– In this difficult situation, we will not leave any of our clients without care and support. PZU has extensive experience in handling mass claims resulting from the effects of atmospheric elements – assures Irmina Nowak, Managing Director for Claims and Benefits Handling at PZU, quoted in announcement.
PZU is in cities affected by flooding
Mobile Offices, including a large bus, which can be deployed at any time to make it easier for victims to complete all formalities immediately, as well as PZU experts, are in Lower Silesia. The hotline staff has also been increased and a simplified claims handling procedure has been launched to money from the insurance were transferred to the accounts of flood victims on the same day the report was received. Earlier, PZU also sent text messages to its customers warning about the threat.
PZU shares collapsed after the flood
However, investors do not appreciate such an attitude. On Monday, the shares of the largest Polish insurer, at the same time the only one listed in WIG20, fell by 7.36% to PLN 39.15. PZU has not been valued so poorly since September 2023. The reason for this is simple. The flood experienced by residents of the Lower Silesia, Opole and Silesian voivodeships means additional costs for PZU.
First of all, PZU will have to pay for eliminating the consequences flood insured with them. Field workers and more staff at the hotline also mean additional funds for salaries. The data provided by the insurer actually shows that there are record numbers of claims, which means record numbers of compensations.
Record number of reports in PZU
Over the weekend, PZU was supposed to receive over 3,000 reports of damage caused by weather factors. This is almost nine times more than on a typical weekend. “We paid the first advances on compensation to our clients – flood victims yesterday. Mobile PZU experts, who have been waiting on standby in Lower Silesia since Friday, are now heading to towns where the water has receded enough to allow access and start estimating damages,” PZU reported.
However, it is not certain that the flood will sink the insurer in the long term. “Although the company may be struggling with increased pressure to pay compensation, it is worth bearing in mind that insurance companies often secure themselves (reinsure) with external entities on accident unexpected events” – notes Mateusz Czyżkowski, XTB analyst, in a commentary for bankier.pl.
“In the medium term, PZU and other insurers may see greater interest in insurance products from the public, which will have a positive impact on the results of companies in this sector,” he added.