Poland’s insurance could be the latest sector to take a hit from the country’s road building binge as they begin to counting the losses they’ve suffered from the contracts with Polish builders. “So far, there are wounded, but no one was hurt fatally,” the manager of one insurer told daily Puls Biznesu. “We know how much will we lose on bankruptcies to this point, but it’s the uncertainty about the next months, and quarters, that’s difficult,”
The insurance market generates PLN 300m annually by guaranteeing contracts, and most of these come from the construction sector. Having competed fiercely for business with Poland’s biggest contractors in a bid to gain market share, insurers are now paying the price for working companies like PBG. “The whole market was involved in PBG,” an insurance agent told PB. “Everyone who wanted to matter on the guarantees market needed to have a construction giant in its portfolio.”
