Hungary: July's storm bill could reach EUR 29 million

2 September 2021 — Daniela GHETU
Following the storm in July, Hungarian insurers have already paid out reserved, by mid-August, nearly HUF 10 billion (~ EUR 29 million) for claims. Only claims paid for home insurance exceed the total amount of claims for the storm season between May and August of 2020, the Association of Hungarian Insurers (MABISZ) has said.

In the wake of the storms in July, nearly 50,000 claims were received by insurers. Based on these, the amounts already paid or placed in reserve reach almost HUF 5 billion. The impact of the stormy month of July 2021 exceeded visibly similar past situations. In 2019, for example, the total household claims paid during the storm season between 1 May and 31 August did not exceed HUF 4.1 billion, while throughout the entire year 2020, it reached HUF 6.6 billion. Except for the flood-stricken 2010 of the last decade (when companies paid HUF 30 billion for claims exceeding three hundred thousand), the account stood at around HUF 8 billion in the worst years. This year, the five billion in July will be added to the more than two billion May-June period.

The burden on insurers is compounded by the fact that nearly two and a half thousand claims were received from industrial facilities and institutions, amounting to about HUF 1.5 billion. The hailstorms of the first half of July also caused blatant damage to motor vehicles. Just over one million car owners have a Motor Hull policy, which is less than 20%. Yet, based on these contracts, 6,600 claims were reported, for the payment of which the companies formed a reserve of more than HUF 3.2 billion, MABISZ explained.

Taking all this into account, the storm bill in July is approaching ten billion forints. This summary does not yet include the first week of August's storm data as well as damage to agriculture.

Damage reports are in most cases related to hail, the secondary induction effect of a lightning strike (when a nearby heaven destroys computer and entertainment electronic devices or household appliances), soaking, lightning floods, and windstorms.

Currently, according to MABISZ data, about 25% of the Hungarian properties, more than a million homes, have no insurance coverage, which places Hungary among the CEE countries with the best insurance coverage against risks related to real-estate property.


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