Small players worried about PZU's decision to leave premiums unchanged

In a move that surprised smaller insurance firms, Poland's largest insurer PZU decided against raising its obligatory car insurance premiums in both 2000 and 2001. The decision sparked fears among many smaller companies who recently increased their rates, expecting the dominant player would no longer be able to maintain its low rates on automobile coverage. The move may have more serious consequences, as the second-largest insurance company Warta is also planning to leave its premiums unchanged. Among those most likely to be affected is Compensa, which was forced to increase its premiums to finance its restructuring. (Prawo i Gospodarka, p.8)