The insurance market in Poland after Q3 2025 remains one of the key segments of the domestic financial system. The scale of indemnities and benefits paid, the number of contracts concluded, as well as the financial performance of insurers show that despite regulatory challenges, cost pressures and changes in sales channels, the industry remains stable and capable of further growth.
The total value of indemnities and benefits paid out after Q3 2025 approached 40 billion PLN, illustrating both the scale of insurance cover provided to individual customers and businesses and the rising cost of risk faced by insurance companies.
🩺 Life insurance – market structure and changes in sales channels
At the end of Q3 2025, there were 25.4 million life insurance contracts in Poland. Of this number, more than 14.2 million people were covered in the form of group insurance. This segment of the market is developing exceptionally dynamically – year on year, the number of insured in the form of group insurance increased by 21%, which clearly confirms the growing popularity of this solution among both employers and employees.
The growing interest in group insurance is also reflected in the financial results. This segment recorded an increase of more than 5% in gross premiums written, which shows that the growing number of policyholders translates into real growth in the value of the market.
Total gross premiums written in Division I (life insurance) amounted to 18.3 billion PLN after Q3 2025, up 3.6% year-on-year. However, this growth can be described as moderate. Its limited scale is due, among other things, to a decrease of more than 700 PLN in gross premiums written in the bancassurance channel.
The bancassurance channel, which historically played a very important role in the sale of life insurance products, is clearly losing significance. This decline translated into a 4.5 percentage point year-on-year decrease in the share of the BA channel in Division I. The reason for this situation is the changes resulting from the implementation of Recommendation U, which significantly altered the way in which bank-linked insurance products are offered and distributed.
The market’s reaction to these regulations is comparable to previous periods of significant legal changes, such as the earlier introduction of Recommendation U or product interventions. In each of these cases, a temporary reduction in sales in specific channels was observed before the market adapted to the new regulatory conditions.
🚘 Division II – dominance of motor insurance
The largest part of the Division II market, i.e. non-life and other personal insurance, is invariably motor insurance. After Q3 2025, this segment accounted for a significant proportion of claims paid.
In Q3 2025:
➡️ compensation and benefits from compulsory motor third-party liability amounted to 9.4 billion PLN, an increase of 6.7% year-on-year.
➡️ indemnities from autocasco (AC) reached 6.8 billion PLN, which translates into an increase of 7.6% in relation to the same period of the previous year.
The increase in the value of claims paid is clear, but it is also accompanied by a stable increase in insurance premiums. The average motor third-party liability insurance premium amounted to 553 PLN, an increase of 3.8% compared to the same period of the previous year.
At the same time, the cost of individual damages is growing much faster. The average motor third-party liability damage increased by 14.0% and amounted to just over 12,000 PLN at the end of Q3 2025. This discrepancy between the rate of premium growth and the increase in the value of claims is one of the key challenges to the profitability of motor insurance.
The lower increases in average premiums for Motor Third Party Liability and Auto Casco contracts are mainly due to strong price pressure in the market. Competition between insurers results in limited opportunities to fully pass on rising claims costs to customers.
🏡 Non-life insurance – increase in payouts and the impact of events
After Q3 2025, claims payouts related to property insurance amounted to 4.7 billion PLN, an increase of 11.7% year-on-year. Such a significant increase was influenced, among other things, by payouts related to agricultural insurance, particularly in the spring period, when there were events causing significant losses in this segment.
The development of property insurance, including the protection of large corporate assets, remains strongly dependent on the investment cycle in the economy. The higher the investment activity of companies, the higher the demand for insurance protection for infrastructure, machinery, real estate and other assets.
Assuming that macroeconomic forecasts for Poland remain optimistic, the property insurance segment should be expected to grow in the medium term, increasing both the scale of protection and the value of gross premiums written.
💸 Financial performance and importance for the economy
In the first nine months of 2025, insurance companies paid over 1.7 billion PLN in income tax to the state budget, while generating over 10.5 billion PLN in net profit. These results
show that the insurance industry remains a significant tax payer and an important element in the stability of public finances.
Year-on-year:
➡️ net profit in Division I increased by 4.8%,
➡️ net profit in Division II increased by as much as 40%.
Such a significant increase in profitability in Division II confirms that, despite cost pressures, insurers are able to manage risks and product portfolios effectively.
Profitability as a foundation for market stability
The profitability of the insurance industry is crucial not only for the insurance companies themselves, but also for the economy as a whole. A strong capital position and high solvency ratios are a guarantee that insurers will be able to meet their obligations to customers even in periods of increased claims or adverse events.
In summary, the figures after Q3 2025 show the insurance market as a stable, diversified and resilient sector, which at the same time faces challenges from rising claims costs, pricing pressures and changing distribution channels. At the same time, the growth prospects – especially in the area of non-life and group life insurance – remain promising in the medium term.