This is what statements by participants of the panel "2021 perspectives for the insurance industry – opportunities and threats" at the Karpacz Economic Forum could be construed to indicate. The panellists discussed whether this trend will continue into 2021 and how the pandemic will affect the sector in the long to medium term.
There is potential in the market
Jan Grzegorz Prądzyński, President of the Polish Chamber of Insurance, pointed out that after the pandemic, Poles have become more concerned about the death and illness of their loved ones, as well as about the lack of money for the treatment of serious illnesses.
"These concerns are the same regardless of age, gender and location. This is why sales of life and health insurance policies are on the rise. Motor vehicle insurance sales are also rebounding and returning to pre-pandemic levels following their earlier decline", Mr Prądzyński explained. In this case, however, there is a massive increase in claim handling costs due to rapidly increasing auto part and labour costs.
Małgorzata Sadurska, Management Board Member at PZU, said that the pandemic has changed the way insurance companies work, but most of all, it has increased insurance awareness among customers. She emphasized that despite the more difficult financial situation of many families, Poles did opt out of insurance. Conversely, they recognised the value of insurance as a means of ensuring financial and health security for themselves, their families, and in the case of entrepreneurs, also for their employees and business.
"This is also evidenced by PZU's results in the first half of this year, when gross premiums written totalled a record PLN 12.3 billion and the policy sales increased both in life and non-life insurance areas", Małgorzata Sadurska remarked.
