Say it: Jakub Braziewicz, CUK Ubezpieczenia.
It is still expensive, but the prices of civil liability are not rising so fast. From the beginning of 2017 until the end of July, the average cost of the policy increased by 2.7%. The corresponding period in the previous year was characterised by an increase of as much as 30.7%, according to an analysis by CUK Ubezpieczenia. Although the increases have not yet ceased, their gradual slowdown may herald positive changes on the motor insurance market.
- It is not yet possible to talk about complete stabilization of the situation on the market, but after the first half of the year one can say with all responsibility that 2017 turns out to be much more gracious for the drivers - says Maciej Kuczwalski, an expert from CUK Ubezpieczenia.
The gradual return to price equilibrium is the result of the insurers' slow achievement of profitability levels. So far, the amounts of civil liability insurance compensation have significantly exceeded the insurers' income from premiums. So they had to add to the benefits paid out of their own pocket. At the moment, thanks to the price increases, there is a chance that the desired amounts can be accumulated in the reserves and, as a result, the price increases can be completely stopped. - "Insurers' financial losses are decreasing - which can be seen in the positive technical result at the end of the first quarter of this year, as well as in the stabilizing prices of civil liability". - continues the expert.
Although on a market-wide scale we have been observing lower and lower increases in the prices of civil liability, the inhabitants of some provinces still have no reason to be happy. Just like at the beginning of the year, the Dolnośląskie Voivodeship was at the top of the ranking of the highest prices of civil liability. Drivers there have to pay for the policy on average PLN 935 - which is 29% more than the average price on a national scale. Although it is the most expensive voivodeship, since the beginning of the year the increases have not exceeded 2%. The second place - with the price of 826 PLN for an average policy - is occupied by the Pomeranian Province, where premiums increased by almost 6%. The third most expensive province is Lubuskie, where an average of 783 PLN had to be paid for civil liability. Despite its infamous position in the ranking, the price situation there is changing for the better - since the beginning of the year there has been a slight price drop - at 1.5%.
The rates also decreased in the Lublin Province - drivers from that region paid 3.2% less than at the end of last year. On the other hand, price increases below the national average (2.7%) were recorded in the following voivodships: Zachodniopomorskie (0.8%), Kujawsko-Pomorskie (1.3%), Mazowieckie (1.8%) Dolnośląskie (2%) and Śląskie (2.1%).
On the other hand, drivers from the Opolskie Voivodeship, where prices have risen above 11% since the beginning of the year, had to face a much more drastic jump in prices. This price increase is many times higher than the average of the whole country and its neighbouring regions. - "Despite the recorded increases, the situation in the Opole Province is not as bad as it might seem. It is enough to remember the fluctuations in policy prices in the Opole region at the turn of December 2016 and January 2017. They fell then by as much as 19.6%. It is difficult to say why this particular voivodeship is characterised by such high variability - it is rather not a result of its geographical location, as we have observed a similar situation in Podlasie. There the increase after the first seven months of 2017 also exceeded 11%. Just like in the Opole region, we recorded a significant price drop at the turn of the year (6.5%) in Podlasie. The statistics clearly show that despite the price fluctuations observed in individual provinces, the national trend remains unchanged. Individual price spikes, or temporary reductions in a given month, are quickly corrected by the market. - says Maciej Kuczwalski.
The following voivodeships are also above the national average in terms of price increase: Podkarpacie (6.6%), Pomorskie (5.9%), Świętokrzyskie (5.3%), Łódzkie (4.85%), Małopolskie (4.38%), Wielkopolskie (3.85%), Warmińsko-Mazurskie (3.13%). Despite the growths recorded during the year, the top three cheapest voivodeships remain unchanged. In July, the least amount of civil liability was paid for by the inhabitants of Podkarpackie, Świętokrzyskie and Lubelskie.
- We are already halfway through 2017, so we can say with great conviction that there will be no more drastic increases as in 2016. Of course, this is a thesis that can only be confirmed in a scenario that does not foresee legal and political changes that could overburden insurers. At the moment, the greatest challenge is being prepared by the European regulation on personal data protection and the bill on insurance distribution - says Maciej Kuczwalski. The regulation will force all companies, including those in the insurance industry, to make organizational changes, conduct audits and adapt their IT systems. Similar challenges are being prepared by the bill on insurance distribution, which was adopted by the government in late July.
- The implementation of new regulations may significantly affect the Polish market. The changes that the regulations will force the insurers to make will be time-consuming and costly. On the other hand, the industry is slowly getting stronger financially. This gives hope that the challenges posed by the legislator will not contribute to further losses, and thus to raising the prices of policies - adds the expert.
