In the fourth quarter of 2022, the average MTPL premium for passenger cars increased by 8% compared to the same period in 2021. Claim expenses increased by 13% as a result of rising service and spare parts costs and changes in the exchange rate, according to the MNB's latest KGFB index, portfolio.hu wrote.

At the end of last year, the average premium for compulsory motor vehicle liability insurance for passenger cars was HUF 47.3 thousand, which indicates an increase of 1% compared to the previous quarter according to the latest quarterly KGFB index of the National Bank (MNB). On an annual basis, the national average premium increased by 8%.

Claim expenses rose by 13% mainly due to the more intensive vehicle use after the coronavirus period (more damage incidents due to increased vehicle traffic), an increase in the price of service and spare parts, and the change in the exchange rate.

As a result of the slightly increasing premiums and the higher rate of claim expenses, the MNB's adjusted KGFB index for passenger cars (net change in premiums adjusted for the insurance tax and the impact of claim payments and reserves) changed only slightly. The adjusted index was at its peak in the first quarter of 2021, since then it has mostly decreased, and in the fourth quarter of 2022 returned to the pre-pandemic level. This index is used to measure justification of price changes, the source said.

*EUR 1 = HUF 399.72 (31.12.2022)