Consumer Protection on the Hungarian Insurance Market Brief - - PowerPoint PPT Presentation

Association of Hungarian Insurance Companies

Consumer Protection on the Hungarian Insurance Market

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• 64 insurance undertakings consisting of:
• 27 insurance companies
• 15 branch offices of insurance

undertakings based in other member states

• 22 mutuals and mutual-type undertakings
• 33 MABISZ-member undertakings
• 25 companies
• 6 branch offices
• 2 mutuals

Brief Overview of the Hungarian Insurance Market

• 654 insurance undertakings based in other member states registered by the

Hungarian National Bank in the framework of cross-border services (FOS)

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• Legal background: insurance law, regulations,

recommendations of the National Bank

• Supervisory authority: National Bank of Hungary
• Supervision of banking and insurance sector
• Financial Mediation Body (PBT)
• Financial Consumer Protection Centre
• NGOs
• Insurance Association (MABISZ)

The System of Consumer Protection in the Hungarian Insurance Sector

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• Two independent branches
• Association / Motor Insurance Bureau
• Regulated by the MTPL law

Organizational Structure and Functioning of the Association

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• Contact Center
• Call center and customer service
• Handling of complaints regarding insurance companies –

mediation

• Effectiveness:

The Role of MABISZ in Consumer Protection

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The Role of MABISZ in Consumer Protection

• „Premium Navigator” aggregator website
• the only complete online calculator
• With consent of the competition authority
• Unit-linked Total Cost Indicator (TKM)
• Unique solution in Europe
• enables the comparison of unit-linked life product costs
• Will be considered in the PRIPS preparatory works
• Standardized GTA structures in household insurance products
• Cooperation with authorities
• National Bank
• Police
• Undersecretary of State for Consumer Protection (Ministry of National Development)
• Participation in legislation preparative works
• „Consumer Friendly Insurer” Award
• Code of Ethics and Competition

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Key Problems in Consumer Protection in Financial Services in Hungary

• Foreign currency mortgage credit

products

• Recent bank and insurance company

insolvencies

• Claims handling
• claims management companies, lawyers
• Ukraine crisis
• May affect international claims handling
• FOS/FOE activities
• potential problem
• supervisory gaps
• Data protection
• data exchange

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Thank you for your attention!