New insurance company targets PZU's market share

A new insurance company, Moje Towarzystwo Ubezpieczeniowe (MTU) belonging to the Ergo-Hestia group, plans to offer simpler and cheaper insurance polices to the inhabitants of smaller cities. "We want to take customers from PZU, a s we address our offer to the same market sector. This group amounts to roug hly 12 million people," said deputy president of the MTU supervisory board, Małgorzata Makulska. The company plans to keep its operating costs low by no t constructing outlets or a sales network and by substantially limiting spen ding on advertising. MTU's products will be offered through the existing net work belonging to Poczta Polska - both post offices and delivery workers. "W e are not threatened with a sudden loss of market share, but predict growing competition not only from MTU, but also other companies from the EU. Our pro duct offer is well developed and elastic," said PZU spokesman Tomasz Fill. (Rzeczpospolita, p. B7) M.M.