Insurers’ approach to the policies they offer in the coming year will be affected by many of this year’s developments such as changes in the law, macroeconomic factors, and weather.
- third-party liability prices vs. penalty points
On January 1, 2022, the traffic law changed. Dangerous drivers and intoxicated drivers have to be prepared for harsher penalties and higher fines. Penalty points will be removed from the driver’s account only after two years and from the date of paying the fine, and their number will be reflected in the price of the mandatory third-party liability insurance. Insurers will be able to check the driver’s history in the Central Register of Vehicles and Drivers and on that basis determine the amount of the premium.
„On this basis, the driver will be able to, for example, receive a discount for safe driving, and after calculating the price, the insurer will remove the driver’s data from its system. Will it motivate drivers? Time will tell. This type of solution is successfully used by other countries, such as the United States, United Kingdom, or Ireland. Some experts predicted in 2021 that linking third-party liability rates with penalty points will increase prices. In fact, we should not be afraid of that” – said Damian Andruszkiewicz from Compensa TU S.A. Vienna Insurance Group.
- inflation in the automotive industry
Price increases can now be seen in almost every sphere of life, including the automotive industry. The prices of cars, their parts, and services in workshops are increasing. This has a direct impact on third-party liability and fully comprehensive insurance. The sums of insurance determined a few months ago for many cars do not reflect their current value on the secondary market. As a result, the compensation paid after theft or so-called total loss may not be sufficient to purchase a new vehicle. What’s more, more expensive parts and services translate into higher claims handling costs. Insurance companies, in order to maintain profitability in third-party liability and fully comprehensive insurance, will increase the prices of policy premiums in 2022.
- new technologies in insurance
Accelerated by the pandemic, the development of technology can also be seen in the insurance industry. Existing IT solutions are being extended and new ones implemented. In the case of motor insurance, this means above all an increase in the popularity of applications for independent loss adjustment.
„In our case, if the customer accepts the damage assessment, the payment is made in real-time. In other words, only a few hours pass from reporting the damage to receiving the money. This is far below the market standard, which should be estimated at about 3 days”. – a Compensa expert said.
- higher minimum wage and the penalty for lack of obligatory third party liability
Penalties for lack of obligatory third-party liability are granted by the Insurance Guarantee Fund. The rates depend on the type of vehicle, the period of time without insurance, and the minimum wage in the year of inspection.
In 2022, the minimum salary will increase to 3010 PLN, which will increase the penalties for the uninsured. The maximum fee for lack of third party liability more than 14 days is 3 times the minimum wage for trucks, tractors, and buses, and 2 times for passenger cars, and one third for other types of vehicles.