An international insurance company
We were approached by an international insurance company and tasked to remove the monopoly of Ceska Pojistovna (local insurance market leader) on the third party motor insurance.
For five years, the government resisted all moves to introduce competition in the provision of this insurance product. Although several versions of the Bill were prepared by the finance ministry, none ever reached the cabinet because of perceived insurmountable “technical obstacles”. We were approached by an international insurance company wishing to provide this product and tasked to remove the monopoly of Ceska Pojistovna (local insurance market leader) on the third party motor insurance.
The last version of the Bill was prepared by the finance ministry officials just before the elections. Our task was first to push the Bill up the legislative agenda of the new government, and second, to reach a consensus on the proposal fast. Timing was essential. We had to deal with vested interests of Ceska Pojistivna and its polical allies on one hand and the over-ambicious demands of the industry association on the other.
We prepared a set of briefing papers highlighting the numerous benefits of removing the monopoly. In addition, we made sure that the media was fully briefed at every stage. In this way, we were able to expose efforts aimed at delaying de-monopolisation. The headlines in the Czech press –“XY prolongs Monopoly”– proved of a major help. Apart from neutralising the discrete obstruction through media exposure, We worked to moderate the politically naive approach taken by the Association of Insurance Companies. Its requirement for an annual premium increase of 60% would endanger the passage of the whole Bill. We succeeded in building a powerful coalition of interests behind the compromise including the Ministry of Finance.
The Bill was approved and the third party motor insurance monopoly removed.