Commercial Union Poland, the Polish operation of general insurer Aviva, has announced that it is to enter the direct motor insurance market. The company said that policies will be sold direct to customers via the telephone and internet.
Car ownership has grown exponentially in Poland over the past 15 years, with 43% of the population now owning cars. The Polish car insurance market is worth GBP1.9 billion and is expected to double within the next 10 years.
Furthermore, the demand for comprehensive insurance cover is also predicted to grow rapidly as people buy newer cars, prompted by the influx of European vehicles onto the used car market, since the country joined the EU. Currently only 26% of those insured have comprehensive cover, or ‘casco’ policies, compared with 80% in the UK, providing a major opportunity for insurers.
At present, Commercial Union Poland provides home insurance alongside its life and pensions business, which has more than three million customers in total.
Adam Uszpolewicz, Commercial Union Poland group chief executive, said: Direct motor insurance is a relatively new concept in Poland, but we predict the market will take off in much the same way it did in the UK in the early 1990s. More than half of UK motorists buy their policies direct today, and we expect that in 10 years’ time a third of motor policies in Poland will be sold via phone or internet. We already have a sizeable customer base in Poland and our brand enjoys high recognition, giving us a significant advantage in the market.