Insurance companies play an important role in the national economy, acting as a stabilizer of business cycles. By collecting premiums and paying compensation during crisis periods, they contribute to mitigating the effects of economic fluctuations. In addition, they act as long-term investors, supporting the development of the economy through investments in infrastructure, government bonds and businesses, which promotes stability and economic growth.
The value of premiums in the European insurance sector in 2024 was EUR 1.57 trillion, of which EUR 770.5 billion came from life insurance and EUR 797.7 billion from non-life insurance. France and Germany have the largest insurance market in Europe (EUR 398.5 billion and EUR 373.6 billion in premiums written in 2024, respectively, accounting for 25.4% and 23.8% of the European market). Markets exceeding EUR 100 billion in gross written premiums still have Italy (EUR 158.6 billion), Ireland (EUR 109.2 billion), and above EUR 80 billion have the Netherlands (EUR 94.4 billion) and Spain (EUR 82.1 billion). The Polish insurance market was also inferior in size to those countries in Western Europe that have a significantly lower population than Poland, such as: Austria (EUR 23.2 billion), Norway (EUR 25.9 billion), Denmark (EUR 45.8 billion), Sweden (EUR 46.9 billion), Belgium (EUR 50.6 billion), Luxembourg (EUR 60.6 billion)1.
The statistical inhabitant of Europe in 2024 spent about EUR 2,883 on insurance, in terms of conversion. A year earlier it was EUR 2 671, so there was an increase of nearly 8%.2.
In 2024, in terms of conversion, the average Pole spent EUR 542 on insurance, about 11% more than the year before and more than 5 times less than the statistical resident of Europe. Only a few countries in Central and Eastern Europe recorded lower values. The insurance expenses of Lithuanian and Latvian residents amounted to EUR 383 and EUR 416 respectively, while the statistical resident of Estonia spent EUR 866 on insurance. By comparison, in major insurance markets such as France and Germany, residents spent EUR 5 820 and EUR 4 477 per person, respectively3.
In Poland, the market insurance model has been developing since 1990. At present, Poland has the largest insurance market in Central and Eastern Europe.Gross written premium for the Polish market in 2024 was EUR 19 844 million, corresponding to a share of approximately 1.3% of the European market (in 2022, it was EUR 17 894 million, with the share also at 1.3%). For the Baltic Countries, the figures were: for Latvia – EUR 781 million (0.05%), Lithuania – EUR 1,106 million (0.07%), Estonia – EUR 1,191 million (0.08%)4.
Non-life insurance dominate the structure of the Polish market, generating two-and-a-half times more premiums than life insurance, accounting for 74% of premiums compared to 26% for life insurance, while in the EEA the ratio was 51% to 49%. Among non-life insurance, TPL accounted for 29.4% of premiums, MOD accounted for 22.5%, and non-motor insurance accounted for 48.1%5.
Source: EIOPA, European Insurance Overview 2025; Eurostat
*excluding Ukraine due to economic instability caused by the war
** the size of the circle reflects the country’s share of the insurance market in Europe – the larger the gross written premium, the larger the circle
Source: EIOPA, European Insurance Overview 2025; Eurostat
The Baltic Countries show a similar structure of insurance markets to Poland, with non-life insurance dominating. The situation is different in Denmark (74.8%), Italy (70.7%), Sweden (69.6%) and Norway(63.3%), where life insurance has the advantage – these are also some of the largest insurance markets in Europe6.
Poland’s insurance penetration rate, which is the ratio of total gross written premium to gross domestic product (GDP), is below the European average. In 2024, this rate for Poland stood at 2.3%, whereas the EOG average was 5.4%.15 Even lower penetration rates were achieved in the insurance markets of Latvia (1.9%), Hungary (1.8%), Slovakia (1.6%), Lithuania (1.4%) and Romania (1.1%). Ireland (19.4%), France (13.6%), and Denmark (11.7%) have the highest penetration rates7.
Analyzing the penetration of insurance in relation to GDP per capita, it can be expected that the Polish insurance sector will develop as Poland economy (GDP) grows, society becomes more affluent (with increasing disposable household incomes) and insurance awareness of the local population grows, which was exactly the path taken by West European countries.
Insurance distribution in Poland was mainly based on a network of insurance agents, who collected 67.5% of the premium. In 2024, their number reached 28,365, while the number of people performing agency activities dropped significantly – by more than 100 thousand y/y. The bancassurance channel played a smaller role, with its share declining from 6.9% to 6.4%, especially in the sale of individual life insurance. Insurance brokers, on the other hand, have maintained their importance, dominating primarily in the group life and non-life insurance segments8.
In 2024, Poland’s insurance sector generated a record net profit of more than PLN 10 billion. A key source of improvement was life insurance, which made a 3.9 billion zloty profit thanks to a higher technical result and favorable changes in reserves. The profitability of this segment was primarily supported by health and accident insurance, alongside stable results from unitlinked products.
In non-life insurance, profit remained at a level similar to the previous year (PLN 6.2 billion), but the technical result deteriorated markedly as a result of high damage costs – especially the 2024 floods – and losses in MTPL insurance. The largest profit contribution to this segment came from MOD insurance, while accident insurance remained the most profitable9.
In 2024, domestic insurance companies maintained solvency at a high and stable level – all of them had own funds in excess of both the solvency capital requirement (SCR) and the minimum capital requirement (MCR). The SCR coverage ratio was 266% in life insurance and 216% in non-life insurance, reflecting a substantial capital surplus. All of the life insurance companies were above 150%, and only four non-life insurance companies were below that. Most of the entities used the standard formula for capital calculations, and only two property establishments used the internal model (one in full, the other for the actuarial risk part)10.
Description of the insurance markets on which PZU Group companies operate
Non-life insurance market in Poland
Measured by gross written premium in the first three quarters of 2025, the non-life insurance market in Poland grew by a total of PLN 2.1 billion (+4.6%) in comparison to the corresponding period of the previous year.
Total written premium on direct business grew by PLN 2.4 billion (+5.7% y/y), and on indirect business – decreased by PLN 0.3 billion (-9.6% y/y).
Source: The Quarterly Bulletin of the Polish Financial Supervision Authority (www.knf.gov.pl). Rynek ubezpieczeń [Insurance market] 3/2025, Rynek ubezpieczeń 3/2024, Rynek ubezpieczeń 3/2023, Rynek ubezpieczeń 3/2022, Rynek ubezpieczeń 3/2021
The market growth was attributable to the increase in gross written premium in motor insurance (by PLN 1.4 billion, +5.7% y/y), and non-motor insurance (by PLN 0.7 billion, +3.3% y/y).
Motor insurance premium growth was driven by both MTPL (up PLN 880 million, +6.3% y/y) and Auto Casco insurance (up PLN 506 million, +4.9% y/y). MTPL insurance remains the largest insurance group. After three quarters of 2025, it generated PLN 14.8 billion in premiums written, accounting for 31.0% of the non-life insurance market.
In non-motor insurance, the biggest contributor to the growth of gross written premiums was general thirdparty liability insurance (by PLN 325 billion, +10.4% y/y, of which PLN 269 billion related to indirect business). Sales increases were also seen in insurance of the provision of assistance (up PLN 316 million, +15.7% y/y), and fire and other property damage insurance (up PLN 94 million, +0.9% y/y).
The largest decline in gross written premiums was recorded in accident and health insurance (PLN 35 million, -1.4% y/y).
*PZU Group’s market share in non-life insurance on direct business Groups: Grupa PZU – PZU, LINK4, TUW PZUW; Talanx – Warta, Europa; VIG – Compensa, InterRisk, Wiener, TUW TUW; Allianz – Allianz, Euler Hermes, Santander Allianz TU S.A.;
Source: KNF’s Quarterly Bulletin. Rynek ubezpieczeń [Insurance Market] 3/2025
In the first three quarters of 2025, the overall non-life insurance market generated a net result of PLN 7,354 million, which is PLN 2,095 million more in comparison with the corresponding period of 2024 (up by 39.8%).
The technical result of the non-life insurance market after three quarters of 2025 grew by 120.2% y/y to PLN 2,849 million (up PLN 1,555 million). The largest impact on the increase in the technical result came from natural catastrophe insurance and insurance against other damage to property (up 745 million y/y), mainly as a result of lower claims and benefits (-PLN 58 million), including claims related to the effects of flooding in southern Poland in 2024.
In addition, there was an increase in profitability in MTPL insurance (technical result up PLN 496 million y/y to PLN 133 million).
Significant increases in technical result were also recognized in Auto Casco insurance (by PLN 191 million) and in the group of assistance insurance (by PLN 177 million). A significant deterioration in profitability was recorded in the other insurance group, with a decline in the technical result of PLN 122 million.
After three quarters of 2025, the PZU Group had a 30.1% share in the non-life insurance market, measured by the gross written premium (30.2% on direct business) compared with 32.3% in the corresponding period of 2024 (31.7% from direct business), meaning a decrease of 2.2 pp. (1.5 pp from direct business).
Non-life insurance – Gross written premium vs technical result (in PLN million)
| Gross written premium vs technical result | 1 January – 30 September 2024 | 1 January – 30 September 2025 | ||||
|---|---|---|---|---|---|---|
| PZU* | Market | Market excl. PZU | PZU* | Market | Market excl. PZU | |
| Written premium | 14,739 | 45,548 | 30,809 | 14,343 | 47,632 | 33,289 |
| Technical result | 576 | 1,294 | 718 | 1,318 | 2,849 | 1,531 |
Source: The Quarterly Bulletin of the Polish Financial Supervision Authority (www.knf.gov.pl). Rynek ubezpieczeń 3/2025, and Rynek ubezpieczeń 3/2024, PZU figures
After the first three quarters of 2025, the PZU Group’s technical result (PZU together with LINK4 and TUW PZUW) stated as a percentage of the overall market’s technical result was 46.3% (the PZU Group’s technical result was PLN 1,318 million while the overall market’s technical result was PLN 2,849 million).
The total value of the investments made by non-life insurers at the end of Q3 2025 (net of the investments made by subordinated entities) was PLN 95,879 million, up 8.8% compared to the corresponding period of 2024.
Non-life insurers estimated their net technical provisions at an aggregate amount of PLN 80,529 million, signifying a 5.9% growth compared to Q3 2024.
Life insurance market in Poland
After three quarters of 2025, the life insurance market in Poland, measured by gross written premium, was estimated at PLN 18,321 million, meaning that it has grown over the most recent five years, on average, by 2.6% per annum, whereas this is the result of the considerably dynamic growth of the last three years.
The premiums collected in three quarters of 2025 were by 3.5% higher compared to the corresponding period of 2024 as a result of an increase in periodic premiums while a decrease in premiums paid on a one-time basis. In products of both payment types, the premium for life insurance (Group I) and protection insurance has increased in accident and illness insurance (Group V). After three quarters of 2025, the market recorded negative premium written from accident and sickness insurance with single premiums (Group V) at -PLN 117 million (down PLN 486 million y/y; impact of the free credit sanction and the change in payment type from single to regular premiums) with a simultaneous increase in premiums with regular payments in this group of insurance of +PLN 654 million (+10.3% y/y).
After three quarters of 2025, after a period of significant slowdown in sales of investment-type products, there was an increase in premiums, including single-premium insurance in class III (+PLN 245 million, +50.4%). The reasons for the earlier downward cycle can be traced to changes in the capital market situation and the legal and macroeconomic environment, including the recommendations of the Polish Financial Supervision Authority.
As a result of the market changes, periodic premium products that constitute PZU Życie’s competitive edge on the market became more important. During the three quarters of 2025, premium from these products was 6.5 % higher compared to the same period in 2024, with a cumulative average growth rate of 5.1% for the last five years. Despite the declining periodic premium in Group III unit-linked life insurance (down PLN 227 million y/y), the premium on protection products in Groups I and V increased (by PLN 1,226 million y/y) in both group and individually purchased insurance.
Source: KNF’s Quarterly Bulletin. Rynek ubezpieczeń (3/2025, 3/2024, 3/2023, 3/2022, 3/2021)
At the same time, market concentration measured by the periodic gross written premium remained high. During the last year, the list of the five largest market players has not changed, and their combined market share was 80.6%.
Within the three quarters of 2025, life insurers generated a total net result of PLN 3,198 million, up by PLN 149 million, 4.9% y/y. This was, among others, the effect of the technical result being higher than in the corresponding period of 2024.
The technical result of life insurance companies in the three quarters of 2025 amounted to PLN 3,675 million, i.e., was PLN 245 million higher (+7.2% y/y) than in the corresponding period of 2024. The increase is mainly due to an increase in the technical result in Group V accident and sickness insurance (up PLN 104 million) and in Group III life insurance linked to insurance capital fund (up PLN 82 million). The technical result declined only in the annuity insurance group (by PLN 3 million).
Life insurance – Gross written premium vs technical result (in PLN million)
| Gross written premium vs technical result | 1 January – 30 September 2024 | 1 January – 30 September 2025 | ||||
|---|---|---|---|---|---|---|
| PZU Group | Market | Market excl. PZU Życie | PZU Group | Market excl. PZU Życie | Rynek bez PZU | |
| Written premium | 7,444 | 17,703 | 10,240 | 8,050 | 18,321 | 10,272 |
| Technical result | 1,783 | 3,429 | 1,646 | 1,836 | 3,675 | 1,838 |
| Profitability | 24.0% | 19.4% | 16.1% | 22.8% | 20.1% | 17.9% |
Business groups: Talanx – Warta, Europa; Allianz Group – Santander Allianz TU na ŻYCIE, TU Allianz Życie Polska;
Source: KNF’s Quarterly Bulletin. Rynek ubezpieczeń [Insurance Market] 3/2025
The total value of the investments made by life insurance companies at the end of Q3 2025 was PLN 46,884 million, signifying an 4.7% increase compared to the end of 2024. The net asset value of life insurance in which policyholders bear the investment risk increased by 5.7% to PLN 41,170 million.
Within the PZU Group, PZU Życie operates on the Polish life insurance market.
In the first three quarters of 2025, the PZU Group accounted for 43.9% of the gross written premium of all life insurers on the market, signifying an increase versus the last year’s market share (by 1.8 pp), mostly as a consequence of the growing share of PZU Życie in the single premium market (+23.8 pp).
At the same time, the PZU Group continued to be the leader in the periodic premium segment. In the first three quarters of 2025, it generated 41.0% of these types of premiums, signifying a small decrease (-0.8 p.p.) in the market share in this segment as compared to the previous year. The PZU Group’s written premium growth in this segment was 104.7% y/y.
PZU Życie’s share in just the life insurance segment (Group I) for periodic premiums at the end of Q3 2025 was 46.1% when measured by gross written premium, and 47.3% when measured by the number of contracts in force.
The PZU Group’s market share in terms of the method of entering into a contract in the life insurance segment was 54.4% for contracts executed in group form and 36.2% for individual contracts (measured by gross written premium).
The PZU Group’s technical result represented close to 50.0% (-2.0 p.p. y/y) of the result earned by all life insurance companies. This evidences the high profitability these products enjoy. PZU Życie’s technical result margin on gross written premium was higher than the overall margin generated by other companies offering life insurance (22.8% versus 17.9%).
Insurance markets in the Baltic Countries and Ukraine
According to the Bank of Lithuania, gross premiums written in the non-life insurance market totaled EUR 1,207 million after November 2025, up 8.6% y/y.
Motor insurance remained the most significant insurance class on the market – 52.2% of all gross premiums written in non-life insurance. Within MTPL and MOD insurance, written premiums increased y/y by 6.8%. Increases were also recorded in property insurance (EUR 29 million, +12.7% y/y) and health insurance (EUR 13 million, +10.2% y/y).
As at the end of November 2025, there were eleven entities operating in the non-life insurance sector, including seven branches of insurance companies registered in other EU Member States. The combined market share of top four players in the non-life insurance market totaled 81.0%.
The PZU Group has been present on the Lithuanian market since 2002. Since November 2014, non-life insurance operations have been conducted under the Lietuvos Draudimas brand, which has also managed PZU’s branch in Estonia since May 2015. Lietuvos Draudimas is the leader of the non-life insurance market in Lithuania. At the end of November 2025, its market share was 30.4%.
As at the end of 2025, Lietuvos Draudimas recorded an increase in gross written premium by 10.8% y/y to EUR 405 million. The biggest growth was achieved in property insurance (up by EUR 14 million), MTPL insurance (up EUR 13 million), and MOD insurance (up EUR 6 million).
Gross premiums written collected by Lithuanian life insurance companies until November 2025 amounted to EUR 352 million, up 6.2% relative to the corresponding period of last year. Sales of insurance with regular premiums rose by 5.8% y/y (i.e., by EUR 18 million), while those with single premiums increased by 15.7% y/y (i.e., by EUR 2.0 million).
In the life insurance structure, unit-linked insurance represented the largest share at 80.6% of the market value. Traditional life insurance accounted for 7.2% of written premium. New sales in the annualized premium decreased by 4.5%. The volume of new sales growth was positively affected by economic development and labor force growth.
As at the end of November 2025, seven companies operated on the Lithuanian life insurance market. The said market was highly concentrated – the share held by the three largest life insurance companies in total gross written premium was 62.5%.
As at the end of November 2025, the largest life insurance company in Lithuania in terms of total gross written premiums was Compensa (22.2% market share), followed by Swedbank (21.0% market share) and Allianz (19.3% market share).
PZU Group’s life insurance operations in Lithuania are conducted through UAB PZU Lietuva Gyvybës Draudimas (PZU Lithuania Life).
The gross written premium posted by PZU Lithuania Life as at the end of 2025 was EUR 28 million, up 9.2% from 2024. The company’s share of the Lithuanian life insurance market stood at 7.2% after November 2025.
According to data from the Bank of Latvia, at the end of Q3 2025, gross written premiums from non-life insurance amounted to EUR 512 million, which was EUR 24 million (+4.9%) more than after three quarters of 2024. Including health and accident insurance premiums collected by life insurance companies, the value of the insurance market stood at EUR 556 million, registering a y/y increase of 5.1% (+EUR 27 million).
The largest increases were recorded in health insurance (+EUR 15 million, +9.5% y/y) and property insurance (+EUR 11 million, +11.1% y/y). An increase of EUR 3 million (or +3.0%) was recorded in the area of MOD insurance. At the same time, a decrease of EUR 6 million (i.e., -6.4%) in MTPL insurance was registered as a result of the reduction in rates.
The most significant insurance groups are MTPL and MOD insurance, accounting for 16.2% and 20.7% of gross written premiums, respectively. Health insurance (30.0% of gross written premium) and property insurance (20.5% of gross written premium) also have an important position in the product mix.
As at the end of September 2025, there were eleven insurance companies operating on the Latvian non-life insurance market; the top four insurers held 68.4% of the market.
In June 2014, the PZU Group was joined in Latvia by BALTA, which in May 2015 took over the PZU Lithuania branch operating in the Latvian market since 2012.
BALTA is the largest insurer by written premium in Latvia. At the end of Q3 2025, BALTA’s share of the nonlife insurance market was 29.7% (27.3% including premiums collected by life insurance companies).
In 2025, the gross premium written by Balta reached EUR 198 million, up 7.7% (EUR 14 million) relative to 2024. Greatest growth was observed in health insurance and property insurance.
In 2025, gross written premium in non-life insurance amounted to EUR 589 million, down 2.0% in relation to the corresponding period of 2024.
The decrease in the market was reported in MOD insurance (-EUR 15 million, or -8.1%) and MTPL insurance (-EUR 14 million, or -10.4%). Its cause was the introduction of a new tax on purchased vehicles, which led to a significant decline in new car sales as well as a reduction in insurance premiums. The negative trend in the motor segment was partially offset by growth in property insurance (+EUR 11 million, +6.8% y/y) and health insurance (+EUR 1 million, +10.6% y/y).
In the sales structure of non-life insurance, motor insurance dominated, accounting for 49.9% of gross written premiums (including MOD at 29.6%). property insurance’s share of gross premiums written stood at 28.4% and health insurance reached 2.5%.
As at the end of 2025, there were 13 companies operating in the non-life insurance sector (including 6 branches of foreign insurance companies), among which the top four held a combined market share of 64.7%.
Since May 2015, the PZU Group’s operations in Estonia have been conducted by the Lietuvos Draudimas branch, established through the merger of a branch of PZU’s Lithuanian subsidiary and the Estonia branch, which had operated under the Codan brand.
The share in the Estonian non-life insurance market in this period was 14.6% after December 2025.
Gross written premiums collected at the end of 2025 amounted to EUR 86 million, down 8.1% from 2024. The biggest reductions were in MTPL and MOD insurance.
At the end of June 2021, supervision of the insurance market in Ukraine was taken over by the National Bank of Ukraine (NBU), which increased the effectiveness of controls by monitoring the implementation of existing regulations and applying appropriate measures against violators.
As of March 2022, the NBU has regulated the operation of non-bank financial service providers under martial law, including by extending the deadlines for enforcement actions. In the wake of Russia’s aggression against Ukraine, the NBU has clarified the application of selected legal acts to ease the burden on market participants, while introducing a number of restrictions to reduce new risks arising from the war.
After the third quarter of 2025, the Ukrainian insurance market, as measured by gross written premiums, recorded a 37.5% y/y increase to 52.7 billion hryvnias.
The premium accumulated in non-life insurance was UAH 48.4 billion, signifying 41.3% growth y/y. The highest growth rate was generated in the area of motor insurance, which occurred as a result of the entry into force of the new Act on Third Party Liability of Motor Vehicle Owners, introducing, among other things, the possibility of free pricing and expanding the list of vehicles covered by mandatory insurance.
After the full-scale war began, some insurers introduced products to protect against war risks, targeting both individuals and businesses. The new solutions include protection of life and health, vehicles and property. The increase in demand for property insurance, driven by the need to protect homes, buildings and factories from the effects of shelling, has become an important factor shaping the market.
There has been a steady decline in the number of insurance companies as a result of the NBU’s regulatory actions. At the end of Q3 2025, there were fifty companies operating in the non-life insurance market, meaning that fourteen entities had ceased operations in the past twelve months.
As at the end of September 2025, insurance companies offering life insurance collected gross written premium of UAH 4.3 billion, signifying 5.5% growth compared to the corresponding period in 2024. Market concentration remains high; ten life insurance companies operated in Ukraine, with the five largest companies collecting 88.9% of gross written premiums.
On the Ukrainian market, the PZU Group operates the insurance business via two companies: PrJSC IC PZU Ukraine (PZU Ukraina) in non-life and other personal insurance, and PrJSC IC PZU Ukraine Life (PZU Ukraina Życie) in life insurance. In addition, LLC SOS Services Ukraine offers assistance services.
1 EIOPA, European Insurance Overview 2025
2 the analysis excludes Liechtenstein and Luxembourg due to significant deviations in their values from the other countries, and Ukraine, whose data is unreliable due to the ongoing armed conflict
3 EIOPA, European Insurance Overview 2025; Eurostat
4 EIOPA, European Insurance Overview 2025
5 EIOPA, European Insurance Overview 2025
6 EIOPA, European Insurance Overview 2025
7 excluding Luxembourg, Liechtenstein and Malta exceeding 40%, where a significant portion of contributions were generated by cross border activities, and excluding Ukraine, which has an unstable economic system due to the war
8 National Bank of Poland, Development of the Financial System in Poland in 2024
9 National Bank of Poland, Development of the Financial System in Poland in 2024
10 National Bank of Poland, Development of the Financial System in Poland in 2024
