19. Acquisition expenses
Reference Areas:
Health
Investments
Banking
Best Pratices in PZU
Acquisition expenses include expenses related to the conclusion and extension of insurance agreements. Direct acquisition expenses include, among others, cost of commission for insurance intermediaries, employee remuneration costs associated with the conclusion of insurance agreements, cost of attestations, expert opinions and studies related to the accepted risk. Indirect acquisition expenses include costs of advertising and promoting insurance products and costs associated with the examination of applications and issuing policies.
According to the accrual accounting principle, some of the acquisition expenses are amortized over time, in accordance with the principles described in sections 29.1.1 and 29.1.1 29.1.2.
| Acquisition expenses by type | 1 January – 31 December 2017 | 1 January – 31 December 2016 |
| Consumption of materials and energy | 27 | 27 |
| Third party services | 83 | 95 |
| Taxes and fees | 5 | 6 |
| Employee expenses | 549 | 509 |
| Depreciation of property, plant and equipment | 23 | 23 |
| Amortization of intangible assets | 34 | 34 |
| Other, including: | 2,266 | 2,167 |
| - commissions in insurance activities | 2,200 | 2,092 |
| - advertising | 59 | 68 |
| - other | 7 | 7 |
| Movement in deferred acquisition costs | (86) | (248) |
| Total acquisition expenses | 2,901 | 2,613 |
