Bancassurance begins to displace insurance agents

Agents managed to gather zl.22.6 billion in contributions from the market in 2005, which was about 73% of insurer's overall income. On the other hand, bancassurance (selling policies through banks), gave zl.2.2 billion in 2005, which was a 53.8% increase with regards to 2004. At present sales through banks account for 14.4% of insurance companies revenues, while three years ago it was merely 0.7%. This growth is stimulated by the increase in the amount of mortgage loans, which need life insurance as collateral. The leaders in the life insurance sector are Nationwide (now Aegon), PZU Zycie, Amplico Life and Nordea. This year, bancassurance is expected to bring zl.4 billion in premiums. Property insurance is much less impressive than life insurance - in 2005 through bancassurance and telephone sales it collected zl.217.3 million (10 times less than life insurance). Telesales turned out to be the best distribution channel, bringing zl.128.1 million, 98.3% of which went to Link4. (Puls Biznesu, p.13) J.L.