Insurance Market In Poland 2015-2017, CEE Insurance Series
Poland's economy sustained solid growth in 2014 despite external headwinds. The annual GDP growth rate accelerated to 3.4% YoY from 1.7% a year earlier. Increasing consumer demand, new corporate investments and balanced foreign trade positively affected economic growth. The rebounding economy resulted in unemployment rate decreasing to 11.7% in March 2015 from 13.5% a year earlier. The consumer price index (CPI) fell into negative territory in mid-2014 and reached a record -1.5% YoY level in March 2015. Falling consumer prices boosted real income of consumers and improved confidence indicators, which increased to the highest levels in multiple years.
Despite favourable economic developments, the insurance sector has remained in stagnation during 2014 with life premium sinking by 8% YoY and non-life premium falling by a fraction. The recent downtrend in life insurance premium could be attributed to the withdrawal of single premium deposit-like products, which became less attractive due to lower interest rates and changing regulatory environment. Other types of saving/investment products, especially unit-linked insurance were unaffected and continued to grow in 2014, which reflected relatively stable financial condition of households and high propensity to save for retirement. Within the non-life business, car insurance suffered from falling premiums (-3% YoY) due to fierce competition among insurers while property, corporate and other insurance segments sustained growth.