Compensa restructures business
The development strategy of Compensa foresees a gradual increase in the life assurance business whilst reassessing the position of property insurance. Sławomir Waleryś, MD of Compensa Życie and deputy MD of the Compensa group says that his company is taking into account the policy of Hamburg-Mannheimer, their largest shareholder. They aim to attract clients offering life products and then use this to introduce their property insurance products. Walerys also heads the management group formulating joint policy between his company and that of Hamburg-Mannheimer. He believes that by the end of this year both companies should have the same regulations. Life assurer Compensa Życie hopes to increase contributions from PLN14.6m in 2000 to around PLN55m — PLN60m by the end of this year. Sławomir Waleryś believes that the company will be in the top ten life assurance companies by the end of the year. In order to realise this plan it will be necessary to increase share capital from PLN36.3m to PLN114m. Compensa Życie will also be launching an investment fund on the insurance market. The company increased the number of its agents to 3,000 in the past six months. It does not foresee any more increase in numbers but does hope to increase their efficiency. Sławomir Waleryś believes that the first profits should be made in 2004-2005. The property insurance wing of the Compensa group is going through difficulties. Over the past two years it has fallen from fourth position in the market and it has lost more than PLN150m. Sławomir Waleryś says that the company is attempting to solve these problems by separating administration from sales and centralising underwriting and liquidation. Restructuring should increase efficiency and reduce costs. Up until now every department at Compensa was responsible not only for sales but also its own administration.