The evolution of the bancassurance market in Poland in the years 2012–2022

Abstract

Insurance distribution takes place largely through intermediary channels, including bancassurance and the significance and role of this channel have undergone significant changes in recent years. The purpose of this article is to analyze the changes occurring in the bancassurance market in Poland between 2012 and 2022 and to identify the factors determining the decline in the importance of the banking channel in the distribution of insurance products. To achieve this objective, an attempt has been made to answer the following questions:

• how did the share of banks in insurance distribution in Poland evolve between 2012 and 2022?
• what factors contributed to the decline in the importance of the banking channel in the distribution of insurance products?
• did the changes occurring in the bancassurance market contribute to an increase in the level of consumer protection in this market?

This article draws on a review of the relevant literature and an analysis of numerical data from reports by the Polish Chamber of Insurance and the Polish Financial Supervision Authority. The bancassurance market underwent significant changes between 2012 and 2022. The analysis presented in this article shows that this market experienced a major transformation in its cooperation model – banks moved away from distributing insurance through a group model and shifted to an individual model. The reason for this change was the mismatch between insurance products and the needs and expectations of customers, particularly in the case of non-professional customers (consumers), which prompted a response from the regulator. Prior to 2015, banks offered insurance linked to banking products exclusively in the form of group insurance. However, since 2015, individual insurance has come to dominate the market. The entry into force of Recommendation U, the Act on Insurance and Reinsurance Activities, and the Act on Insurance Distribution led to a decline in insurance sales through the bancassurance channel. The banking channel’s share in generating gross written premiums for Class I insurance decreased from 39% in 2012 to 16% in 2022 and remained at a comparable level for Class II insurance (2–3%). Similarly, the number of Class I insurance contracts concluded has decreased. Further changes in this market are expected to result from regulatory decisions at the highest levels.