Life insurance is an instrument that provides economic security for the lives in a family, yet this remains neglected in Czech market. On comparison with other counterparts like Germans or Austrians, Czech spends three times lesser on life insurance. Thus, the life insurance market has immense scope for growth and is expected to yield quality results given variations in the business model of life insurance distribution. Many of the current consumers of life insurances are not satisfied with the type of insurance products as they do not suit the needs of the users. This also is due to the fact that the financial advisers lack the required degree of expertise to help with respondents’ claims. The terms and conditions of the life insurance products are rather unclear to the users and is left to their own preconceived notions.
In the news recently, Czechs have been fighting bug life insurance players after being convinced to buy long lasting new investment insurance policies and duped with promises of security, high returns and savings. Promotions were undertaken in large scale through massive sales campaigns and exorbitant fees for agents were levied by insurers which buyers were unaware of. These have led to huge amount of losses to many individuals and have taken the legal route.
A typical Czech market feature is the presence of large number of insurers which will not be profitable for many insurers in the long run. A strategy to uphold here is undergoing consolidation to reduce the providers and strengthen the business inorganically. The future of life insurance vests on digitalisation and automation, optimising distribution channels, improved customer relationships and meeting the demands of increased regulations.
Ken Research’s Strategic Market Intelligence: Life Insurance in the Czech Republic-2017 gives a comprehensive analysis of the Czech life insurance market in review period of 2012-2016 and also on forecast period of 2016-2021. The report offers detailed analysis various segments of Czech life insurance market and compares it with its counterparts. The report provides analysis on various distribution channels, risk governance and its impact on life insurance in the country. This report will help in making strategic decisions based on forecasted data and helps in identifying competitive dynamics in the life insurance market. The key competitors in the life insurance market segment of the country are ?eska Pojis?ovna, Kooperativa pojistovna, Pojistovna Ceske, NN Zivotni, CSOB Pojistovna, Generali Pojistovna, Allianz pojistovna, MetLife Europe, Ceska podnikatelska and Komercni pojistovna.
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Ankur Gupta, Head Marketing & Communications