It will be organized in Esztergom on Tuesday and Wednesday XX. The Hungarian Association of Independent Insurance Bargaining Associations (FBAMSZ) holds its insurance professional conference and exhibition. At the beginning of the event, a senior representative of the FBAMSZ, the Hungarian National Bank (MNB) and the Ministry of National Economy (NGM) each gave a presentation. It has been said: next year, the government will announce the home insurance campaign uniformly with an insurance deadline of April 30, and the extra profit tax of the insurance companies of around HUF 100 billion may be reduced by at least HUF 50 billion in 2025. Next year, the ability to tap into long-term savings for housing purposes will only apply to voluntary pension funds. Meanwhile, the transition to life insurance practices aimed at greater customer value in accordance with the MNB’s ethical 2.0 concept is already taking place. More details on this:
MABISZ: let’s leave ethical 2.0 as long as there is extra profit tax!
Bence Holló, of the Association of Hungarian Insurers (MABISZ) in the presentation of the vice-president, he spoke about how the premium income of the insurance sector has risen far below inflation in recent years, the contract portfolio is growing only slowly, while claims expenses are growing dynamically, and the margin is narrowing. Similar to two years ago, serious damage was inflicted on agriculture this year, and the difficult years that have intensified as a result of climate change clearly show the challenges the sector is facing. The sector was also affected by flood damage this year, the total figures for which are not yet available.
Bence Holló spoke in detail about the extra profit tax: since its introduction in 2022, the sector’s profitability has decreased by a quarter (from HUF 83 to HUF 23 billion), the economic profit of the sector has turned negative (-11%). The burden of the insurance sector significantly exceeds the level of the banking, telecommunications or vehicle sectors. The basis and level of the tax also make the business model of some products (e.g. savings-type life insurance, casco) impossible. In Europe, the insurance extra profit tax was introduced only in our country, in several neighboring countries there is no tax on insurance premiums.
MABISZ prepared a detailed study and recently sent its consensus proposals to the Ministry of National Economy for the tax reduction linked to the purchase of government securities.
MABISZ members already paid HUF 123 billion in insurance tax and HUF 88 billion in extra profit tax last year. Insurers also have a request for the MNB: brought forward by the central bank
the introduction of the ethical 2.0 life insurance concept is not considered timely by insurers as long as the extra profit tax remains in any form.
While the premium income of life insurance has fallen significantly in recent years due to the impossibility of profit generation of single-premium life insurance, pension insurance continues to represent a safe point and shows growth. campaign is planned.
He said about the home insurance campaign: “when the music is playing, you have to dance.” For insurers, the decrease in profitability is not a completely positive development, but for customers, the campaign brought many good developments: the insurance level increased, market concentration decreased, and the ratio of premiums and services improved, for example.
MABISZ participates in many professional collaborations: in addition to the home insurance campaign, the development of education and training, progress can also be made in the damage history certificates of motor vehicle fleets and the inheritance of insurance contracts.
We succeeded in moving to sector-level cooperation
In a panel discussion on the future of insurance brokers led by FBAMSZ president Lajos Papp managers from insurance companies emphasized the importance of personal sales, which will continue in the future even with digitalization.
The broker of the future is prepared, aware of his profession, the functioning of the market and insurances, and also creates a customer experience, which also requires products that create this experience as soon as possible. At the same time, insurance companies have a lot of work to do before they succeed in making insurance management experience-like, which in itself is not a very enjoyable activity.
It was said in the conversation: the regulators used to operate quasi-autonomously, and did not necessarily make rules that brought about the development and growth of the market. Today, this has changed: it has been possible to establish forward-looking cooperation spanning the entire insurance sector with the participation of interest representative organizations of regulators, insurers and intermediaries.
A big challenge for brokers is the aging of the profession and the involvement of young people. In this field, the participants expect progress primarily from the training.
Cover image source: Portfolio
Source: www.portfolio.hu
