Market Guide: Life Insurance and Pensions in Poland 2006

This report is most appropriate for companies looking for an overview of the life insurance and pensions markets in order to assess the level of market opportunity (using our market data and forecasts), regulatory barriers and opportunities, and level of competition in the market. For more detailed market data please refer to Datamonitor's European Life and Pensions Interactive Database 2006.


Report Highlights

The increase in premiums during 2005 was attributed to the improved financial position of Polish households as well as development of the bancassurance channel. Growth in the unit-linked sector, in particular, was encouraged by high returns on insurance investment funds, driven by the continued solid performance of the stock market since 2003. The Individual Pension Account Act of 2004 introduced individual pension accounts (IPAs), through which individuals can accumulate additional pension savings. IPAs may be offered by banks, brokerage houses and offices, investment funds and insurers. As at the end of 2004, however, deposits to these accounts were far below predicted volumes. Between 2001 and 2005, the proportional distribution of premium income between group and individual policies remained largely consistent, while the distribution between premium income from unit-linked and non-unit-linked policies reflected an increase in the former between 2004 and 2005.
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Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Following compound annual growth of 13.2% in the last five years, between 2006 and 2010, growth in the Polish life and pensions market is set to accelerate to 18.8% 2
The Polish life and pensions market expanded by a compound annual rate of 13.2% between 2001 and 2005 2
Accelerated growth in both life insurance and pensions is projected over the next five years 2
The market will continue to be shaped by EU legislation 2
Joint stock companies dominate the Polish market by number 2
The market leaders rely on distribution through bank networks and other intermediaries 2
Table of figures 5
Table of tables 6
MARKET OVERVIEW 7
The Polish life and pensions market expanded by a compound annual rate of 13.2% between 2001 and 2005 7
The Polish life and pensions market experienced compound annual growth of 13.2% between 2001 and 2005 7
Between 2001 and 2005, income from group and individual policies was almost evenly split 9
The proportion of total premium income from unit-linked policies increased in 2005 10
MARKET FORECASTS 12
Accelerated growth in both life insurance and pensions is projected over the next five years 12
Over the next 5 years, premium income is set to grow at a compound annual rate of 18.8%, compared to 13.2% growth between 2001 and 2005 12
MARKET REGULATION 14
The market will continue to be shaped by EU legislation 14
The Insurance and Pension Funds Supervisory Commission regulates the life insurance and pensions sector 14
Insurance companies which belong to financial conglomerates face additional supervisory requirements 15
Recent legislation shapes the pensions market 15
The Insurance Mediation Act introduces new requirements for insurance intermediaries 15
Upcoming laws will enhance consumer protection 16
Providers may be required to fund a new insurance guarantee 16
COMPETITIVE MARKET STRUCTURE 17
Joint stock companies dominate the Polish market by number 17
The Polish life insurance market is dominated by joint stock companies 17
The top 5 life insurers control just under three-quarters of the market by gross premium income 18
More than half of life insurance premiums were distributed through direct sales in 2005 19
MARKET LEADERS 21
The market leaders rely on distribution through bank networks and other intermediaries 21
PZU ?ycie S.A. is the life insurance market leader, based on premium income in 2005 21
Commercial Union Polska - TUn? S.A. trails the market leader in the life insurance sector 21
PAPTUn?iR Amplico-Life S.A. ranks third among life insurance companies 21
AEGON TU na ?ycie S.A. is the fourth highest ranked life insurer by premium income 22
TUn? ING Nationale-Nederlanden Polska S.A. rounds out the top 5 life insurers 22
APPENDIX 23
Definitions 23
Capital redemption policy / bond 23
Composite insurer 23
Defined contribution pension scheme 23
Defined benefits pension scheme 23
Group policy 23
Individual pension scheme 23
Individual policy 23
Life assurance 23
Occupational pension scheme 24
Pension insurance policy 24
Premium income 24
Regular premium 24
Single premium 24
Technical provisions 24
Traditional insurance 24
Unit-linked insurance 24
Further reading 24
Interactive Databases 24
Reports and Briefs 25
Ask the analyst 26
Datamonitor consulting 26
Disclaimer 26
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Table 1: Life and pensions insurance premium income, segmented by product, EURm, 2001-2005 8
Table 2: Life and pensions insurance premium income, segmented by product, in percentages, 2001-2005 8
Table 3: Life and pensions insurance premium income, segmented by buyer, EURm, 2001-2005 9
Table 4: Life and pensions insurance premium income, segmented by buyer, in percentages, 2001-2005 10
Table 5: Life and pensions insurance premium income, segmented by investment risk, EURm, 2001-2005 11
Table 6: Life and pensions insurance premium income, segmented by investment risk, in percentages, 2001-2005 11
Table 7: Life and pensions insurance premium income, segmented by product, EURm, 2006-2010 13
Table 8: Life and pensions insurance premium income, segmented by product, in percentages, 2006-2010 13
Table 9: Number of life insurance providers segmented by type, as at Dec 2005 18
Table 10: Top 5 life insurers by gross premium income, as at Dec 2005 19
Table 11: Life insurance gross premium income, segmented by distribution channel, in percentages, Jan-Dec 2005 20


Figure 1: Life premiums accounted for 99% of total premium income in 2005 7
Figure 2: Income from individual policies grew at a slightly higher compound annual rate of 13.6% from 2001 to 2005 9
Figure 3: Between 2001 and 2005, the market for unit-linked insurance experienced compound annual growth of 17.1% 10
Figure 4: Life insurance and pensions income will increase at similar rates, and pensions will continue to represent less than 1% of the market 12
Figure 5: Joint stock companies represent 94% of the Polish life and pensions market by number 17
Figure 6: PZU ?ycie S.A. leads the Polish life and pensions sector 18
Figure 7: Insurance agents and brokers together generated 33% of life insurance gross premium income 19
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