HUNGARY: last year agricultural claims were 45% higher that agricultural premium income

3 May 2023 —
Several insurance companies had to cancel their previous contracts after the record paid claims due to the last year's drought, according to the Hungarian Association of Independent Insurance Bargainers (FBAMSZ) , wrote.

In 2022, insurance companies paid out nearly HUF 52.9 billion (~EUR 0.13 billion) on agricultural claims, which is 45% higher than their agricultural premium income of HUF 36.4 billion.

At the same time, this year marks the 12th year that producers can benefit from the insurance fee subsidy. Farmers can choose subsidized agricultural insurance from four insurance companies (Allianz, Generali, Groupama, and Agrar Biztosito).

Experts note that numbers clearly show success of premium subsidies for agricultural insurance: four years ago, the amount allocated for this purpose was HUF 5 billion, and this year the Ministry of Agriculture has increased it to HUF 14.3 billion.

Yet, there is still room for improvement: according to statistics, only 45% of domestic farmers have some kind of agricultural insurance, and about 40% have market insurance coverage for drought damage.

*EUR 1 = HUF 399.72 (31.12.2022)