The so called “Religa tax” implemented by the Minister of Health Zbigniew Religa is supposed to cover costs of curing victims of car crashes. Before it came into force, insurance companies warned that policy prices would grow. Yesterday, PZU, Poland’s biggest insurer, said that it would cover higher costs.
“Polish drivers don’t have to worry. We behave the way a responsible company and a flag insurer should”, Agata Rowinska, PZU CEO said.
She hopes to win new clients.
“Drivers will have the choice to either buy a police at PZU or at a company which will raise the premium. Unless the latter does it, it may have problems with providing proper security”, Agata Rowinska said.
Experts are not worried about security.
“The majority of insurance companies belong to international financial groups which will not put client security at risk”, Marcin Broda, insurance expert said.
He believes, however, that some companies may withdraw from offering car insurance.
PZU had PLN 2.6 billion (EUR 689m) of net income in the first half of the year. It is one of few insurers with income generated by car policies. The Polish Insurance Chamber estimates that PLN 600m of “Religa tax” will be paid by insurers next year, including PLN 270m from PZU which has 45 percent of the market.
“We assume that we will manage to reduce administration costs and win new clients, which will cover the loss generated by the tax”, Rafal Antczak, PZU chief economist said.
Some companies, including PTU and Generali, are going to raise prices. Others, including Allianz and AXA Ubezpieczenia wait for the Constitutional Tribunal to decide whether the tax is legal. Still others, including Link4, believe that even if they raise prices, their policies will still be cheaper.
(PLN 1 = EUR 0.265)