The insurance market in Poland is one of the most important pillars of financial stability for the state and households. The latest figures from the Polish Insurance Association (PIA) for 2025 shed light on the condition of the sector. What emerges from the report is a picture of an industry that, on the one hand, pays out record sums to those in need and, on the other, faces extremely strong competition and rising claims handling costs.
Billions to support victims 🤝🏻
The most telling figure of the past year is the amount of 53.8 billion PLN. This is the total amount which reached the hands of the insured in the form of compensation and benefits. Compared to the previous year, we are talking about an increase of 7 per cent. This dynamic shows that insurance is becoming a real safety net and Poles are using their protection more and more frequently and effectively.
However, it is worth noting that the increase in payouts goes hand in hand with an increase in gross written premiums. Both major market divisions saw solid gains here:
➡️ Life insurance: up 5.2%
➡️ Non-life insurance: up 6.0%
Section I – growth in ‘group’ and changing habits
The life insurance sector is currently experiencing a very interesting moment. At the end of 2025, the number of active contracts has reached an impressive 25.5 million. What catches analysts’ attention is the dominant role of group insurance.
The group insurance phenomenon
Today, group insurance already protects 14.3 million people, accounting for more than half of the total life market. What is more, in 2025 alone, the number of people covered by this form of protection increased by as much as 21 per cent. This is a signal that insurance offered, among other things, in workplaces is becoming the standard that employees expect.
Stability and new products
Gross written premium in Division I amounted to 24.8 billion PLN, the best result in two years. PIA experts highlight two key aspects:
1️⃣ Predictability – More and more people are choosing to pay regular premiums instead of one-off payments. This strengthens the long-term stability of the whole sector.
2️⃣ New perspectives – A major opportunity for further growth is the implementation of Personal Investment Accounts, which will find their way into the offerings of insurance companies.
Section II – challenges in motor insurance
Motor insurance is traditionally the largest part of the non-life market, but also the area of greatest struggle for profitability. The year 2025 has brought a very clear divergence between costs and revenues here.
Rising claims costs 📈
The payout figures are merciless:
➡️ 12.8 billion PLN was paid out under compulsory motor third-party liability (an increase of 6.9%).
➡️ In the case of AC, compensation amounted to 9.3 billion PLN (an increase of 8.2%).
The key indicator here is the average MTPL claim, which at the end of 2025 amounted to 12 161 PLN, an increase of 11% per year. In comparison, the average premium for a third-party liability policy increased by only 2.7%, reaching 553 PLN.
Profitability at the margin of error 🚨
The strong price pressure means that insurers cannot raise rates significantly, even though the cost of repairs and parts is rising at a double-digit rate. As a result, profitability in the motor third-party liability line is only 0.5%. Although the technical result remains positive, the margin for error for insurance companies has become extremely narrow.
Property and agriculture – at the rhythm of the economy and nature
In the segment of other non-life insurance (especially in groups 8 and 9), payouts amounted to 6.2 billion PLN. Although growth in this category was moderate (0.9% year-on-year), the result was significantly influenced by agricultural insurance payouts following the weather events of spring 2025.
Further growth in non-life insurance, especially for large business and corporations, will be closely linked to the domestic investment cycle. With optimistic macroeconomic forecasts for Poland, further growth of this branch can be expected in the coming years.
Financial health of the sector and the role of the state 🩺
Summing up the financial performance, the insurance industry has reason to be satisfied, although the market environment is becoming more difficult. Since 2025, NBP interest rates have been steadily falling, which directly affects the placement activities of the companies.
Nevertheless, the year closed with solid profits:
➡️ Life insurers’ net profit increased by 6.7%.
➡️ Net profit in the non-life sector increased by 35.4%.
The total net profit of the sector exceeded 12.5 billion PLN and insurers contributed more than 2.2 billion PLN to the state budget through income tax.
The high solvency ratios and strong capital position of insurers are a guarantee that the Polish insurance sector is safe and ready to cover liabilities to millions of customers, regardless of market turbulence.