HUNGARY: MNB asks insurers to review the MTPL tariffs

23 September 2020 — Andrei Victor
The Central Bank of Hungary (MNB) intend to change the premiums paid by customers on MTPL insurance (kgfb in Hungarian) by January 1, 2021. About a week ago, it calls local insurers to review the tarrifs taking into account the "kgfb database" which has been accessible to insurers now for three quarters.

Thus, the Hungarian Central Bank expects from MTPL insurers the premiums to be calculated on statististcs even from market players without their own databases and informed that it will not accept lack of data as justification for increasing premiums on clients.

"The kgfb database operated by MNB provides a sufficient statistical background on contracts and claims starting 2011 for all market players in order to establish reasonable tariffs", MNB informed in a statement avialable here.

"Excessive tarrifs, which are even two to three times than the MTPL base fee, are also considered to be a bad practice, detached from damage statistics. This is because they can override the risk-based tarrif calculation and can affect the bonus-malus system".

Thus, MNB called on MTPL insurers to review their tarrifs and, if necessary, to amend them so that they comply with the mentioned principles from 1 January 2021. MNB announced it will start to check the MTPL fees after a six month grace period, from July 1, 2021.

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