Insurers comply with Orbán cabinet request to freeze home policy premiums, minister says inflation will fall
A number of Hungarian insurers have said they would comply with a request by the government to cap premiums on home policies in an effort to keep inflation down.
The insurers committed to freeze premiums on new home policies at end-2024 levels for a period of twelve months starting July 1. They also pledged to limit premium increases on existing policies to the rate of inflation for annual terms ending in the twelve months starting July 1.
Allianz Hungaria, Alfa, Union, UNIQA and CIG EMABIT were among the insurers who said they would comply with the government request.
Several insurers pledge premiums freeze
Several insurance firms have announced that they will be freezing premiums on home insurance policies in response to a request from the National Economy Ministry. Allianz Hungaria said that for new home insurance contracts signed by private individuals with a risk bearing start date between July 1, 2025 and June 30, 2026, the premium of the contracts will not exceed the premium level in force at Allianz on December 31, 2024, provided that the conditions remain unchanged, until June 30, 2026.
Allianz said that premiums of existing home insurance contracts concluded by private individuals will not be increased for a year from the insurance due dates falling between July 1, 2025 and June 30, 2026, provided that the insurance coverage remains unchanged. Alfa Insurance also indicated that it would join the voluntary commitment of home insurers, making similar pledges.
UNION Biztosito said that the premium level of the new UNION Home Insurance and UNION Ertem contracts concluded with the start of risk bearing between July 1, 2025 and June 30, 2026 will not exceed the premium levels of December 31, 2024 until June 30, 2026, provided that conditions remain unchanged.
Premiums of existing contracts concluded by private individuals with UNION will not increase for one year from the insurance due date falling between July 1, 2025 and June 30, 2026, provided that insurance coverage remains unchanged, while the insurance amounts will increase according to the value tracking specified in terms and conditions.
National Economy Minister Márton Nagy, in a Facebook post, said that there were unfounded price rises in Hungary, the government would stand up against them, and that is how the inflation would recede.
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