In the first quarter, Komerční pojišťovna became the second most important insurance company on the life market

Press release

5/17/2010
8:00 AM

The continuous growth in the interest in Komerční pojišťovna's products can also be seen in 2010: by the end of the first quarter, the company's premium written for life assurance policies had amounted to CZK 2.73 billion, which made it the second most important insurance company on the Czech life market with a market share of 16.5%.

In 2009, Komerční pojišťovna's premium written for life assurance policies increased by more than 168% to CZK 4.56 billion. Komerční pojišťovna achieved this significant growth mainly thanks to the considerable demand for products where premium is paid on a one-off basis.

"Komerční pojišťovna was able to flexibly respond to the fast changes in clients' needs and preferences. Thus, the company turned the growing demand for secure products with guaranteed yields into a significant opportunity to increase its market share in life insurance" said Stéphane Corbet, member of Komerční pojišťovna's Board of Directors.

At the time of unstable financial markets, insurance products with a guaranteed return are very attractive for Czech consumers. Last year, Komerční pojišťovna's key products with a guaranteed yield, Vital Invest and Vital Premium, provided clients with a yield of 3.5% p.a. and 3.6% p.a., respectively. Komerční pojišťovna offers a guaranteed growth in value of up to 3.3% p.a. also for 2010.

The growing demand for Komerční pojišťovna's insurance products in recent years is practical evidence of the successful implementation of the bank insurance model. Sales of insurance products through the bank bring a number of benefits for clients - insurance products often suitably complement conventional banking services, and clients can receive full financial and advisory services at one place. Moreover, insurance products provided in this way are not burdened by higher costs of commissions that are paid to insurance agents or brokers.

"In the Czech Republic, bank insurance has a strong growth potential. In many Western European countries banks distribute more than one half of the life assurance production. In the Czech Republic, the three key insurance companies that apply this model in practice have a market share of 37%," added Stéphane Corbet.