Uniqa CEO Havran: fear of the future hits Czech economy and births

Rastislav Havran, CEO of the Uniqa financial house, warned at Forbes’ “Best Czechia” conference that Czechs’ sense of security and stability is declining, and that this is already affecting the economy, the birth rate and financial decisions.

Drawing on a study commissioned by Uniqa, Havran cited alarming figures: 80% of Czechs fear a global military conflict. Many worry that the war started by Russia in Ukraine will reach Czechia too. According to him, natural disasters have been added to the fear of war – tornadoes and floods in Moravia, annual droughts. Anxiety, he stresses, shapes the decisions people make, both in finances and at work.

This is especially visible in demographics. Last year about 77,600 children were born in Czechia – the fewest since the days of Maria Theresa, when such records began to be kept in this territory. Expensive housing and mortgages, Uniqa found, are not the main reason young people put off starting a family.

According to the study, 60% of families fear the world their children will come into. The same share of people don’t want children because of fear of the future. In second place is the worry about losing freedom, and only third come money and unaffordable housing. “To kick-start the birth rate, we must first ask what to do so that families can see a future in a more positive world,” Havran believes. One step he names is supporting mental health care.

The decline in births will hit the economy too: there will be fewer people of working age, while the number of seniors by 2050 may be around 3.2 million – a million more than today. The question arises of who will look after them. “Already today 20% of families care for a frail relative,” Havran reminded the audience.

Uniqa is answering this challenge with investment: the company has pledged to invest more than CZK 5 billion in Czechia and to build about two dozen senior homes with 2,500 places. Three are already finished. Interestingly, up to 60% of Czechs don’t mind being cared for by a robot or artificial intelligence. Havran also pointed to long-term care and reduced self-sufficiency insurance, which makes it possible to pay for professional help for loved ones.

“A better and more sustainable society is one where we have a positive outlook on the future, where families aren’t afraid to have children and where we know our parents will be helped,” the head of Uniqa concluded.

By the Around Prague newsroom