Insurers expect 5-10% of life policies to be liquidated because of early FX repayment scheme – Napi Gazdaság

History

Hungarian insurers expect just 5-10% of life insurance policies to be liquidated by borrowers who want to avail of an early foreign currency-denominated mortgage repayment scheme, Hungarian Insurers Association (MABISZ) head Péter Kisbenedek said in Wednesday's issue of business daily Napi Gazdaság.

Under the government-authored scheme, borrowers may repay their forex mortgages in a lump sum at a fixed rate discounted from the market rate.

A bigger problem for the insurance sector than the one presented by the early repayment scheme is the question of getting people to start make savings again, Kisbenedek said. The government ought to offer a single subsidy for different kinds of long-term savings, giving clients a choice of products, he added.

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