Executive Summary Report – July 2019

13 August 2019

The Polish Motor Insurers Bureau (PBUK) has counted over 75,200 motor accidents abroad caused by vehicles with Polish registration in 2018. This is over 200 accidents abroad every day in 2018. The number increased by almost 10,000 accidents (15%) compared to 2017. PBUK estimates that insurance companies paid more than PLN 1.3 billion for the damages caused by insured Poles outside Poland. The majority of these accidents happened in: Germany (51.7% share), France (6.9%), Italy (6.8%) and UK (6.3%). The number of accidents caused by uninsured Polish vehicles increased as well, from 415 cases in 2017 to 493 cases in 2018 (+18.8%), the highest number in the past 8 years. PBUK paid PLN 9 million from its own funds for uninsured cases in 2018, noticeably less than PLN 12 million in 2017 (-26.9%).


On 27 June 2019 the Report from the Commission to the European Parliament and the Council on the application of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking and pursuit of the business of Insurance and Reinsurance (Solvency II) with regard to group supervision and capital management within a group of insurance or reinsurance undertakings was published.This report assesses the benefit of enhancing group supervision and capital management within a group of insurance or reinsurance undertakings, as required under Article 242(2) of the Solvency II Directive.


The Polish insurers’ aggregate GWP (gross written premium) was up by 0.6% y/y to PLN 16.35 billion in the first quarter of 2019, according to the financial indicators from the Polish Financial Supervision Authority (KNF). Official figures also revealed that the amount of paid claims/indemnities during the period was PLN 10.2 billion – it is a decrease of 2.7% y/y.The non-life insurance segment accounted for PLN 11.1 billion of the total GWP (68% of total GWP), while the life-insurance companies contributed the remaining PLN 5.2 billion, which was almost half a million euro less as compared with Q1 2018.


The Government has adopted a bill amending the rules of loans. Under the new regulations lenders will not be able to freely determine additional payments for purchases in installments. It will also be prohibited to add unlimited commission, margins, fees for submitting or processing applications or compulsory insurance. The maximum limit for additional payments for installment purchases will be set at 45 percent of the loan amount per year. If the installments are spread over six months, the additional costs will not exceed 32.5 percent, while the interest limit will remain at the current level, i.e. 10 percent a year. The new rules will apply to short-term loans for small amounts.


On 26 July 2019 the Polish Financial Supervision Authority published its statement on the marketing, distribution or sale of Contracts For Differences (CFD) to retail clients. As KNF reminds, on 31 July 2019 the term of application of European Securities and Markets Authority Decision (EU) 2019/679 of 17 April 2019 renewing the temporary restriction on the marketing, distribution or sale of contracts for differences to retail clients falls. The KNF indicated in the statement that the institution agrees with the arguments raised by ESMA regarding the excessive risk that inexperienced retail clients might incur losses on investments in CFD. The Authority informed that the decision on the determination of terms of offering CFDs to retail clients should be made at the next meeting of the KNF Board.

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