The Polish Motor Insurance market after joining the EU

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					The Polish
Motor Insurance
market after joining
the EU
Poland
 Population            38m
 Number of vehicles    15m
 Number of border-
 crossing vehicles     52m
 Number of border-
 crossing travellers   97m
The Polish insurance
market
Compulsory motor insurance

  1958 Law on property and
  personal insurance
  1 January 1962 introduction
  1 January 2004 amendment
  Law on liability insurance,
  guarantee fund and the Bureau
  of Polish Motor Insurers
  (22 Mai 2003)
The Polish insurance
market
Institutions in the insurance law

  Insurance and Pension Fund
  Supervisory Commission
  Insurance ombudsman
  Bureau of Polish Motor Insurers
  Insurance guarantee fund
  Polish insurance chamber
The Polish insurance
market in the EU
 Since 1958
    in the Green Card System
 Full implementation of EU
 Directives
 Implementation of EU
 Recommendation 81/76/EEC –
 Central authority for personal
 damage
The Polish insurance
market
Minimum insured sums:
1. Personal damage per person
                   350,000 €
2. Property damage per incident
                   200,000 €
The Polish insurance
market
Vehicle liability law


    Strict liability/
      fault liability
    Contributory fault
    Direct claim
The Polish insurance
market
Vehicle liability law


 Settlement agreement
 Discovery of accident
 circumstances
 Decision of liability issue
The Polish insurance
market
Vehicle liability law

  Expert costs
  Medical costs
  Lawyer and court fees
  Limitation
The Polish insurance
market fund - tasks
Insurance guarantee

 Compensation:
 1) unidentified liable person –
          personal damage only
 2) uninsured liable person –
     property and personal
     damage
 3) Bankruptcy of insurer
The Polish insurance
market
Insurance guarantee fund - tasks

 Financial assistance for motor
 insurers
 Central register of Information
 Centre
 Control of mandatory motor
 insurance
 Enforcement of financial penalty
 against uninsured car owners
The Polish insurance
market
Bureau of Polish Motor Insurers- tasks

  National Green Card Bureau
  Information Centre
  Compensation body
  Central authority for personal
  damage
  Border insurance
The Polish insurance
market
 Number of motor insurers:
 27 with the 3 FOS Polish licence

 7 bankruptcy cases since 1992
     * 1 life insurer
     * 6 non-life insurers

 Costs incurred for 6 bankruptcy cases
    * VGF        60m €
    * BPKV       12m €
The Polish
insurance market
 Number of claims in Poland,
 foreign liable party
                        9,048
 Number of claims in Europe,
  Polish liable party
                       17,555
 Average Green Card losses
                             4,000 €
 Average losses in Poland
                             1,000 €
The Polish insurance
market in EU
Accidents abroad – Polish liable party

  18000
  16000
  14000
  12000
  10000
                                               17555

   8000             14239    14617
                                      15432
           13102
   6000
   4000
   2000
      0
          2000     2001     2002     2003     2004
The Polish insurance
market
Accidents in Poland – foreign liable party

 10000
  9000
  8000
  7000
  6000
  5000                                         9048
           8071     8215     7993
  4000                                6968

  3000
  2000
  1000
     0
         2000     2001     2002     2003     2004
              Motor insurance premium
5000
4500
4000
3500
3000                                             Written premium in m
2500                                             PLZ
2000                                             Written prmium in m
1500                                             EUR
1000
 500
   0
       1999   2000   2001   2002   2003   2004
       Motor insurance market share
40
35
30
25
20                                             Premium market share
15                                             Loss market share

10
 5
 0
     1999   2000   2001   2002   2003   2004
Motor insurance claims
 3500

 3000
 2500
 2000
                                                  PLN
 1500                                             Euro
 1000
 500
    0
        1999   2000   2001   2002   2003   2004
Rear-end collisions and accidents
                                                   in ‘000
400
350
300
250                                             Rear-end collisions
200                                             Accidents
150                                             Deaths
                                                Injured
100
 50
  0
      1999   2000   2001   2002   2003   2004
EU enlargement
Impact on insurance market
    Direct impact:
       Increase of insurance costs:

       * Reinsurance
       * Claims representative fees
       * Information Centre costs
       * Higher compensation payments
EU enlargement
Impact on insurance market
Direct impact:
     Rationalisation and control:

      * Motor insurance contracts

     * Motor insurance costs

     * Accident claims costs
EU enlargement
Impact on insurance market
  Indirect impact:

  * Increased awareness to need
    insurance

  * Higher claims

  * Improved claims handling
The Polish insurance
market
The Bureau of Polish Motor Insurers

Green Card Bureau
                   pbuk@pbuk.pl
Information Centre
                   centrum@pbuk.pl
Compensation body
      compensation.body@pbuk.pl
Telephone: +48(22) 551-51-01
Fax: +48(22) 551-01-99
www.pbuk.pl
Thank you
  for your
     attention!