Aviva's Polish operation, Commercial Union Poland, is to enter the direct motor insurance market, taking advantage of the burgeoning growth in car ownership and the population's rapidly rising levels of disposable income.
Aviva's Polish operation, Commercial Union Poland, is to enter the direct motor insurance market, taking advantage of the burgeoning growth in car ownership and the population's rapidly rising levels of disposable income. Policies will be sold direct to customers via the telephone and internet. Commercial Union Poland already provides home insurance alongside its life and pensions business, which has more than three million customers in total.
Car ownership has grown exponentially in Poland over the past 15 years, with 43% of the population now owning cars (a similar level to the UK), and the car insurance market - worth £1.9 billion1 - is expected to double within the next 10 years.
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. The average age of used cars bought in Poland is decreasing, as sales of new cars increase. Currently only 26% of those insured have comprehensive cover, or "casco" policies, compared with 80% in the UK, providing a major opportunity for insurers.
Tidjane Thiam, group executive director, said: "We're excited by the potential of the direct motor insurance market in Poland. We have a proven track record in launching and running successful direct motor insurance businesses in other markets including the UK - where we are the number one general insurance provider - as well as Ireland and the Netherlands, and we will draw upon this expertise in launching our Polish operation. The Polish economy is booming and we believe this is the ideal time to enter this dynamic market."
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 ten 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."
-ends-
1 in terms of premiums
Enquiries:
Aviva plc
Vanessa Rhodes, media relations manager
+44 (0)20 7662 2482
James Murgatroyd/Ed Simpkins, Finsbury
+44 (0)20 7251 3801
Notes to editors:
- Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2005.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.