Insurance companies are having an expensive year as their running costs rise

The cost of doing business for insurance companies in the first quarter of this year was zl. 4.8 billion, a rise of 22.16% over last year. Compensations accounted for 45.5% of costs, but which are actually down by 4.3% on last year's figures. There were a lot of newcomers last year in the insurance sector, and so start-up costs have contributed to the figure. Administrative costs have increased by 15.38% and network development costs have increased by 11.96%. Insurance companies have spent 23.5% more on creating technical-insurance reserves. Analysts suggest some of the larger insurance could perhaps join forces, both to cut costs and to offer a wider range of products without the expense of start-up costs associated with launching a new product. (Prawo i Gospodarka, page 1, 10) M.M.