HUNGARY: NN enters the non-life insurance market

24 February 2020 — Cosmin CONCEATU
NN officially announced its entrance in the Hungarian non-life insurance market. The company plans to offer three non-life types of products which will widen its product portfolio.

For now, NN Hungary will launch the following non-life product groups:
  • Payment protection insurance - distributed by banking partners; if a client cannot pay his or her debt due to a concrete reason (job loss, becoming ill or disabled, etc.) the insurance will ensure the payment in line with the contract;
  • Home insurance - to be provided through banking partners, sales network and online channels (as of mid-2020);
  • Travel insurance (as of 2021).

At the end of the third quarter of 2019, for nine months ended, the Hungarian insurance market portfolio was composed of 43.1% life insurance, 18.4% property insurance and 1.5% travel insurance, according to the latest MNB figures. Property insurance is currently the second most voluminous business line from Hungary (after MTPL).

"New regulation from the Hungarian National Bank gives NN further motivation and opportunity to enter the home insurance market. New requirements and minimum standards have been designed to serve the spread of uniform, comparable and customer-friendly home insurance services," the company stated.

The new regulation will ease the process for clients in information gathering and decision making, and strengthen their mobility by allowing them to change home insurance provider on a quarterly basis (currently, clients can change home insurance only on the anniversary of their contract).
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