Insurers operating in the European Union in 2023 raised EUR 1,414 billion in premiums, representing approximately 21% of global gross written premium.1
Insurance companies play an important role in the national economy, acting as a stabilizer of business cycles. By collecting premiums and paying compensation during crisis periods, they contribute to mitigating the effects of economic fluctuations. In addition, they act as long-term investors, supporting the development of the economy through investments in infrastructure, government bonds and businesses, which promotes stability and economic growth.
In 2023, the insurance market in Poland and Europe faces a number of challenges. A key problem was persistently high inflation, which drove up the cost of repairs, medical services and other benefits, forcing insurers to raise premiums to maintain profitability.
In 2023, the insurance market in Poland and Europe faces a number of challenges. A key problem was persistently high inflation, which drove up the cost of repairs, medical services and other benefits, forcing insurers to raise premiums to maintain profitability. In addition, stagnant prices of motor liability policies with rising repair costs negatively affected the profitability of this segment in Poland. At the European level, the increasing frequency and intensity of natural disasters such as floods and forest fires have significantly increased compensation costs. Faced with these difficulties, insurers have had to adjust their strategies, taking into account both the needs of clients and the need to maintain financial stability, while focusing on sustainability, technological innovation and better risk management.2
At the end of 2023, Poland’s insurance sector assets accounted for 6.5% of GDP, well below the European average of 56.2%. Poland maintained its 15th place in the EEA in terms of the value of assets, which accounted for 0.5% of the European sector.3
The value of premiums in the European insurance sector in 2023 was EUR 1.41 trillion, of which EUR 677.6 billion came from life insurance and EUR 736.4 billion from non-life insurance. France and Germany have the largest insurance market in Europe (EUR 345.2 billion and EUR 343.5 billion in premiums written in 2023, respectively, accounting for 24.4% and 24.3% of the European market). Markets exceeding EUR 100 billion in gross written premiums still have Italy (EUR 135.4 billion), Ireland (EUR 101.8 billion), and above EUR 80 billion have the Netherlands (EUR 87.4 billion) and Spain (EUR 82.8 billion). The Polish insurance market was also inferior in size to those countries in Western Europe that have a significantly lower population than Poland, such as: Austria (EUR 21.9 billion), Norway (EUR 25.7 billion), Sweden (EUR 39.9 billion), Denmark (EUR 42.5 billion), Belgium (EUR 47.6 billion), Luxembourg (EUR 51.4 billion).4
The statistical inhabitant of Europe in 2023 spent about EUR 2,891 on insurance, in terms of conversion. A year earlier it was EUR 2 749, so there was an increase of more than 4%. In 2023, in terms of conversion, the average Pole spent EUR 489 on insurance, about 16% more than the year before and more than 6 times less than the statistical resident of Europe. Only a few countries in Central and Eastern Europe recorded lower values. The insurance expenses of Lithuanian and Latvian residents amounted to EUR 198 and EUR 383 respectively, while the statistical resident of Estonia spent EUR 800 on insurance. In 2023, the average Ukrainian spent only EUR 1.7 on insurance. By comparison, in major insurance markets such as Germany and France, residents spent EUR 4 117 and EUR 5 047 per person, respectively.5
In Poland, the market insurance model has been developing since 1990. At present, Poland has the largest insurance market in Central and Eastern Europe. Gross written premium for the Polish market in 2023 was EUR 17 894 million, corresponding to a premium share of about 1.3% (in 2022 it was EUR 15 444 million and a share of about 1.1%). For the Baltic Countries, the values were for Lithuania – EUR 572 million (0.04%), Latvia – EUR 718 million (0.05%), Estonia – EUR 1 099 million (0.08%), and for Ukraine6 – EUR 57 million (less than 0.01%)7.
Source: EIOPA, European Insurance Overview 2024; Eurostat,
*excluding Ukraine due to unstable economic situation caused by war
Source: EIOPA, European Insurance Overview 2024; Eurostat
Non-life insurance dominate the structure of the Polish market, generating two-and-a-half times more premiums than life insurance, accounting for 72% of premiums compared to 28% for life insurance, while in the EEA the ratio was 52% to 48%. Among non-life insurance, TPL accounted for 29.6% of premiums, MOD accounted for 22.8%, and non-motor insurance accounted for 47.6%. Active reinsurance accounted for 7% of premiums in Poland versus 27% in the EEA.8
The Baltic Countries show a similar structure of insurance markets to Poland, with non-life insurance dominating. The situation is different in Norway (65.0%), Denmark (74.2%), Italy (68.4%) and Sweden (65.9%), where life insurance has the advantage – these are also some of the largest insurance markets in Europe9.
Poland’s insurance penetration rate, which is the ratio of total gross written premium to gross domestic product (GDP), is below the European average. In 2023, this rate for Poland stood at 2.4%, whereas the EOG average was 5.2%10. Even lower penetration rates were achieved in the insurance markets of Lithuania (0.8%), Latvia (1.8%), and Estonia (2.9%). Ireland (20.0%), France (12.2%), and Denmark (11.3%) have the highest penetration rates.11
Analyzing the penetration of insurance in relation to GDP per capita, it can be expected that the Polish insurance sector will develop as Poland economy (GDP) grows, society becomes more affluent (with increasing disposable household incomes) and insurance awareness of the local population grows, which was exactly the path taken by West European countries.
Description of the insurance markets on which PZU Group companies operate
Non-life insurance market in Poland
Measured by gross written premium in the first three quarters of 2024, the non-life insurance market in Poland grew by a total of PLN 4.9 billion (+12.0%) in comparison to the corresponding period of the previous year.
Source: The Quarterly Bulletin of the Polish Financial Supervision Authority (www.knf.gov.pl). Rynek ubezpieczeń [Insurance market] 3/2024, Rynek ubezpieczeń 3/2023, Rynek ubezpieczeń 3/2022, Rynek ubezpieczeń 3/2021, Rynek ubezpieczeń 3/2020
Total written premium on direct business grew by PLN 4.4 billion (+11.6% y/y), and on indirect business – by PLN 0.5 billion (+16.0% y/y).
The market growth was attributable to the increase in gross written premium in non-motor insurance (by PLN 2.6 billion, +14.2% y/y), and motor insurance (by PLN 2.2 billion, +10.1% y/y).
In non-motor insurance, the biggest contributor to the growth of gross written premiums was insurance against fire and other damage to property (by PLN 1.6 billion, +17.1% y/y, of which PLN 0.3 billion related to indirect business). Sales increases were also seen in assistance insurance (up PLN 363 million, +22.0% y/y), general third-party liability insurance (up PLN 321 million, +11.4% y/y), and accident and illness insurance (up PLN 263 million, +11.3% y/y). A decrease in gross premiums written was recorded only in legal expenses insurance (by PLN 10 million, -17.3% y/y).
Motor insurance premium growth was driven by both MTPL (up PLN 1.2 billion, +9.9% y/y) and Auto Casco insurance (up PLN 1.0 billion, +10.4% y/y). MTPL insurance remains the largest insurance group, generating PLN 13.9 billion in premiums written after three quarters of 2024, accounting for 30.5% of the nonlife insurance market.
In the first three quarters of 2024, the overall non-life insurance market generated a net result of PLN 5,259 million, which is PLN 69 million less in comparison with the corresponding period of 2023 (down by 1.3%).
Source: KNF’s Quarterly Bulletin. Rynek ubezpieczeń [Insurance Market] 3/2024
In addition, there was a further decline in profitability in MTPL insurance (technical result down PLN 223 million y/y to -PLN 363 million). Significant decreases in technical result were also recognized in Auto Casco insurance (by PLN 78 million) and in the group of credit insurance and financial guarantees (by PLN 64 million). A significant improvement in profitability was recorded in general third-party liability insurance (an increase in technical result by PLN 213 million).
After three quarters of 2024, the PZU Group had a 32.4% share in the non-life insurance market, measured by the gross written premium (31.7% on direct business) compared with 32.1% in the corresponding period of 2023 (31.7% from direct business), meaning a decrease of 0.3 pp. (maintaining market share in direct business).
Non-life insurance – Gross written premium vs technical result (in PLN million)
| Gross written premium vs technical result | 1 January – 30 September 2023 | 1 January – 30 September 2024 | ||||
|---|---|---|---|---|---|---|
| PZU* | Market | Market excl. PZU | PZU* | Market | Market excl. PZU | |
| Gross written premium | 13,045 | 40,685 | 27,640 | 14,739 | 45,548 | 30,809 |
| Technical result | 1,040 | 2,107 | 1,067 | 576 | 1,294 | 718 |
Source: The Quarterly Bulletin of the Polish Financial Supervision Authority (www.knf.gov.pl). Rynek ubezpieczeń 3/2024, PZU figures
After three quarters of 2024, the PZU Group’s technical result (PZU together with LINK4 and TUW PZUW) stated as a percentage of the overall market’s technical result was 44.5% the PZU Group’s technical result was PLN 576 million while the overall market’s technical result was PLN 1 294 million).
The total value of the investments made by non-life insurers at the end of Q3 2024 (net of the investments made by subordinated entities) was PLN 88,133 million, up 7.3% compared to the end of 2023.
Non-life insurers estimated their net technical provisions at an aggregate amount of PLN 76,063 million, signifying a 6.1% growth compared to the end of 2023.
Life insurance market in Poland
After three quarters of 2024, the life insurance market in Poland, measured by gross written premium, was estimated at PLN 17,703 million, meaning that it has grown over the most recent five years, on average, by 2.2% per annum, whereas this is the result of the considerably dynamic growth of the last two years.
The premiums collected in three quarters of 2024 were by 4.0% higher than those in the corresponding period of 2023 as a result of an increase in periodic premiums while a decrease in premiums paid on a one-time basis. In products of both payment types, the premium for annuity insurance (class IV) and protection insurance has increased in accident and illness insurance (class V). After three quarters of 2024, the market recorded a decline in single-premium life insurance (class I) written premiums by PLN 488 million, i.e. 16.2% y/y, with a simultaneous increase in regular-payment premiums in this insurance group by PLN 441 million (+7.5% y/y).
After three quarters of 2024, after a period of significant slowdown in sales of investment-type products, there was an increase in premiums, including single-premium insurance (+PLN 214.6 million, +79.3%). The reasons for the earlier downward cycle can be traced to changes in the capital market situation and the legal and macroeconomic environment, including the recommendations of the Polish Financial Supervision Authority.
As a result of the market changes, periodic premium products that constitute PZU Życie’s competitive edge on the market became more important. During the three quarters of 2024, premium from these products was 6.1% higher compared to the same period in 2023, with a cumulative average growth rate of 4.2% for the last five years. Despite the declining periodic premium in unit-linked life insurance (by PLN 105.9 million y/y), the premium on protection products in classes I and V increased (by PLN 977.8 million y/y) in both group and individually purchased insurance.
At the same time, market concentration measured by the periodic gross written premium remained high. During the last year, the list of the five largest market players has not changed, and their combined market share was 80.4%.
Within the three quarters of 2024, life insurers generated a total net result of PLN 3 049 million, up by PLN 342 million, 12.6% y/y. This was, among others, the effect of the technical result being higher than in the corresponding period of 2023.
Source: KNF’s Quarterly Bulletin. Rynek ubezpieczeń [Insurance market] 3/2024, Rynek ubezpieczeń 3/2023, Rynek ubezpieczeń 3/2022, Rynek ubezpieczeń 3/2021, Rynek ubezpieczeń 3/2020
The technical result of life insurance companies in the three quarters of 2024 amounted to PLN 3 429 million, i.e., was PLN 229 million higher (+7.2% y/y) than in the corresponding period of 2023. The increase is mainly due to an increase in the technical result in class I life insurance (up by PLN 229 million), to a lesser extent the increase occurred in class V accident and sickness insurance (up by PLN 33 million) offset by a decrease in the technical result of unit-linked Insurance (down by PLN 32 million).
The total value of the investments made by life insurance companies at the end of Q3 2024 was PLN 45,645 million, signifying an 4.2% increase compared to the end of 2023. The net asset value of life insurance in which policyholders bear the investment risk decreased by 0.3% to PLN 40 203 million.
Within the PZU Group, PZU Życie and Polski Gaz TUW na Życie (in liquidation) operates on the Polish life insurance market.
In the first three quarters of 2024, the PZU Group accounted for 42.2% of the gross written premium of all life insurers on the market, signifying an increase versus the last year’s mar et share by 2.1 pp), mostly as a consequence of the growing share of PZU Życie in the single premium market (+16.9 pp).
At the same time, the PZU Group continued to be the leader in the periodic premium segment. In the first three quarters of 2024, it generated 41.8% of these types of premiums, signifying a small decrease (-0.5 p.p.) in the market share in this segment as compared to the previous year. The PZU Group’s written premium growth in this segment was 104.9% y/y.
Life insurance – Gross written premium vs technical result (in PLN million)
| Gross written premium vs technical result | 1 January – 30 September 2023 | 1 January – 30 September 2024 | ||||
|---|---|---|---|---|---|---|
| PZU Group* | Market | Market excl. PZU Group |
PZU Group* | Market | Market excl. PZU Group |
|
| Gross written premium | 6,819 | 17,022 | 10,203 | 7,463 | 17,703 | 10,240 |
| Technical result | 1,627 | 3,200 | 1,573 | 1,781 | 3,429 | 1,648 |
| Margin | 23.9% | 18.8% | 15.4% | 23.9% | 19.4% | 16.1% |
Source: The Quarterly Bulletin of the Polish Financial Supervision Authority (www.knf.gov.pl). Rynek ubezpieczeń 3/2024, PZU Życie figures
PZU Życie’s share in just the life insurance segment (class I) for periodic premiums at the end of Q3 2024 was 49.1% when measured by gross written premium, and 50.1% when measured by the number of contracts in force. The PZU Group’s mar et share in terms of the method of entering into a contract in the life insurance segment was 55.7% for contracts executed in group form and 32.5% for individual contracts (measured by gross written premium).
The PZU Group’s technical result represented close to 51.9% (+1.1 pp) of the result earned by all life insurance companies. This evidences the high profitability these products enjoy. PZU Życie’s technical result margin on gross written premium was higher than the overall margin generated by other companies offering life insurance (23.9% versus 16.1%).
Insurance markets in the Baltic Countries and Ukraine
The Bank of Lithuania has stated that in 2024 the gross written premium in non-life insurance amounted to EUR 1,213 million, up 22.2% in relation to 2023. Motor insurance remained the most significant insurance class on the market (52.4% of all gross premiums written in non-life insurance).
Market growth occurred mostly in MTPL insurance which constitutes almost one-third of the non-life insurance market (28.9%). Within motor insurance, gross written premium on MTPL insurance grew by 4.4% y/y, whereas sales of MOD – by 12.9% y/y. Significant growth was also observed in non-life and health insurance (10.5% y/y and 20.9% y/y, respectively). As at the end of 2024, there were eleven companies operating in the non-life insurance sector, including seven branches of insurance companies registered in other EU Member States. The combined market share of top 4 players in the non-life insurance market totaled 81.6%.
The PZU Group has been present in Lithuania since 2002. As of November 2014, it has been conducting its activity on the non-life insurance market as Lietuvos Draudimas, which, as of May 2015, is also the owner of the PZU branch in Estonia.
Lietuvos Draudimas is the leader of the non-life insurance market in Lithuania. Its 2024 market share was 30.1%. Lietuvos Draudimas posted an increase in gross written premium by 10.7% y/y to EUR 366 million. The biggest growth was achieved in non-life insurance (up by EUR 10 million), MTPL insurance (up EUR 9 million), and MOD insurance (up EUR 8 million).
Gross premiums written by Lithuanian life insurance companies in 2024 amounted to EUR 370 million, up 4.5% relative to 2023. Sales of insurance with regular premiums rose by 3.8% y/y, while those with single premiums increased by 21.0% y/y (i.e., by EUR 3.2 million).
In the life insurance structure, unit-linked insurance represented the largest share at 80.6% of the market value. Traditional life insurance accounted for 8.5% of written premium. New sales in the annualized premium decreased by 5.3%. The volume of new sales growth was positively affected by economic development, labor force growth and low inflation.
As at the end of 2024, seven companies operated on the Lithuanian life insurance market. The said market was highly concentrated – in 2024, the share held by the three largest life insurance companies in total gross written premium was 62.8%.
The largest life insurance company in Lithuania in terms of total gross written premiums was Compensa (22.8% market share), followed by Swedbank (20.7% market share) and Allianz (19.2% market share).
PZU Group’s life insurance operations in Lithuania are conducted through UAB PZU Lietuva Gyvybës Draudimas (PZU Lithuania Life). The gross written premium posted by PZU Lithuania Life was EUR 26 million, up 10.0% from 2023. This corresponds to a market share of 7.0%.
According to the figures from the Bank of Latvia, as at the end of 2024, gross premiums written from non-life and other personal insurance amounted to EUR 640 million. This is EUR 52 million (8.8%) more than in 2023.
The largest increase, by EUR 18 million (+15.0%), took place in health insurance. There was also a significant increase in non-life insurance (up EUR 17 million or 12.7%) and MOD insurance (up EUR 11 million or 8.1%).
The most significant group is MTPL insurance and MOD insurance, which accounted for 19.9% and 22.9% of gross premiums written of the non-life insurance market, respectively. Health insurance (21.4% of gross written premium) and non-life insurance (23.2% of gross written premium) also had an important position in the product mix.
As at the end of 2024, there were ten insurance companies operating on the Latvian non-life insurance market; the top four insurers held 75.1% of the market.
In June 2014, the PZU Group was joined in Latvia by AAS BALTA, which in May 2015 took over the PZU Lithuania branch operating in the Latvian market since 2012.
AAS BALTA is the largest insurer by written premium in Latvia. In 2024, the share of AAS Balta in the non-life insurance market was 28.7%.
In 2024, the gross premium written by AAS Balta reached EUR 184 million, up 8.6% (EUR 15 million) relative to 2023. Greatest growth was observed in motor insurance and health insurance.
In 2024, gross written premium in non-life insurance amounted to EUR 601 million, up 8.5% in relation to the corresponding period of 2023.
Market growth was supported mainly through MOD insurance (+EUR 11 million, or +6.1% y/y) and MTPL insurance (+EUR 6 million, or +5.6% y/y). Dynamic growth was also enjoyed in mass non-life insurance (up +EUR 10 million, i.e., +9.8% y/y) and other MTPL insurance (up +EUR 9 million, i.e., +48.5 y/y).
The sales structure of non-life and other personal insurance was dominated by motor insurance, which accounted for 53.8% of gross written premium (of which MOD insurance accounted for 31.5%), with property insurance accounting for 29.0% of gross written premium.
As at the end of December 2024, there were fourteen companies operating in the non-life insurance sector (including six branches of foreign insurance companies), among which the top four held a combined market share of 66.9%.
Since May 2015, the PZU Group’s operations in Estonia have been conducted by the Lietuvos Draudimas branch, established through the merger of a branch of PZU’s Lithuanian subsidiary and the Estonia branch, which had operated under the Codan brand.
The PZU Group’s share in the Estonian non-life insurance market reached 15.5% in 2024, and the accumulated gross written premium was EUR 93 million, up 10.6% (i.e., EUR 9 million) relative to 2023. Greatest growth was observed in other MTPL and MOD insurance, as well as non-life insurance.
The National Bank of Ukraine (NBU) has taken over the supervision of the insurance market in Ukraine as of the end of June 2021. NBU made supervision more efficient by monitoring compliance with applicable regulations and applying appropriate measures against the violators.
Past March 2022, NBU has regulated the activities of parties to non-banking financial services during martial law, and among other things extended the deadlines of enforcement. In relation to Russia’s aggression in Ukraine, NBU made more specific the manner in which certain normative and legal acts should be implemented to relieve market players of that burden, and also implemented a series of restrictions to minimize new risks arising due to the war. In mid-February 2023, the NBU eased restrictions for insurers on payments under foreign reinsurance contracts, expanding the ability to provide insurance benefits under reinsurance contracts with non-resident reinsurers.
After Q3 2024, the Ukrainian insurance market, measured by gross written premium, grew by 12.2% up to UAH 38 billion. The premium accumulated in non-life insurance was UAH 34 billion, signifying 11.1% growth compared to the same period in 2023.
In 2024, all motor insurance, especially MTPL insurance, had a significant impact on sales growth. Green Card insurance, while momentum was still positive, showed a significantly lower growth rate. The negative rate in some types of insurance was related to the ongoing hostilities on Ukrainian territory. The largest decline in Q3 2024, compared to the same period of 2023, was recorded in non-life insurance and other MTPL insurance.
The Ukrainian insurance market in the non-life and other personal insurance segments is fragmented. At the end of September 2024, sixty-four insurance companies were operating there. Despite the large number of insurers, the top ten non-life insurers generated 71.0% of gross written premium.
As at the end of September 2024, insurance companies offering life insurance collected gross written premium of UAH 4.1 billion, signifying 13.7% growth compared to the corresponding period in 2023. At the same time, market concentration remains very high and continues to grow. Eleven life insurance companies operated in Ukraine, with the five largest companies collecting 82.6% of gross written premiums.
On the Ukrainian market, the PZU Group operates the insurance business via two companies: PrJSC IC PZU Ukraine (PZU Ukraina) in non-life and other personal insurance, and PrJSC IC PZU Ukraine Life (PZU Ukraina Życie) in life insurance. In addition, LLC SOS Services Ukraine offers assistance services.
In 2024, gross written premium collected by PZU Ukraine amounted to UAH 2,248 million, or 20.3% more than in the previous year. The increase in sales was recorded primarily in motor insurance, in particular MTPL insurance. In 2024, gross written premium collected by PZU Ukraine Life was UAH 395 million, down 1.6% from 2023.
During the first three quarters of 2024, PZU Ukraine attracted 4.8% of the gross written premium on the Ukrainian non-life insurance sector, and its market share went up by 0.5 pp versus Q3 2023. This ranked the company tenth on the non-life insurance market. PZU Ukraine Life ranked fifth in the life insurance market with an 6.9% market share (down 0.3 pp relative to the previous year).
1. Sigma No 3/2024 World insurance: strengthening global resilience with a new lease of life; EIOPA, European Insurance Overview 2024
2. https://www.parkiet.com/finanse/art39694211-ubezpieczyciele-pod-presja-inflacji-i-klimatu?utm; EIOPA, Financial Stability Report December 2023
3. National Bank of Poland, Rozwój systemu finansowego w Polsce w 2023 r.
4. EIOPA, European Insurance Overview 2024
5. EIOPA, European Insurance Overview 2024; Eurostat
6. for Ukraine were used internal sources due to the lack of availability of public data 15)
7. EIOPA, European Insurance Overview 2024
8. NBP, Development of the financial system in Poland in 2023; EIOPA, European Insurance Overview 2024
9. EIOPA, European Insurance Overview 2024
10. excluding Luxembourg,Liechtenstein and Malta exceeding 40%, where a significant portion of contributions were generated by cross-border activities, and excluding Ukraine, which has an unstable economic system due to the war
11. EIOPA, European Insurance Overview 2024; Eurostat