In June 2017 Narodowy Bank Polski (the Polish Central Bank) published a “Financial Stability Report”. The report assessed financial system stability in Poland.
The report stated that technical provisions of insurance companies correspond to the expected value of the sum of claims and benefits which will be paid by the insurance sector to the real economy entities.
They constitute the biggest part of insurance companies’ liabilities. Companies create technical provisions to cover future liabilities to beneficiaries stemming from concluded insurance contracts.
The most important item of liabilities were the provisions of unit linked life insurance. In the case of these insurance policies, the liabilities of companies corresponded to the value of assets collected in unit-linked life insurance. Among other provisions of life insurance companies, liabilities stemming from life and endowment contracts prevailed. This was mostly represented by group and individually continued life insurance.
