The Polish newspaper ‘Dziennik Gazeta Prawna’ (DGP) announced that reinsurers’ share in the premium paid in motor insurance sector amounted to 16 %. According to the Polish Financial Supervision Authority in 2015, insurance companies allocated PLN 1.4 billion for reinsurance. It is the highest percentage in the last 10 years. In 1Q 2015, reinsurers’ share stayed at level of 23 % and for the first three months of 2016 insurance companies allocated PLN 537 million.
Andrzej Maciążek, the Vice-President of the Polish Insurance Association, told DGP that increase of reinsurers’ share in MTPL insurance premiums could prove that insurance companies expect increase of compensation payments. On the other hand, the author of the article underlines that insurance companies, which out in motor sector, have noted significant losses. Currently, MTPL insurance is recognized as the most unprofitable products. Losses are caused by low prices insurance and increase of compensation payments. Insurance companies must search for new, additional protection abroad. ‘There is not enough capital at our market to cover it.’ – we read in the DGP’s article.
Apart from transferring part of the risk abroad, insurance companies are trying to improve their financial condition by increasing MTPL insurance prices. Pawel Kuczyński, Ubea.pl, told DGP that in the next 2 years cost of insurance will increase even by 50 %.
