To us there are Polish policies

Insurers of the new competitor are not afraid, as the life insurance market grows promptly and has the big reserves for the further dynamical development. Besides, for many of them preparing arrival Commercial Union Polska to Latvia became quite expected step after Poles have opened several years ago branch in Lithuania.
h2. Contrast of scales

The Latvian market of life insurance develops some years very impressing rates, and this year its some participants expect a 80100 percent gain. Therefore it is not surprising, that this rather small market has drawn attention of such giant, as Aviva (an annual sales volume of 21,3 billion GBP) and its affiliated Polish insurance group Commercial Union Polska (for July, 2006 the volume of the signed awards has made 1,2 billion PLN 212 million Ls). For comparison: for the first half of the year life insurance of the company working in the Latvian sphere have signed awards on 13,3 million Ls.
The entrance ticket for 9 million

As the Polish press informs, Commercial Union Polska is going to enter for the life insurance markets in Latvia and Slovakia after five years ago Commercial Union has based branch in Lithuania. The given information has informal character. Head Commercial Union Polska Zycie Зигмунд Костюкевич has told, that the definitive decision on the given question it is yet accepted. However managers Commercial Union Polska Zycie speak some years about plans on a gain of the Latvian and Slovak markets. And one of representatives of the Polish company has declared, that start in Latvia should manage Commercial Union no more than in 50 million PLN (about 9 million Ls). It is not clear Yet, what organizational form will be chosen by Poles for work in Latvia. But, most likely, they will open here the branch. From the explanatories given to Telegraph by the chairman of board Seesam Life Latvia by Victor Gustsonsom follows, that such way the easiest of possible alternatives of start on a place the market.

In a pond the pike is necessary

As the head of the Latvian association of insurance brokers Айгар Крумс has told to Telegraph, from occurrence of the new player the clients buying insurance policies, only will win. According to the expert, the competition in the life insurance market is now not so high (with it other experts) agree also, and the insurance companies have distributed among themselves market niches and in such favorable atmosphere enjoy prompt growth of sales. Occurrence Commercial Union can break a little this idyll, but is not too strong: Poles will supersede nobody from the market and to bankruptcy will not finish, but will force to start. In general, the additional competition can cause reduction of prices on insurance products, improvement of service and occurrence of new products.

However local insurers are not afraid of the new competitor it is to Telegraph heads of companies Sampo dzvba, Ergo Latvija dzvba and Seesam Life have confirmed.

Poles will entice shots

Ивар ПРИЕДИТИС, a member of board Ergo Latvija dzvba:

Start Commercial Union in the Latvian market is quite expected step, and the local companies prepared for it. But one aspect of occurrence of the new competitor all the same can is unpleasant excite our insurers as it is not excluded, that Commercial Union will entice people from departments of sales of firms already operating in the market as it was at start of Poles in Lithuania.

Under the Estonian scenario

To Christina ЛОМАНОВСКА, the chairman of board Sampo dzvba:

Intentions Commercial Union surprise a little, as he has refused recently start in Estonia. In development of the Latvian life insurance the accurate tendency is traced: on it banks are actively developed, and on structure it becomes very fast identical to the market of Estonia. In this light plans Commercial Union look a little strange. On the other hand, growth of sales in our life insurance is so prompt, that outweighs any counterarguments.