Pojišťovna VZP a.s.
was established as a subsidiary of Všeobecná zdravotní pojišťovna České republiky on 16 January 2004. The company’s registered office is at:
Ke Štvanici 656/3
186 00 Prague 8 – Karlín
The establishment of the company is closely related to the amendment to Act No. 363/1999 Coll., on Insurance, as amended, where the possibility of conducting insurance activities by other legal entities pursuant to a special legislation was abolished in Section 3(2), with this scope of activities being limited solely to joint stock companies or co-operatives. These changes took force on 1 January 2004.
Based on this fact, Všeobecná zdravotní pojišťovna České republiky (hereinafter referred to as “VZP CR”) was not authorised to continue performing the insurance activity of the contractual (private) medical insurance provider.
However, the contractual medical insurance operated by VZP CR was still supported by the Public Medical Insurance Act, which allowed it to operate until the accession of the Czech Republic to the European Union, i.e. until 1 May 2004.
VZP CR had been providing contracted medical insurance – insurance of medical expenses incurred abroad and foreigners’ medical insurance, since 1993 and had built a strong market position in this area. In the field of foreigners’ medical insurance, it even played a very important role, which awas that of providing a social safety net, as foreigners who did not meet the conditions for inclusion in public medical insurance had no other way of paying for healthcare than by paying cash directly to the healthcare facility.
Based on the decision of VZP CR’s Board of Directors, VZP CR addressed the impact of the amendment to the Insurance Act on the operation of contractual medical insurance by setting up a subsidiary joint stock company. The following steps were taken as part of the process of creating a separate entity, i.e. Pojišťovna VZP, a.s.:
VZP CR’s insurance activity in the field of contractual medical insurance was terminated as at 1 May 2004 and the role of the active insurer was transferred to a new subsidiary under the trade name Pojišťovna VZP, a.s., which simultaneously assumed the insurance portfolio. However, VZP CR remained the main distribution network for the insurance products of Pojišťovna VZP, a.s.
Despite the demanding transformation process, the impacts of the Czech Republic’s entry into the European Union on the insurance products and the establishment costs incurred, Pojišťovna VZP, a.s. achieved a very favourable economic result in the first year of its independent operations on the insurance market. At the same time, its registered capital was increased to CZK 100 million from internal sources.
All the funds invested into the subsidiary of VZP CR were solely funds accumulated from the operation of private supplementary insurance, not funds from the public healthcare system.
Over the years, Pojišťovna VZP, a.s. consolidated its position on the insurance market. In 2009, it managed to increase its registered capital from 100 million to 120 million crowns. During the following years, its registered capital was gradually increased and reached 210 million crowns in 2012.
In 2010, as part of increasing the range of services offered to clients and expanding its product portfolio, it applied to the Czech National Bank for an expansion in the scope of its authorised activities. The Czech National Bank approved the expansion in licences to include, among others, accident insurance, illness insurance, insurance of damage to land vehicles other than railway vehicles, insurance against property damage, general liability insurance, insurance of various financial losses, legal protection insurance and insurance to assist people in distress when travelling or away from their place of residence.
This fact enabled the commencement of the insurer’s expansion stage on the insurance market.
The first step in building a new product portfolio was to create a comprehensive range of travel insurance products. Insurance of medical expenses incurred abroad was thus expanded with the addition of other supplementary insurance products, namely accident insurance, liability insurance and personal effects insurance. In autumn 2011, Pojišťovna VZP, a.s. launched two new products, PATRON health insurance and exclusive medical insurance for foreigners.
The Accident Insurance product was launched onto the market In spring 2012, with autumn of that same year marking the launch of the property and liability insurance products ENTREPRENEUR– Insurance of medium sized businesses, and DOCTOR – Insurance of property and liability combined with the professional liability of outpatient healthcare providers, including pharmacies and optician shops. The PATRON product was also expanded to include insurance of premium healthcare.
A new and uniqueproduct was launched in April 2013, called Foreigners’ Comprehensive Medical Insurance Exclusive, which is the first commercial medical insurance for foreigners, the scope of which is identical to that provided under public medical insurance in the Czech Republic. In 2017, PVZP, a.s. entered the market with its new employee liability insurance.
Another important step was an increase in the capital of Pojišťovna VZP, a.s. to CZK 300 million, which took place in April 2017.
Pojišťovna VZP, a.s. is a member of the Czech Association of Insurance Companies since 2007.