CZECH REPUBLIC Law and Practice Contributed by: Eva Nováková, Michaela Šmotková, Martin Sztefek and Kateřina Chizzola Bardonová, JŠK, advokátní kancelář, s.r.o.
bution, contract management and claims handling. These efforts are, however, subject to several legal and practical constraints. In particular: • the obligation to maintain a non-discriminatory approach towards customers who require paper documentation as a reliable alternative to electron- ic communication; • the requirement for the insurance contracts con- cluded for a period exceeding one year to be made in writing (this requirement may be satisfied through the use of an electronic signature compli- ant with the EU eIDAS Regulation); and • the provision of all mandatory information and records of meetings to customers on a durable medium. Another area of sustained interest is the develop- ment of remote client onboarding and digital distribu- tion, notably through co-operation with comparison websites and online intermediaries. In some cases, insurance products are embedded into non-insurance digital platforms and offered as an ancillary or com- plementary element of a broader service (for example, rental-related coverage or event- and transaction- based insurance). Nevertheless, the mass develop- ment of these methods remains quite limited due to strict local AML regulation, especially due to specific rules on usable methods of client identification. In response to recent advances in artificial intelli- gence, insurers are increasingly seeking to integrate AI-based solutions into their internal processes. Typi- cal use cases include data-driven risk assessment and underwriting, contract administration, more efficient claims handling (for example, verification of uploaded documentation), fraud detection, and the use of chat- bots or voicebots in customer communication. The deployment of such solutions must, however, comply with applicable regulatory frameworks, including the EU regulations AI Act, DORA and GDPR. Further innovation can be observed in the use of data to refine premium calculation and offer behaviour- based incentives. Examples include the collection of data from smartphones or wearable devices to adjust life insurance premiums based on physical activity, as well as mobile applications monitoring driving behav-
iour in order to grant discounts on motor insurance premiums. Certain insurers have also experimented with IoT-based solutions, such as water-leak detec- tion systems, with the aim of preventing losses and reducing claims. In 2025, the Czech Insurers’ Bureau launched the Bouračka web application, which dig- itises the reporting of minor traffic accidents as an alternative to traditional paper forms. 10.2 Regulatory Response The CNB has not introduced a dedicated regulatory regime for insurtech. Business models are assessed under existing insurance legislation, and any entity conducting insurance or distribution activities must be registered with the CNB (exemptions are described in 5.1 Distribution of Insurance and Reinsurance Prod- ucts ) and comply with all regulatory requirements. Insurers or intermediaries using third-party technol- ogy providers remain fully responsible for compliance, including outsourcing and ICT risk management under the DORA Regulation. Customers must be able to request paper documentation, and electronic records must meet EU eIDAS timestamping standards. The CNB promotes innovation through its fintech contact point (2019) and the CNB Lab launched in November 2025, focusing on AI, digitalisation, data science. CzechInvest operates a fintech sandbox, but these initiatives are not insurtech-specific. The Czech Insurtech Association also plays a significant role in shaping the insurtech ecosystem. It provides consul- tation, organises events and training, and facilitates dialogue between insurers, startups, regulators and the public. The market emphasises digitalisation, automation, personalised products, and risk assessment, while facing challenges such as restrictive regulation and IT infrastructure adaptation. 11. Emerging Risks and New Products 11.1 Emerging Risks Affecting the Insurance Market The Czech insurance market is increasingly influenced by technological, environmental, and demographic developments. Cyber risks remain one of the most
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