Inviting the future while keeping risks at bay

For a long time, it seemed that insurance was exempt from technological change and it continued to operate much as it had done for decades. That era of relative stability came to an end with the increasing deployment of advanced sensor technologies. Like other major industries before, insurance is now having to face the risks – and the opportunities – of new technologies.

Martin Jan Bonhard, Director of Marketing, Communication and Innovation, welcomes the change and feels that it is important to be open to new market developments. “Our products are fully in line with the new trends,” he emphasizes. “Of course trends and technologies keep changing, just like the needs and habits of our clients. It is extremely important to be able to respond fast and cooperate with the new startups, InsureTecs and sales channels.”

Its open-minded business approach has proved one of Komerční pojišťovna’s greatest assets, and has contributed to its successful development. The company is a subsidiary of Komerční Banka, the third-largest bank in the Czech Republic, and employs between 200 and 250 people. Apart from its headquarters in Prague, Komerční pojišťovna operates a back office in Jihlava.

“We benefit from a very open, international business structure and the exchange with our head office and other subsidiaries,” adds Mr. Bonhard. “Communication is easy, our structure is flexible and hierarchies are not so important.There is a high level of identification with the company, as we take our goals very seriously and work hard to achieve them.”

Komerční pojišťovna supports this development with online products and services. “You can use your smartphone to take out insurance now,” points out Mr. Bonhard, himself a customer of Komerční pojišťovna. “I arranged insurance for my skis while I was on my way to the mountains for instance.”

Komerční pojišťovna has recognized the need to adapt to the changes the insurance industry is faced with – and the opportunities. The company’s current product portfolio is based both on decades of experience in the insurance sector and its cooperation with customers. It accounts for the needs of elderly people wishing to invest money – safely combined with appropriate insurance to meet their needs in challenging life situations and of young people looking for innovative products.

“We have the backing of a bricks-and-mortar bank with a very affluent and conservative clientele,” says Mr. Bonhard. “We are able to offer products for all areas of life, and accompany each phase of life in order to support people’s dreams and needs. Our focus is on lifecycle products that respond to customer needs and their requirements.”

Komerční pojišťovna offers traditional life insurance products such as Vital Invest with unit-linked savings features, along with risk, life and banking products such as mortgage, property, credit card and check account insurance. Various travel insurance schemes account for the needs of occasional and frequent travelers, while the company’s insurance for children and youngsters serves as a tool to protect children and create a financial reserve.

MUTUMUTU is an online life insurance for young people and covers the loss of income in case of incapacity, disability and death, according to the client’s needs. As a special feature, the client can earn up to 30% of the paid insurance back as a reward for a healthy lifestyle. Cubiq is another innovative product recently launched. “We believe that this product will be cool for our clients. The online insurance provides protection for valuable items such as mobiles and sports equipment on a monthly basis, an absolute novelty in the Czech market,” stresses Mr. Bonhard.

As people grow up, start a job, find a partner, raise a family and maybe set up their own business, they are faced with various risks they wish to keep at bay in order to protect themselves, their loved ones and their property. In the past, insurance was an industry with low consumer involvement, yet this situation too is changing, with higher expectations for technology-based services, convenience, speed and a personalized experience. Komerční pojišťovna has decided to face the tide of the times and focus on products and services that are based on user experience. At the same time, the company is implementing new technologies to provide new ways to measure, control, price risk, engage with customers, reduce cost and expand insurability.

“We have gone into agile mode,” sums up Mr. Bonhard. “Komerční Bank is leading the way where digitalization is concerned, and we are following suit and collaborating in a number of future-oriented projects. Thus, we are well prepared to face the challenges of the 21st century.”