Life insurer Aviva životní pojišťovna a s turned in a record increase in volume of new business over Q1 of 2010, 47% up on the figure for the same period in 2009.
Life insurer Aviva životní pojišťovna a s turned in a record increase in volume of new business over Q1 of 2010, 47% up on the figure for the same period in 2009. Interest is mainly focused on products offering strong insurance cover.
The rising trend in life insurance policies with insurance cover over the first three months of this year confirms that people in the Czech Republic are starting to become more interested in securing members of their family against what life might throw at them and that they primarily look on life insurance as a risk coverage tool.
"The 47% increase in volume of sales is the result of product innovations brought in over 2009, when we significantly strengthened the protective element under our insurance policies. Most new policies are taken out at a standard premium, with a focus on strong insurance cover,” Karel Veselý, general manager at Aviva životní pojišťovna, a s, comments on the results achieved.
The changes to the product range were partly a consequence of the economic crisis, which boosted the demand for risk coverage products, and partly down to a certain generational change in potential life insurance customers. It is the lifestyle of the younger generation (eg higher debt levels) which is prompting clients to take out life insurance for their own protection and to provide security for their loved ones in the event of anything going wrong, such as a tragic car accident or redundancy. Aviva also extended its range of supplementary insurance products in 2009 because of this.
"The trend towards increased interest in insurance cover is also confirmed by the sums insured for our products. For example, the average sum insured for Aviva Vision, one of our products, broke the CZK 1.1 million barrier in the first quarter of this year, which is way above the average in the Czech Republic," Karel Veselý explains.
"Our customers are not just focusing on straight life insurance, but are also extending their policies to include various supplementary policies, such as supplementary insurance against accidents with permanent consequences, taken out by approximately 85% of Aviva EasyLife customers," Mr Veselý goes on to say.
The additional cover taken out for Aviva Vision provides further evidence of customers' interest in risk coverage. Some 50% of customers have taken out additional critical illness insurance, with an average sum insured of CZK 700,000, and 40% of customers have taken out additional permanent total disability insurance, with an average sum insured of CZK 1 million.
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For more information please contact:
Milan Starý, Marketing Manager Aviva životní pojišťovna a s
E-mail: milan.stary@avivazp.cz
Note for editors:
The origins of Aviva date back to the end of the 17th century, more than 300 years ago. Aviva plc is currently the fifth biggest insurance group in the world, the foremost life insurance company in Europe and the biggest insurer in Great Britain. The company’s core business is the provision of life and property insurance services and fund management.
Assets managed by the company as at 31 December 2009 exceeded £379 billion sterling. The company employs 54,000 people providing services for 53 million clients in 28 countries worldwide.
Aviva plc has been active in the Czech Republic since 1997 via its 100% owned subsidiary company Aviva životní pojišťovna a s (known as Commercial Union životní pojišťovna, a s until 2002). It specialises in investment life insurance products (Aviva EasyLife, Talisman, Aviva Royal, Aviva Vision). Aviva regional offices can be found in all regions of the Czech Republic.