Talent in Insurance 2015 Czech Republic in Focus

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UK Financial Services Insight Report contents

Czech Republic in Focus

• Macroeconomic and industry context

• Survey findings

Overall and youth unemployment, Czech Republic, 2008-2014

25%

20%

15%

10%

0% 2008 2009 2010 2011 2012 2013 2014

Overall Youth (Aged 15-24)

Growth in average real wages (US$), Czech Republic, 2008-2014

$1,600 30.0%

$1,400 25.0%

20.0% $1,200

15.0% $1,000

10.0% $800 5.0%

$600 0.0%

$400 -5.0%

$200 -10.0%

$0 -15.0% 2008 2009 2010 2011 2012 2013 2014

Average wages (monthly, US$) Growth in average wages (US$; % annual)

Note: Average wages (monthly): average gross earnings per worker per month Growth in average wages (annual): percentage change in hourly wages in US$ over previous period Figures are converted to US$ using an average exchange rate 5 Source: Economist Intelligence Unit © 2015 Deloitte LLP. All rights reserved. The Czech total GWP remained broadly stable between 2008 and 2013; 2014 saw marginal growth in GWP in Czech koruna1

Total gross written premiums in millions US$ and as % of real GDP, Czech Republic, 2008-2013 $10,000 3.5%

$9,000 3.0% $8,000

$7,000 2.5%

$6,000 2.0%

$5,000

1.5% $4,000

$3,000 1.0%

$2,000 0.5% $1,000

$0 0.0% 2008 2009 2010 2011 2012 2013

Gross Written Premium (millions US$) Gross Written Premium as a % of real GDP Note: 2014 data is not available Source: OECD 6 © 2015 Deloitte LLP. All rights reserved. 1Czech Insurance Association (CAP) Survey findings

Poland 2.98% Switzerland 2.93% Finland 2.67% Italy 2.23% South Africa 1.71% Belgium 1.51% Spain 1.40% Germany 1.31% France 1.30% Norway 1.29% Sweden 1.21% Austria 1.09% Czech Republic 1.05% Denmark 1.00% Netherlands 0.94% UK 0.53% Ireland 0.51% Middle East 0.38% UAE 0.37% Turkey 0.00% Russia 0.00%

Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers”. Sector popularity is calculated as the number of times individual employers in specific industries are short-listed among the five “ideal employers.”

8 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Insurance trails at 17th out of 24 industries, and its popularity more than halved in 2015. It is perceived as being boring and uncreative

Insurance and the eight most popular industries for business students, Czech Republic, 2014-2015

17.7% Fast Moving Consumer Goods 15.0%

16.0% Banks 22.7%

13.8% Software and computer services 14.1%

8.8% Public Sector and Governmental Agencies 0.7%

8.2% 2015 Auditing and Accounting 7.7% 2014

7.6% Transportation and Logistics 8.8%

5.2% Automobiles and Parts 5.9%

3.3% Media and Advertising 0.0%

1.1% Insurance 2.7%

9 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Czech business students rank Google top, and Microsoft as the fifth, most attractive employers, with local hero Skoda and public service taking 2nd, 3rd and 4th slots

Most popular employers, Czech business students, 2015

Google 27.3%

Škoda Auto (Volkswagen Group) 15.9%

Česká národní banka 15.4%

Státní správa (ministerstva, úrady) 15.4%

Microsoft 12.3%

Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers.”

10 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Generali-owned Česká pojišťovna is the most popular insurer but banks took four of the top five most popular slots among insurance-inclined students

Most popular employers, Czech insurance-inclined students, 2015

Česká národní banka 32.7%

KBC Group 23.9%

Société Générale 20.4%

Erste Bank Group 19.5%

Česká pojišťovna 19.5%

Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers.”

11 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Worryingly for insurers, the desire to be innovative fell by 12 percentage points in popularity among Czech insurance-inclined students between 2014 and 2015

Career goals of Czech insurance-inclined students, 2014-2015

70.3% To have work/life balance 61.5%

64.9% To be secure or stable in my job 68.1%

46.8% To be dedicated to a cause or to feel that I am serving a greater good 32.6%

26.1% To be autonomous or independent 26.7%

24.3% 2015 To have an international career 25.2% 2014

21.6% To be entrepreneurial or creative/innovative 33.3%

18.9% To be a leader or manager of people 33.3%

14.4% To be competitively or intellectually challenged 10.4%

10.8% To be a technical or functional expert 7.4%

Survey question: “Below is a list of nine possible career goals. Which are most important to you? Please select a maximum of 3 alternatives.” Importance of goals is then calculated as the percentage of students choosing each career goal on their shortlist of top three goals.

12 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Czech insurance-inclined students aspire to a ‘friendly work environment’, ‘market success’, and ‘professional development’ and expect to find them in the sector

Czech insurance-inclined students‘ top 10 aspirations and expectations, 2015

Top 10 aspirations Top 10 expectations

A friendly work environment 1st Client interaction 1st

Professional training and Market success 2nd 2nd development Professional training and 3rd Market success development 3rd

Good reference for future career 4th Financial strength 4th

Flexible working conditions 5th Good reference for future career 5th

High future earnings 6th High level of responsibility 6th

Prestige 7th A friendly work environment 7th

Secure employment 8th Competitive benefits 8th

A creative and dynamic work 9th environment Corporate Social Responsibility 9th

Financial strength 10th Respect for its people 10th

Students were asked to choose up to 12 attributes, out of a total of 40, that they most sought for their five shortlisted “ideal employers.” The ten attributes that scored most highly for insurance-inclined students are shown in the green bars – “aspirations”. Deloitte extracted the extent to which insurance-inclined students expected to find each of these top ten aspirations in their shortlisted “ideal” insurers. Each blue bar represents the proportion of insurance-inclined students who expect to find this attribute at the insurer(s) that appears on their shortlist of five “ideal employers”. Please note that because the number of aspirations students can choose is capped at 12, while the expectations are uncapped up to 40, the proportions of students expecting a particular attribute is likely to be higher those recording an aspiration for that attribute. Survey question: Aspirations – which of these are most important to you? Please select a maximum of three alternatives [in each of the following four categories: Employer Reputation and Image; Job Characteristics; People and Culture; and Remuneration and Advancement Opportunities. Expectations – which of the following [40 attributes] do you associate with your chosen employer(s).

13 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Czech insurance-inclined students’ salary expectations are 8.8 per cent lower than those of all business students, and 7.4 per cent below the banking-inclined

Expected annual salary (EUR), Czech business students, 2015

All Business €10,555

Banking-inclined €10,401

Insurance-inclined €9,629

Survey question: “What is your expected salary before taxes (excluding commission and bonus) at your first employment after graduation?”

14 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Czech insurance is doing a very good job of attracting women, who are considering it in a greater proportion than their share of the business student body

Students demographics, globally, 2015 Student demographics, Czech Republic, 2015

All business All business (Global) 67.5% 32.5% 61.1% 38.9% (Czech Republic)

11.1% drop off 8.9% increase

Insurance-inclined Insurance-inclined 54.3% 45.7% 73.5% 26.5% (Global) (Czech Republic)

Female Male Female Male

16 © 2015 Deloitte LLP. All rights reserved. Appendix – Methodology This report is based on the Universum Talent Survey 2015. Universum has been researching students’ career intentions since 1988. In 2014-15, it surveyed about 1.2 million students and professionals drawn from over 2,000 universities and institutes of higher education in 55 countries.

Deloitte examined the survey results from 211,000 business students in 30 markets: in the Americas, Brazil, Canada, Mexico and the US; in APAC, Australia, China, Hong Kong, India and Singapore; and in EMEA, Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Middle East (defined by Universum as Egypt, Lebanon, Kuwait, Qatar and Saudi Arabia), the Netherlands, Norway, Poland, Russia, South Africa, Spain, Sweden, Switzerland, Turkey, the UAE and the UK. The number of markets included in global and regional averages varies between 23 and 30.

Business students were presented with a list of employers from a range of industry sectors. Students selected “ideal employers” from the initial list in a three-stage process. First they chose an unlimited list of companies for which they might consider working. Next they narrowed the choice to a maximum of five “ideal employers”. Finally, they were asked to select companies they had applied to or were considering for an application.

Using the rankings by business students of the companies they would most like to work for, their “ideal employers”, Deloitte analysed their preferences across different industries over the eight academic years from 2007-08 to 2014-15. For this survey, business students are defined as students of business-related subjects. “Insurance-inclined students” are a subset who put at least one insurer in their top five “ideal employers”. Using Universum’s detailed questionnaire, Deloitte analysed the motivations, aspirations and expectations of insurance-inclined students in relation to a career in insurance. This analysis includes a comparison of what makes insurers attractive to students (“aspirations”) with what they associate with insurers as employers (“expectations”).

17 © 2015 Deloitte LLP. All rights reserved. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

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