38.4 Technical provisions in non-life insurance

Reference Areas:
Health
Investments
Banking
Best Pratices in PZU

Provisions (by accounting classes prescribed by section II of the attachment to the Insurance Activity Act)31 December 201731 December 2016
 grossreinsurers’ sharenetgrossreinsurers’ sharenet
Accident and sickness insurance (group 1 and 2)392(10)382386-386
Motor third party liability insurance (group 10)13,544(361)13,18312,551(306)12,245
Other motor insurance (group 3)2,769(21)2,7482,446(41)2,405
Marine, aviation and transport insurance (groups 4, 5, 6, 7)88(20)6894(20)74
Insurance against fire and other property damage (groups 8 and 9)2,221(547)1,6741,810(271)1,539
TPL insurance (groups 11, 12, 13)2,157(106)2,0512,150(92)2,058
Credit and suretyship (groups 14, 15)196(77)119183(72)111
Assistance (group 18)280(1)279239(4)235
Legal protection (group 17)10-107-7
Other (group 16)343(107)236522(184)338
Total technical provisions22,000(1,250)20,75020,388(990)19,398
  Technical provisions in non-life insurance31 December 201731 December 2016
 grossreinsurers’ sharenetgrossreinsurers’ sharenet
Short-term5,162(312)4,8504,972(265)4,707
Long-term16,838(938)15,90015,416(725)14,691
Total technical provisions22,000(1,250)20,75020,388(990)19,398

Long-term provisions are those under which projected cash flows will occur more than 12 months after the end of the reporting period, or after 31 December 2017.

Movement in provisions

Movement in the provision for unearned premiums in non-life insurance1 January – 31 December 20171 January – 31 December 2016
 grossreinsurers’ sharenetgrossreinsurers’ sharenet
Beginning of the period6,957(377)6,5805,643(339)5,304
Increase (reduction) of provisions relating to policies concluded in the current year7,334(429)6,9056,552(194)6,358
Increase (reduction) of provisions relating to policies concluded in previous years(6,366)336(6,030)(5,255)156(5,099)
Foreign exchange differences in the period(48)4(44)17-17
Total technical provisions7,877(466)7,4116,957(377)6,580
  Movement in provision for unexpired risk1 January – 31 December 20171 January – 31 December 2016
 grossreinsurers’ sharenetgrossreinsurers’ sharenet
Beginning of the period26-26119-119
Increase (reduction) of provisions relating to policies concluded in the current year33(3)3023-23
Increase (reduction) of provisions relating to policies concluded in previous years(21)-(21)(116)-(116)
Foreign exchange differences in the period(1)-(1)---
End of the period37(3)3426-26
Movement in the provision for outstanding claims and benefits in non-life insurance1 January – 31 December 20171 January – 31 December 2016
 grossreinsurers’ sharenetgrossreinsurers’ sharenet
Balance at the beginning of the period, including:7,730(421)7,3097,706(580)7,126
Benefits paid related to losses incurred in previous years, including:(2,713)177(2,536)(2,502)247(2,255)
- claims paid(2,308)170(2,138)(2,133)241(1,892)
- claims handling expenses(405)7(398)(369)6(363)
Increase (reduction) of provisions, including:3,305(348)2,9572,539(87)2,452
- relating to losses incurred in the current year3,212(223)2,9892,751(66)2,685
- relating to losses incurred in previous years93(125)(32)(212)(21)(233)
Other changes6410(24)(1)(25)
Foreign exchange differences in the period(27)3(24)11-11
End of the period8,301(585)7,7167,730(421)7,309
 
Movement in the provision for the capitalized value of annuities in non-life insurance1 January – 31 December 20171 January – 31 December 2016
 grossreinsurers’ sharenetgrossreinsurers’ sharenet
Beginning of the period5,673(192)5,4815,808(178)5,630
Claims paid related to losses incurred in previous years(355)11(344)(325)9(316)
Increase (reduction) of provisions relating to losses incurred in previous years212(4)20813(22)(9)
Changes in assumptions resulting from movements in technical rates(16)1(15)(15)-(15)
Increase in provisions relating to losses incurred in the current year203(4)199168-168
Other changes59(2)5724(1)23
End of the period5,776(190)5,5865,673(192)5,481
 

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