The subsidized agricultural insurance program, initiated by Hungary’s Ministry of Agriculture, completed its thirteenth year in 2024, the year-end results highlighting the continued reliance on government support within the sector. This program allows farmers to receive up to 70% reimbursement on eligible premiums. In December 2023, nearly HUF 14 billion in insurance premium subsidies were approved for over 23,000 farmer applications, demonstrating the program's significant reach and impact.
While the Ministry’s agricultural damage mitigation system plays a crucial role, producer-driven risk management through private insurance remains vital. This approach helps mitigate the increasingly severe effects of weather and other natural hazards.
The crop insurance segment continued to dominate the market, accounting for 87.9% of total premium income. However, livestock insurance gained some ground with a 1.9% increase, and property and liability insurance also rose by 10.1%. In contrast, forest insurance remained marginal.
The broader Hungarian insurance market experienced notable trends in 2024. The non-life insurance sector saw a 19% increase in paid claims, with property insurance claims rising by 35.6% due to repeated extreme weather events. The average storm damage now exceeds HUF 120,000, which is 20% to 40% higher than in previous years.
These developments underscore the importance of both state-supported and private insurance mechanisms in safeguarding Hungary's agricultural sector against evolving risks.
1 EUR = 410.09 Forints - HUF (December 31st, 2024)
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