At the end of the 2Q the average MTPL annual premium for passenger cars rose by 10% y-o-y to HUF 57,000 (~EUR 144.44). This also indicates an increase of 1.6% compared to the previous quarter's value, according to the Magyar Nemzeti Bank (MNB), Portfolio.hu reports.

The annual increase in claims costs continued (4%), but stagnated on a quarterly basis, which means that the growth rate of claims costs has been lower than that of premiums for five quarters already, and it is expected that this will moderate the increase in premiums in the coming quarters.

The MNB's corrected KGFB-index for passenger cars (which is used to measure the justification of price changes and shows the net change in premiums adjusted for insurance tax and the effect of claims payments and reserves) stands at 133%, showing a smaller increase in the second quarter. The index was at its peak in 1Q2021, and is currently at the pre-pandemic level.

*EUR 1 = HUF 394.62 (as of June 30)