Consolidation predicted in market as life insurers pessimism about future grows

The heads of life insurance companies anticipate a sudden breakdown of the market. The 23% growth of the life insurance market is a sign of a coming crisis, which may last three years. In mature markets the slowdown in the growth of the insurance market takes place every 10-20 years. It has been 10 years since the first commercial life insurance company began operating in Poland. There are many reasons why the life insurance market in Poland is beginning to have difficulties. Poles believe pensions from the pension fund system will be sufficient. At the same time the third pillar of the pension system reform is not working and there is no sign that in the nearest future the situation may change. The life insurers will begin to form financial groups, others will have to rethink their plans for the nearest future. The smallest companies will probably begin to sell their customers. In the opinion of Andrzej Wojtynski, the head of Gerling Zycie, in 10 years there will be room for 40-50 life insurance companies. (Puls Biznesu, page 1,6)