PZU prepares for an overdue overhaul

PZU, the largest domestic insurance company, has begun execution of one of the priority elements of its recently prepared strategy. The plan envisages cutting costs by zł.200 million annually by 2010 and implementation of the restructuring scheme is required as PZU's costs are growing at a faster speed than its revenues. This year's budget estimates that revenues from insurance policies will rise by 4.2%, while operational costs for the company's headquarters are to increase four-fold. PZU plans to engage consultants from Ernst & Young to help carry out the restructuring. The audit is to include identification of the most costly areas of business, while preparing the cost cutting program's implementation is to last at least three months. The first cuts are to be introduced this year. The main areas which are to be studied include employment, IT, marketing, outsourcing services and real estate management. The cost of the project is estimated at zł.3-4 million. (Puls Biznesu, pp.1, 4, 5) A.K.