Country Panel Presentation: Poland€¦ · • The social security in Poland consists of: old–age pension, invalidity pension, sickness and maternity insurance, insurance against
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2016 IGP Regional EMEA Seminar Windsor, May 24-26, 2016
Joanna Grudnik, Group Business Operation Director
This presentation was exclusively prepared for the attendees of the 2016 IGP Regional EMEA Seminar. None of the contents of this presentation may be copied or disclosed to any other party or used for any other purpose than the one mentioned above without IGP's prior written permission.
• Geographical coverage: 40 countries 4 continents
• Products and services: life insurance, annuities, retirement-related services, mutual funds and investment management
• Assets: approx. 1 187 billion USD
Pramerica Życie TUiR SA is a subsidiary of Prudential Financial, Inc. (PFI)*
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Company Info
* Prudential Financial, Inc., a company incorporated in the United States, is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. For more information, see www.pramerica.pl or www.prudential.com.
• The social security in Poland consists of: old–age pension, invalidity pension, sickness and maternity insurance, insurance against accidents at work and occupational diseases, health insurance family benefits, uneployment benefits.
• The following benefits are payable in various situations: In respect of old age
‐ Old-age pension. In respect of the long-term incapacity for work
‐ Disability pension, training pension. In respect of sickness and maternity
‐ Sickness allowance, maternity or paternity benefit, rehabilitation allowance. In respect of accident at work and occupational disease
‐ Lump-sum compensation, benefits in respect of sickness, disability pension Other
‐ Funeral grant, social pension, pre-retirement benefit, Childsupport Benefit “Family500+”
• The tasks in the sphere of social security are exercised by many institutions, including: The Social Insurance Institution (Zakład Ubezpieczeń Społecznych –
ZUS) – is the main enforcement authority with regard to social security regulations. It collects social insurance contributions and distributes benefits.
The Ministry of Labour and Social Policy (Ministerstwo Pracy i Polityki Społecznej – MPiPS) – organizes benefits in respect of unemployment, family benefits and social benefits (from social assistance).
The National Health Fund (Narodowy Fundusz Zdrowia – NFZ) – organizes benefits in kind from the health insurance, gives access to general practitioners and other doctors and public hospitals.
The Open Pension Funds (Otwarte Fundusze Emerytalne – OFEs) – collect and invest funds to finance a part of an old-age pension under the new rules within the second pillar.
• Average sum assured for spouse’s death is USD 5.000, child birth benefit is USD 500.
• Average monthly premium is USD 15.
• The market is dominated by one insurer – 50% market share.
• Package especially popular among employees with lower salaries (e.g. production plants), several of these benefits were covered in the past by the Social Security
• Only approx.10% of such programs are sponsored by Employer
Customary Private Employee Benefits Typical Plan Design
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Quotation no: 107657041401 Group name: all employees Number of employees: 548 Average age: 41,98 Monthly premium: 34,83 PLN
Monthly premium Scope of coverage Sum Assured Benefit Premium per
Insured Premium per
Group Insured's Death 100 000,00 PLN 100 000,00 PLN 15,76 PLN 8 636,48 PLN Death due to an Accident 100 000,00 PLN 200 000,00 PLN 2,88 PLN 1 578,24 PLN Inability to Work caused by an Accident or Illness 100 000,00 PLN 100 000,00 PLN 4,95 PLN 2 712,60 PLN Total 34,83 PLN 19 086,84 PLN
Example of Employer sponsored group life insurance Very basic program
Customary Private Employee Benefits Typical Plan Design
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Example of Employer sponsored group life insurance Standard program
Quotation no: 107657041401 Group name: all employees Number of employees: 548 Average age: 41,98 Monthly premium: 47,02 PLN
Monthly premium Scope of coverage Sum Assured Benefit Premium per
Insured Premium per
Group Insured's Death 100 000,00 PLN 100 000,00 PLN 15,76 PLN 8 636,48 PLN Death due to an Accident 100 000,00 PLN 200 000,00 PLN 2,88 PLN 1 578,24 PLN Detriment to the Health due to an Accident 100 000,00 PLN 100 000,00 PLN 11,24 PLN 6 159,52 PLN
for 1% of detriment 1 000,00 PLN Inability to Work caused by an Accident or Illness 100 000,00 PLN 100 000,00 PLN 4,95 PLN 2 712,60 PLN Insured's Hospital Care (180 days maximum)
due to an Illness (up to 14th day / after 14 days) 100,00 PLN 100,00 PLN / 100,00 PLN 3,61 PLN 1 978,28 PLN due to an Accident (up to 14th day / after 14
Customary Private Employee Benefits Typical Plan Design
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Example of Employer sponsored group life insurance Top-end program
Monthly premium Scope of coverage Sum Assured Benefit Premium per
Insured Premium per
Group Insured's Death 200 000,00 PLN 200 000,00 PLN 31,51 PLN 17 267,48 PLN
Death due to an Accident 200 000,00 PLN 400 000,00 PLN 5,75 PLN 3 151,00 PLN Death due to a Transportation Accident 200 000,00 PLN 600 000,00 PLN 2,88 PLN 1 578,24 PLN
Death due to an Accident at Work 200 000,00 PLN 600 000,00 PLN 2,15 PLN 1 178,20 PLN Death due to a Transportation Accident at
Work 800 000,00 PLN Detriment to the Health due to an Accident 100 000,00 PLN 100 000,00 PLN 11,24 PLN 6 159,52 PLN
for 1% of detriment 1 000,00 PLN Inability to Work caused by an Accident or Illness 100 000,00 PLN 100 000,00 PLN 4,95 PLN 2 712,60 PLN Insured's Critical Illness (37 illness units) 20 000,00 PLN 20 000,00 PLN 7,30 PLN 4 000,40 PLN Insured's Hospital Care (180 days maximum)
due to an Illness (up to 14th day / after 14 days) 100,00 PLN
100,00 PLN / 100,00 PLN 3,61 PLN 1 978,28 PLN
due to an Accident (up to 14th day / after 14 days) 200,00 PLN
• Due to the historical background circa 100% of the mid and large companies have a group life insurance policy in force and circa 70% of them are purely on voluntary basis – the premium is just deducted from Employee’s monthly net salary and the conditions are negotiated by the employees’ representatives.
• The trend that we observe is the growing engagement of the Employers in the group life contracts. Being a party of the insurance contract and having a legal responsibility for these plans, Employers want to be engaged in the plan design, its conditions and the premium payment.
• The basic value of financing the group life insurance from the Employer perspective is: The premium may be treated as a tax deductible cost for the
company (Corporate Income Tax Law). Employer may be exempt from the obligation to pay out
severance pay for the deceased (Labour Code). Motivation tool to attract new employees and keep existing