Last year’s slowdown in the Polish economy yielded new opportunities for the Polish bancassurance market, even though customers became more careful about entering into financial obligations. Rising unemployment and the uncertain solvency of many housing developers made Poles more aware of the need to insure their financial commitments.

Source: Europa Capital Group

“Nobody bothered themselves with the thought that they could possibly lose their job or become sick.”

Attitudes began changing last year, when mortgage-takers in particular started to inquire about various insurance options after seeing the negative effects of the sluggish world economy.

Indeed, it is not only mortgage-related products that customers have begun to inquire about. Financial advisory Xelion also noted a rise in demand from the end of 2008 for secure investment products such as Certificate of Deposit (CD) accounts in the form of life-insurance policies. These allow the client to avoid the usual 19 percent tax on interest when the money is withdrawn.

“After the slump in the markets, customers were interested primarily in secure products. Potential profit from investment was secondary,” said Marek Rybiec, a board member and sales director at Xelion.

Norbert Jeziolowicz of the Polish Bank Association (ZBP) said that assistance products accompanying bank accounts or credit cards have also gained in popularity. Mr Jeziolowicz noted that the Polish market is getting more mature.

“Last year we co-ordinated the creation of a code of conduct for the bancassurance market,” he said.

The future of the industry looks bright. Mr Rybiec said that customers are becoming increasingly knowledgeable about how to manage their investments. “More Poles see benefits from tax optimization as well as from saving regularly,” he said.

“Banks will start to offer more complex insurance, catering to clients’ whole lifespan – from studies to retirement,” said ZBP’s Jeziolowicz.