Polish Insurance Market Research Articles

The Impact of the Bankruptcy of the Insurer Operating in the EU under Freedom of Establishment Rules on the Performance of the Insurance Guarantee Fund in the Compulsory Motor Third-Party Liability Insurance System

Cross-border activities of European companies, including insurance undertakings, constitute the major component of EU legal system. The freedom of establishment and the freedom to provide services rules are the crucial foundations of the single internal market, as they enable EU entrepreneurs to take up and pursue economic activity in the territory of another Member State. Unfortunately, the EU market has its weaknesses, one of which has been recently experienced by the Polish insurance market. This is due to the lack of a uniform guarantee system which would coherently deal with the issues related to the European insurer’s insolvency and, above all, to the settlement of claims of entitled persons and to the payment or refund of benefits, which has particular consequences for entitled persons holding motor third-party liability insurance, being the most popular insurance product.Given the above, the performance of the Polish Insurance Guarantee Fund is of the utmost importance. The legislator has failed to precisely regulate several issues related to the organisational aspects of the institution’s activities of in the event of bankruptcy or compulsory liquidation of an insurance company operating in Poland on a cross-border basis. Therefore, some demands for amendments to the Compulsory Insurance Act have been presented. The most urgent demand, however, is about providing for unambiguous method for determining which Member State’s guarantee scheme should satisfy the claims of entitled persons, i.e. whether it should be the scheme of the insolvent or bankrupt insurer’s home Member State or rather the scheme of the Member State where it conducted its cross-border operations. Besides, the determination of the mode of reimbursement by the guarantee scheme of the insolvent or bankrupt insurer’s country of origin will increase the level of responsibility of supervisory institutions of that country for the operation of entities subject to their supervision and conducting cross-border business.

Mediation in the Polish Insurance Market

The article describes mediation as one alternative dispute resolution method (ADR) available on the Polish insurance market. The author positions mediation among other ADRs on the market and describes the major features and advantages of mediation over traditional court proceedings. According to the author, mediation is very rarely used on the Polish insurance market. The vast majority of insurance mediation is conducted by the Mediation Centre of the Arbitration Court at the Polish Financial Supervision Authority. The author discusses the reasons for this including the relative newness of mediation as an ADR in Poland and a general lack of knowledge of it, the lack of system of comprehensive regulations for the profession of mediator, insurers’ attitude of “deny to the end” with regard to settling claims, and the mentalities the customs of their lawyers.

Protection of the consumer rights on the Polish insurance market

Motivation: The insurance market in Poland has undergone intensive changes resulting from the development of the market economy model. Poland’s membership in the EU imposes adaptation of the domestic legal order to legislation introduced at the level of the European Community. Consequent on this insurance companies function in the constantly changing legal and economic conditions. Apart from the strive to become more competitive, to increase the demand for the insurance services, insurers must care for the correct relationships with their clients and respect their rights resulting from the signed contract.Aim: The objective of the article is to analyse the factors determining changes in the protection of consumer rights on the Polish insurance market. For a long time, this issue was a secondary subject of regulatory standards, practices and business initiatives introduced in Poland. Along with the progressive modification of the supervisory system and the introduction of new global solutions, the issue of protection of consumer rights has become particularly important.Results: The conducted research indicates that the emergence of new threats and challenges faced by the insurance sector significantly affected the scope of protection, range of insurance products, their distribution channels and way in which the consumer rights are respected. The development of cross-sectoral cooperation, the creation of international capital groups, the spread of the bancassurance phenomenon, have tightened the system of supervision over the financial market. It has become necessary to implement new law regulations that will ensure the availability and high quality of insurance services and the safety of using them.

Ubezpieczenie jako metoda zarządzania ryzykiem w procesie realizacji inwestycji budowlanej

Przedmiot badań: Przedmiotem badań jest ryzyko występujące podczas prowadzenia inwestycji budowlanej oraz rola ubezpieczeń jako sposobu ograniczenia się przed skutkami jego realizacji.
 Cel badawczy: Głównymi celami artykułu są: ocena ubezpieczenia jako metody zarządzania ryzykiem przez polskie przedsiębiorstwa, identyfikacja kluczowych ryzyk zagrażających realizacji inwestycji na każdym etapie procesu budowlanego oraz przedstawienie najważniejszych produktów oferowanych przez ubezpieczycieli dla inwestorów i podmiotów z branży budowlanej oraz weryfikacja ich zakresu pod kątem pokrycia ryzyk związanych z przedsięwzięciem budowlanym.
 Metoda badawcza: Artykuł powstał na bazie studiów literaturowych, analizy danych statystycznych i dostępnych wyników badań ankietowych, analizy i porównania treści Ogólnych Warunków Ubezpieczenia odnoszących się do produktów dostępnych na polskim rynku ubezpieczeniowym, wzorców umownych udostępnianych przez Zleceniodawców w ramach postępowań przetargowych dotyczących realizacji inwestycji budowlanych, a także w oparciu o własne wieloletnie doświadczenia zawodowe jako osoby pełniącej czynności brokera ubezpieczeniowego, obserwację rynku ubezpieczeniowego oraz zachowań klientów.
 Wnioski: W trakcie realizacji badań potwierdzono, że coraz więcej przedsiębiorców jest świadomych rosnącego ryzyka prowadzenia działalności gospodarczej, wdraża politykę zarządzania ryzykiem w swoich firmach, której istotnym elementem jest ubezpieczenie. Udowodniono też, że realizacja inwestycji budowlanej jest procesem złożonym, obarczonym na każdym etapie wysokim ryzykiem jej niepowodzenia o zróżnicowanym charakterze i wymaga od inwestora podjęcia wielu działań mających na celu właściwe zabezpieczenie się na wypadek wystąpienia szkody. Ubezpieczenie stanowi ważny element strategii zarządzania ryzykiem inwestycji budowlanej, szczególnie na etapie projektowania i realizacji prac. W związku z problemami, z jakimi boryka się aktualnie sektor budowlany, należy pamiętać o waloryzacji wartości kontraktów budowlanych i zwiększaniu sum ubezpieczenia, gdyż przy szybko rosnących cenach materiałów budowlanych i robocizny w tym sektorze wiele budów może być obecnie niedoubezpieczonych, co w przypadku szkody będzie skutkować ograniczeniem wypłaty odszkodowania.

INSURANCE COMPANIES AS PRODUCERS OF INVESTMENT FINANCIAL SERVICES

Introduction. Insurance companies are among the largest investors in countries with developed insurance markets. At the same time, it is legitimate to consider them as institutional investors. In today's conditions, foreign insurance companies demonstrate the intensification of life insurance, which, in turn, determines the need to improve existing insurance products and/or introduce non-traditional products, which include investment life insurance. The latter are a popular instrument in the market of insurance and investment services, primarily due to the combination of such features as insurance protection and profitability. The successful operation of life-insurers in a constantly dynamic and competitive environment is associated with their ability to quickly respond to the challenges of the external and internal environments, and not only to adapt to them, but also to use new circumstances for increasing the competitiveness and capitalization of the company, as well as preserving and expansion of own client base. The purpose of the article is to study the specifics of the activity of insurers as institutional investors, on the one hand, and their ability to produce investment financial services, in particular investment life-insurance services, to identify the attributes of the latter, differences from classical life insurance and outline the prospects for the development of investment-oriented life insurance on the domestic insurance market. Results. It is identified the features of the functioning of insurance companies as institutional investors. The definition of “investment potential of an insurance company” was defined and deepened. The specifics of investing insurance reserve funds and investment opportunities for non-life and life insurers are argued. Modern trends in the development of the life insurance market and, accordingly, the latest formats in the management of assets of life insurers have been revealed. The specifics of investment life insurance are clarified and its attributes are formulated. The differences between classic mixed life insurance and investment life insurance are systematized according to the following criteria: motivation for concluding the contract; placement of insurance premium; the principle of calculating insurance premiums; obligations of the insurer; the amount of the redemption amount; the possibility of receiving additional payments; the dynamics of increasing the premium reserve. Trends in the development of investment life insurance in Europe and on the Polish insurance market have been analyzed. Conclusions. Modernity requires the implementation of the latest approaches to the activities of insurance companies, in particular in the area of production of investment financial services, namely investment life insurance. Classical standards in life insurance are gradually being abandoned, which contributes to the dynamic development of insurance worldwide, which provides for the payment of insurance coverage depending on the dynamics of stock values. The need to develop investment life insurance on the domestic insurance market – a financial instrument that embodies both insurance protection and an accumulation opportunity with the help of investments – has been proven.

Non-financial reporting as a determinant of financial efficiency of insurance companies

The growing ecological, social and environmental awareness of the society leads to the situation where the necessary determinants of success of a company are no longer good financial results only, but also image-related aspects, which affect the way of corporate reporting. Non-financial reporting is a response to the needs of stakeholders of insurance companies for new information on environmental and social issues which are related to the implementation of the idea of corporate social responsibility (CSR). It is treated as one of the dependent variables that affect financial efficiency measured with the rate of return on equity (ROE). The aim of the study presented in this paper is to assess the impact of non-financial reporting on the financial efficiency of insurance companies on the Polish insurance market. A representative group of 43 insurance companies operating on the Polish market in the years 2004–2019 was examined in the framework of the research. The statistical data came from the database of the Polish Chamber of Insurance (Pol. Polska Izba Ubezpieczeń – PIU). The assumption that non-financial reporting has a statistically significant effect on ROE was adopted as the research hypothesis, and it was verified by a panel model constructed for this purpose. The study confirmed the research hypothesis, which will contribute to the development of a theory which assumes that CSR activity affects financial results of companies.

In search of opportunities for development of microinsurance by drawing on the experience of previous generations

Motivation: Notwithstanding the 30 years of the market economy, the Polish insurance market still reveals an exceptionally low level of penetration rates and insurance density. Attempts should be made to reduce the protection gap by introducing and popularising microinsurance products.
 Aim: The research aims to establish whether there exists a need for microinsurance products in Poland and whether there are conditions for its development, which groups it should target and what methods and institutions can reduce the protection gap.
 Results: Data analysis demonstrated that in Poland the lowest use of insurance coverage to manage risk occurs in the lowest income households, comprising groups of people with relatively low education: disability pensioners, farmers and workers. This results in lack of or limited access to insurance. Looking for a way to counteract this phenomenon, I suggest introducing and popularising microinsurance products targeting towards the above-mentioned groups. However, the use of remote microinsurance distribution channels may prove highly ineffective. Considering the above and the lack of trust in entities operating in the insurance market, it is recommended to create a legal environment enabling the inclusion of institutions and organisations acceptable to and enjoying the trust of these circles in processes involving marketing, distribution and, partially, the servicing of microinsurance. These players should consist of civic organisations, such as volunteer fire brigades, rural housewives’ clubs, activist organisations from religious communities, as well as those set up for mutual protection, e.g., relief and loan funds and savings and loan funds. A separate group targeted by microinsurance should consist of people who are young, open to new trends and interested in obtaining insurance coverage for a limited time, e.g., for the short period when they use a means of personal transport or other rented equipment, for which coverage can be obtained and paid for quickly and without undue formalities.

Legal Regulation of Bodies of the Mutual Insurance Society

Mutual insurance societies constitute a small part of the Polish insurance market, dominated by insurers operating in the form of joint-stock companies. However, recent years have seen a kind of renaissance of mutual insurance, including the establishment of mutual insurance companies for specific industries. At the same time, the legal framework for this form of insurance activity remains incomplete and does not keep up with the changing market environment. It applies, in particular, to the regulations of the bodies of mutual societies, which do not comply with the dynamic modifications introduced in commercial law in recent years. The author of the article discusses the basic issues related to the design and operation of the bodies of a mutual society, reviews the historical changes to those regulations, analyzes the application of joint-stock company regulations to bodies of mutual societies and finally formulates de lege ferenda conclusions.

Impact of the Polish Financial Supervision Authority’s (UKNF) Communication of 23 January 2020 Concerning Cloud Computing on the Polish Insurance Market

The purpose of this article is to present the impact of guidelines contained in the UKNF’s Communication on Information Processing by Supervised Entities Using Public or Hybrid Cloud Computing Services in the context of insurance and reinsurance activities, including insurance mediation. The authors focus on selected issues, which in their opinion are particularly important from the point of view of insurance market operators

Environmental Liability Directive call for development of financial instruments: the issue of compulsory insurance

Motivation: Compulsory insurance is one of the possible optional responses to the Environmental Liability Directive (ELD) call for development of financial instruments. The article is a contribution to the analysis of the development of financial instruments relating to environmental liability. The above has been continuously discussed in both local and European circles. Aim: There are two research purposes of this article. Firstly, to identify the attributes of the EU countries which have implemented a system of obligatory environmental insurance. Secondly, to recognise and assess the premises for introduction of a system of obligatory environmental insurance by the example of Poland. Results: Insurance obligation has been legitimised in relatively poorly developed countries of the European Union. Economic indicators (GDP, GDP per capita) in majority of the above are usually below the EU average. Also, the attributes of insurance markets (non-life insurance gross premium written, non-life insurance density and insurance penetration rates) in these countries are the evidence of a large discrepancy between them and the highly developed markets. Overall economic indicators for Poland and the attributes of the Polish insurance market put this country (in economic terms) in the group of states which have decided to introduce obligatory environmental insurance. Simultaneously, the doctrine and practitioners alike consistently criticise ‘inflation of obligatoriness’ which has been seen in the Polish regulations for decades and indicate disadvantages of such solution. Possible introduction of environmental insurance obligation, if considered in Poland, should be preceded by action taken in order to strengthen the supply side of the market. Only in this condition will it be possible for obligatory insurance — if flexible enough in its structure — to strengthen the incentives for market development on the demand side.

Działalność kompensacyjna Ubezpieczeniowego Funduszu Gwarancyjnego w Polsce w latach 2012–2016

Ubezpieczeniowy Fundusz Gwarancyjny pełni unikatową rolę na polskim rynku ubezpieczeniowym. Jako jedyna instytucja w sposób kompleksowy chroni ubezpieczonych i poszkodowanych. W artykule omówiono misje i sposób działania UFG. Przedstawiono analizę realizacji funkcji kompensacyjnej w latach 2012–2016 i dokonano jej interpretacji. Wykazano, że zapotrzebowanie na usługi świadczone przez UFG rośnie.

Znaczenie ubezpieczeń posagowych w gromadzeniu oszczędności gospodarstw domowych

The article deals with life insurance of a dowry type treated by households as an alternative form of savings. The article points out and discusses motives and economic determinants of households’ propensity to save. The theories and theoretical models underlying the collection of financial resources by households have been taken into account, highlighting the importance of life insurance as a form of financial protection for the future of children, through the possibility of their supply in the form of a dowry policy. The essence and types of dowry products have also been discussed, taking into account the different types and structures of products. The condition and trends of changes in the Polish insurance market, including insurers, size and dynamics of gross premiums, have been presented, indicating the role of insurance for the supply of children in shaping the savings structure of households in Poland.

Raportowanie informacji niefinansowych w zakładach ubezpieczeń w Polsce

Raportowanie informacji niefinansowych w zakładach ubezpieczeń w Polsce This paper aims to show causes of non-financial reporting and to present conclusions from an evaluation of the extent and principles of this area of reporting with regard to the prevailing practice of companies in the Polish insurance market. The paper reviews literature of the subject and applicable regulations and uses the methods of deduction and induction, analysis of the contents of non-financial reports and the author's own observations. The initial part is a review of relevant literature concerning causes of nonfinancial reporting. The second section describes the unique nature of insurance companies as public trust organisations and its effects on management systems of insurers and qualitative characteristics of nonfinancial reports. Non-financial reports have been examined that were drafted in 2001–2015 by insurance companies operating in Poland as of 31 December 2015. Reports submitted to the GRI as reports from Poland and reports of parent entities have been studied. Image considerations have been found to be the fundamental cause of non-financial reporting. 48.2% of insurance companies produced reports although it was not mandatory at the time. No results of research using a similar sample have been found in academic literature.

Struggle for the Polish Insurance Market in the Initial Years of Poland’s Regained Independence

Struggle for the Polish Insurance Market in the Initial Years of Poland’s Regained Independence

The comparison of selected legal aspects of insurance products on the Polish and British markets

Author of this thesis has undertaken the research about Polish and English legal system and regulations that are essential for insurance market. This topic is not very popular in literature, because it is hard to find the comparison of Polish and English regulations that establish the conditions on which third party liability vehicle insurance contracts are concluded. That issue is very important to determine the level of development of the Polish insurance market. Before 1989 insurance market in Poland was monopolized by two companies. So it could be said that it is rather young, and may be less developed than English. The aim of that thesis has been achieved. The studies show that there are several significant differences in Polish and English legal system, but regulations do not follow changes of the insurance market in both countries. At the beginning of the thesis the author presented history of risk management and insurances. Next moved to analysis of legal regulations that are essential for compulsory vehicle insurance in Poland and England.

THE ROLE OF BUSINESS INSURANCE IN NATIONAL ECONOMY IN POLAND

The main aim of the study is to show the role of business insurance in the Polish national economy. The fi rst part presents an overview of the insurance market. In the second part the importance of insurance in the national economy is discussed, based on calculated penetration rates, insurance density, activity monitoring, coverage ratio and solvency ratio. Finally the density and penetration rates in Poland were compared with those in other EU countries. The primary research method was descriptive method and the basic indicators of the importance of insurance in the national economy. The main source materials were data from the Central Statistical Offi ce, the Polish Financial Supervision Authority and the Polish Insurance Association. This study covers the period 2006–2014. The study confi rmed a good standing of the Polish insurance market and the fact that it systematically reduces the distance that separates the Polish insurance market from the largest European markets.

ANALIZA RYNKU UBEZPIECZENIOWEGO W POLSCE POD KĄTEM APLIKACJI MOBILNYCH

The article treats about the topic of mobile application development within the Polish insurance market and fields still available for development in this area. The author of the article strives to analyze the mobile applications provided by the Polish insurance market in terms of the offered functionality and the readiness of potential users for the implemented solutions. On top of that, the following article presents the positive and the negative aspects, associated with the provided mobile applications by the insurance sector. Moreover, it shows the challenges which the Polish insurance market faces in this area.

Rozwój obowiązkowych ubezpieczeń odpowiedzialności cywilnej w służbie zdrowia

Ubezpieczenia odpowiedzialności cywilnej są ubezpieczeniami, które charakteryzują się jednymi z najszybciej zachodzących zmian na rynku ubezpieczeniowym. Ich rozwój związany jest przede wszystkim z szybkim postępem technologicznym, który miał miejsce w XIX i XX w.W Polsce natomiast pierwsze ich formy wystąpiły dopiero w 1998 r. Od tego czasu przeszły one wiele zmian, które wpłynęły na wprowadzenie obowiązku ich posiadania niemal przez wszystkie placówki działalności leczniczej.

Does customer analysis affect firm performance? Quantitative evidence from the Polish insurance market

Despite many conceptual and empirical studies, the relationship between marketing information systems and financial performance remains ambiguous. In this paper, we propose and test a model explaining how customer analysis can affect financial performance. The data for the study were collected from 590 insurance intermediaries in Poland. The results indicate that the strongest predictor of financial performance is the degree of formalized knowledge processing, followed by the scope of performed customer analysis. Other factors that positively correlated with financial outcomes include earning most revenues from corporate clients (versus consumers) and employing policies aimed at regaining former customers. The study also found that add-on selling is not significantly associated with better financial results.

The Usefulness of Readability Formulas in the Insurance Industry

The aim of this paper is to characterize the most important methods which are used to determine the level of text readability. The author presents practical examples of the usage of chosen methods by foreign insurance companies. The final section of the study is completed with general conclusions relating to the application of the given solutions to the Polish insurance market.