Claims and technical provisions

In 2016, the total net amount of claims and benefits and increase in provisions of PZU Group amounted to PLN 12,732 million. In relation to the corresponding period of the previous year, the value of claims together with the change in provisions was higher by 7.4%.

The following factors also contributed to the change in the net value of claims and benefits:

• increase in the value of claims and benefits in the group of insurance for other material damage in the mass client segment, including mainly the subsidized crop and livestock insurances as an effect of the number of claims caused by force of nature (adverse effects of wintering), which occurred in H1 2016;
• increase in the value of claims and benefits in motor TPL insurance in mass client segment resulting mainly from the increased insurance portfolio.

In turn, the declined value of net benefits and compensations was determined by the lower growth of mathematical provisions in successive tranches of the individual structured product offered in PZU’s own network associated with the 2016 decline of gross written premium revenue following the record-setting previous year.