The PZU Group continuously monitors insured events, in particular those related to the COVID-19 pandemic and high inflation.. Based on the ongoing analyses, the PZU Group adjusted the value of the IBNR provision to the increase in deaths observed at the end of 2022, resulting from the next wave of the COVID-19 pandemic and flu. A high inflation has translated into an increase in the levels of current and future indexation in the individually continued portfolio and thus into an increase in provisions.
In the case of non-life insurance, inflation contributed to an increase in the average loss paid, but no increases were observed on the direct claim handling costs side. Maintained levels of technical provisions are sufficient to cover probable excess claims inflation. For annuity provisions, the increase in indexation is offset by an increase in the discount rate.