that the actual picture of profits on the non-life market is heavily influenced by the dividend paid on a yearly basis to the biggest Polish insurance company by its subsidiary – a life insurer. This dividend not included, the profit recorded by the non-life market at the end of the first half year would come to PLN 666.17 billion.
Detailed numerical data concerning the insurance market after Q2 2011 can be found in the table attached to this release.
On 1 February 2011, in the Criminal Association, the Supreme Court examined the cassation filled by the convicted Grzegorz N. regarding the judgment of the Court of Appeal in G. dated 23 March 2010, changing the judgment of the Regional Court in G. dated 4 November 2009.
The criminal proceedings related to a series of offences against property, including theft of cars, committed as part of activities of a criminal group acting also to the detriment of insurance companies.
During the proceedings, courts of particular instances imposed on Grzegorz N. and then upheld an obligation to redress damage inflicted also by committing offences under Article 291 § 1 of the Criminal Code, i.e. deliberate handling of stolen goods.
In the cassation, the defence attorney of Grzegorz N. accused the judgment of the Court of Appeal in G. dated 23 March 2010 of a violation of law consisting in regarding persons whose interest protected by law in the form of property was directly infringed by the perpetrator of thefts and robberies as injured persons also in relation to offences qualified under Article 291 § 1 of the Criminal Code (deliberate handling of stolen goods) and, as a consequence, under Article 49 § 3 of the Code of Criminal Procedure, regarding also insurance companies as injured persons to the extent to which they covered damage caused to directly injured persons by criminal appropriation of their cars. In view of the complainant, in offences against property, there are no intermediate links between the act and the infringed interest protected by law only in the case of offences relating to direct appropriation of property, e.g. thefts, burglaries or robberies, not in the case of handling stolen goods which relates to secondary trade in property acquired as a result of an offence which primarily infringes an injured person’s interest protected by law. In view of the complainant, this means that in accordance with Article 49 § 3 of the Code of Criminal Procedure and Article 46 § 1 of the Criminal Code, insurance companies cannot be regarded as injured persons and beneficiaries of the obligation to redress damage inflicted by the offence of handling stolen goods, even if they covered the damage and timely filed a relevant motion in the court.
The Supreme Court in its judgment dated 1 February 2011 (ref. No III KK 243/10) expressed an opinion that a fence by his conduct causes damage to the property of the owner of an item being the object of the offence of handling stolen goods in the same way as in the case of a theft, robbery or theft with burglary because he disposes of stolen cars as if he were their owner and, as a result, interferes with the injured person’s interest, i.e. the ownership of a car, to a similar extent as a thief.
Therefore, the Supreme Court resolved that insurance companies which are regarded as injured persons under Article 49 § 3 of the Code of Criminal Procedure to the extent to which they covered damage caused to owners of stolen vehicles subject to handling stolen goods may file motions to redress damage and be addressees of obligations imposed on the accused under Article 46 of the Criminal Code.
As a result of amendments introduced by the Ministry of Science and Higher Education to the deadlines for undergraduate and graduate examinations, the deadline for PIU theses submission has been changed.
Final examinations will mostly be held in June, July and September. Therefore, we decided to adjust the competition schedule to this year’s examination schedule.
The deadline for submitting the PIU theses has been prolonged until 30 September 2011.
We invite you to participate in the competition!
