Violent storms and torrential downpours, which passed over Poland in the last days, caused great damages. However, meteorologists warn that the storm season has not yet finished. The Institute of Meteorology and Water Management informs that within the next few days, intense rain showers and hailstorms will be passing over Poland.
Ripped off roofs, damaged cars or flooded flats and cellars – these are the most frequent damages that occur in the storm season. The insurance policies offered by insurers guarantee financial protection against the consequences of storms, hail, strong wind or flood. In 2015 alone, insurance companies paid out PLN 1.35 billion to victims of fire and other natural forces. It rarely happens that the insurance of a house or a flat costs more than a few hundred zloty per year. For this amount you can protect all your possessions. – However, you have to pay attention to the scope of insurance coverage and to the sum insured i.e. a limit, up to which the insurer is liable for losses. It is worth ensuring that this sum is adequate to the value of our property – says Marcin Tarczyński, analyst of the Polish Insurance Association.

What if a calamity strikes us?

Once an insurance event happens, you need to collect the necessary documentation, e.g. photos confirming the real size of the losses. It is also worthwhile to consult the insurer how to start cleaning works after a damage. Remember that flat insurance is often accompanied with the assistance package, which includes professional services, help in the case of evacuation and reimbursement of hotel accommodation costs, e.g. in the case of roof damage and, as its consequence, house flooding. In case of any doubts regarding the manner of reporting a claim, it is enough to contact the info-line of the insurer.

Hail or flooded engine

Remember that weather conditions may also destroy our cars. The standard accident and theft insurance liability ensures repair of the vehicle as well as in the case of a damage to one’s body caused by hail or flooding as a result of wells clogging etc. The comprehensive Auto Casco (AC) insurance covers also damages caused by trees fallen due to strong wind. The terms and conditions of the comprehensive Auto Casco (AC) insurance should be thoroughly studied in terms of exclusions, like those connected with water being sucked by the engine.

Third party liability for damages

What is extremely important, the liability for damages caused to other people, for example, by a fallen tree or a flowerpot that fell down from a balcony shall be incurred by the persons living in the properties, to which these things belong. How to protect ourselves against the financial consequences of these types of events? What is helpful in this case is third party liability insurance (OC) in private life, owing to which the persons injured due to our negligence may count on compensation. It will help to protect the household budget from unexpected and sometimes excessive expenditures. Holding an insurance policy does not release us from the obligation to secure the objects that may be swept away by the wind, like pot flowers or a terrace awning.

 

On 8 June 2016, in the Polish Insurance Association, a presentation was held by prof. Krystyna Szczepanowska-Kozłowska and Justyna Ostrowska, Att. from the Allen & Overy Law Office, A. Pędzich sp.k. “New standard of personal data protection. How to prepare for changes”. Enjoy your reading!

Presentation

In Q1 2016 Polish insurers paid life insurance benefits worth PLN 4.5 billion and non-life insurance compensations and benefits worth PLN 4.3 billion.

Key data after Q1 2016

Motor insurance market

Key figures:

– In Q1 2016, the increase in premium on motor civil liability insurance (OC) was almost equal to the increase in payments. On one side, it shows to which extent the level of coverage of the injured in accidents is increasing, but on the other, that the fuller coverage must have an impact on the price – says Andrzej Maciążek, the Vice-President of the Board of PIU. – It is also worth adding that in Q1 2016 the share of reinsurers in the premium in motor civil liability insurance (OC) has increased over twice. It means that insurers expect further growth of payments from motor civil liability insurance (OC) and, for this reason, they take even more conservative attitude towards the issue of reinsurance – explains Andrzej Maciążek.

Comparing the data after Q1 2016 YoY one should remember that the reference period (i.e. Q1 2015) is the last one before the entry into force of the guidelines of the Polish Financial Supervision Authority on motor claims adjustment. Therefore, more reliable conclusions regarding the current situation in the motor insurance in Poland will be available not earlier than after the results for Q2 2016.

Non-life insurance market (Section II exclusive of motor vehicle insurance).

Key figures:

Life insurance market

Key figures:

– Changes in the life insurance market are first of all an effect of new regulations, particularly the new Act on insurance activity which has been in force since the beginning of the year. We observe a decrease in sales of insurances from the ICF, both those of a protective and investment and those of purely investment nature; however, the adjustment of insurers to the new act may bring as a result a wider offer of products of a protective nature, which at the same time will allow for making additional savings and provide a long-term, stable capital to the economy – says J. Grzegorz Prądzyński, the President of the Board of PIU

Financial results of insurers

The net profit of life insurers after the Q1 2016 amounted to PLN 578 million and was by 13.4% lower than a year ago. Non-life insurers ended Q1 2016 with the profit of PLN 49 million (a decrease by 87.7%). The technical result on life insurance amounted to PLN 766 million and was by almost 24% higher than a year before. The technical result of non-life insurers amounted to PLN 6.1 million and was by 98.4% lower than after Q1 2015. The income tax due from Polish insurers after Q1 2016 amounted to approx. PLN 198 million. According to the estimates of PIU, in Q1 2016 insurers paid slightly over PLN 100 million tax on assets.

Table

We invite you to read the updated guide to the Direct Claims Adjustment System. The system, which was launched on a pilot basis on 1 April 2015, is now being offered by nine insurers. DCA is a system enabling regaining compensation from one’s third party liability insurer and not, as hitherto, from the claim perpetrator’s insurer. DCA has been used in Europe for several decades, among others, in France, Belgium, Spain or Italy.

Presentation

More information and the answers to frequently asked questions may be found on www.zglaszamstluczke.pl.

In Q1 2016, we spent PLN 135 million on private health insurance. According to the data collected by the Polish Insurance Association, this is 18% more than last year.
The number of policyholders in Q1 2016 increased YoY by 31% to 1.57 million. In Poland, private health insurance is usually purchased by employers for their employees or it is purchased by the employees themselves under a group insurance policy. – As regards individual insurances, their considerable part are additional contracts to the protective life insurance. An interesting phenomenon is observed in the non-life insurance market in regard to individual policies. We can see a growing number of contracts with a high average premiums (over PLN 1,000 per year). It means that the number of people who very consciously select private health protection with a wide scope of services is increasing – says Dorota M. Fal, adviser to the Management Board of PIU for health insurance.
Development of private health insurance depends to a great extent on the law in force in Poland and the shape of the overall health care system. – We can be sure that under the current system, the private market will be developing, because people value comfort which the public system does not give. However, without the legislator’s initiative and the introduction of the relevant legal regulations, the private market will still remain a niche – adds Dorota M. Fal.

 

WHOLE MARKETGross premium written [PLN] CUMULATIVELYNumber of the insured [persons] CUMULATIVELY
individual insurancegroup insuranceindividual insurancegroup insurance
1Q 201516,867,04397,600,038197,8261,004,425
1Q 201620,935,654113,970,652285,0651,290,175

 

On 11 May 2016, the General Meeting of PIU granted the “In recognition of service to the insurance industry” awards. The awards were given to the following persons:


Persons proposed by Uniqa TU SA:
1. Andrzej Jarczyk

Persons proposed by Gothaer TU SA:
1. Mariusz Kłosowski
2. Agata Skrężyna-Dudek
3. Hubert Grochowski
4. Magdalena Szczepańska

Persons proposed by Signal Iduna TU SA:
1. Agnieszka Hołubowska
2. Jerzy Świątek

Persons proposed by TU Europa SA:
1. Bartosz Dąbrowski
2. Elżbieta Rajter-Łożyńska
3. Jadwiga Łoś-Ujda

Persons proposed by PZU SA:
1. Ruzica Walkiewicz
2. Barbara Wdowiak
3. Karol Jasik
4. Halina Panek

Persons proposed by Interrisk TU SA:
1. Iwona Borkowska
2. Robert Kowalczyk
3. Bartosz Okrasa
4. Angelika Pietrzyk-Paczosa
5. Grzegorz Kusy
6. Waldemar Kozłowski

The “In recognition of service to the insurance industry” awards may be granted to a natural person employed by an insurance company or an insurance institution, a person working in the interest of the insurance sector, including researchers dealing with the subject area of insurance, or promoting knowledge of insurance, as well as to other natural or legal persons from Poland and abroad who have significantly contributed to the development of insurance in Poland. A proposal for the award may be put forward by members and the President of the Board of the Polish Insurance Association.

On 10 May, Andrzej Lewiński, Deputy Inspector General for the Protection of Personal Data, and J. Grzegorz Prądzyński, President of the Board of PIU, signed an agreement on mutual actions to improve the level of personal data protection. The agreement was signed on the first day of the 4th PIU Congress in Sopot.

According to the agreement, PIU will undertake actions to create a code of conduct in the scope of personal data protection in insurance and reinsurance. The code will be prepared in accordance with the requirements of the general personal data protection regulation, the national laws, and taking into account the specific characteristics of the insurance sector.

Spring and long weekends are good times for trips, and the bicycle has become an increasingly preferable means of transport. City bike systems are introduced by neighboring cities. Unfortunately, cyclists may also become victims or perpetrators of road accidents. According to police statistics, in 2015 cyclists caused 1,644 accidents, in which 1,574 were injured, and 133 died.

In this year, May is an exceptional month in regards to holidays. Two so called “long weekends” fall within this month. The first long May weekend is already behind us. Unfortunately, apart from its pleasant moments it also took its toll of road accidents. Towards the end of the month we will have another long weekend. How can a cyclist become financially protected against road collisions?

The basic form of coverage is third party liability insurance (OC) in private life. This is a voluntary insurance, which will protect a cyclist against paying out of pocket costs such as the costs of replacing a mirror damaged by a cyclist in another person’s car. Before purchasing this insurance, one should check the sum insured, i.e. the limit of costs, up to which the insurer bears liability. In less expensive third liability insurance policies, the sums insured are relatively lower, however, a higher price usually means a higher coverage limit.

– Third party liability insurance (OC) in private life is usually added to the house and flat insurance policy and may also cover damages caused during cycling. That’s why before we buy another policy, it is worthwhile to check the terms of the one we already have. The insurance of our flat may be sufficient also in the context of cycling – says Marcin Tarczyński, analyst of the Polish Insurance Association. – If we do not have the third party liability insurance (OC) in private life, it is worthwhile to get acquainted with the offers of insurers. Some insurance companies offer special packages for cyclists and provide for the possibility to take out a policy for a short time, e.g. for holidays.

Cyclists are more often victims of accidents than their perpetrators. Therefore, it is worth considering the purchase of personal accident insurance (NNW). A cyclist who has got it will receive a compensation due to damages to one’s health or a benefit for staying in the hospital.

Another problem spoiling the pleasure of cycle tours are thefts of bicycles. That’s why insurers offer, like in case of car drivers, comprehensive (casco) insurance. – Whoever selects casco, should get acquainted with the details of insurance coverage. Policies usually cover robbery or damage to a bike as a result of accident(s). More rarely you can get insurance against theft – adds Marcin Tarczyński.

Additionally, cyclists can use the assistance package, which includes, among others, carriage and repair of a damaged bike, medical transport or an appointment with a physician and nurse. As part of this service, a cyclist may also count on an appointment with a psychologist or coverage of the costs of implantology or prosthetics.

 

We invite you to study the brochure “Insurance Figures 2015”, which includes key data on the insurance market in Poland.

Insurance figures

We invite you to study the most recent report on the bank assurance market in Poland.

Report