Warsaw (Puls Biznesu) – AXA will offer car insurance in direct system at first. Competition is not worried.
AXA, Europe’s second largest insurance company, may finally succeed in entering the Polish market. After it failed in 1990ies when a 30 percent stake of PZU was put up for sale by the state, and recently it has not managed to acquire life insurer Nationwide (today: Aegon), AXA decided to modify its strategy.
“AXA has decided for a start-up company. It will appear as AXA’s subsidiary Avnassure. The latter will sell its products under AXA brand. The detailed deadline is our strategic decision which we do not want to reveal”, Slawomir Bilik which runs the project said.
Slawomir Bilik has recently be the head of AXA Assistance, a company offering assistance services for other insurers.
Market speculates it will be at the beginning of May. AXA Assistance, which works for other insurers, including PZU and Warta, will be named Interpartner Assistance to avoid allegations of conducting conflicting operations. Despite the new project, AXA has not given up acquisitions in Poland altogether.
“We are closely watching insurance markets and if an opportunity appears, we will for sure not let it go easily”, Slawomir Bilik assured.
At first, the Frenchmen will offer asset insurance.
“We will start with selling them in the direct system”, Slawomir Bilik said.
It is possible that the offer will be enlarged by further products, including life insurance. Rivals do not worry.
“AXA’s capital potential does not ensure the company a success in the Polish market although it may make it easier. Besides, winning the market with the direct system is much more limited than the traditional way with agents. I do not expect AXA to start price war as this would be a short-term solution”, Michal Gomowski from Generali insurance company said.
Michael Mueller, TU Allianz and Allianz Zycie deputy CEO agrees.
“The Polish market is already divided and the direct system limited. AXA will be rival to Link4 (offering direct services) and the leader PZU. The two companies should worry about their market shares. Without dumping prices it will be difficult for them to get a bigger part of the insurance cake”, TU Allianz deputy CEO commented.