Study: Lower risk for Hungarian insurers

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In a quantitative impact study on conforming to the Solvency II Directive, the National Bank of Hungary (MNB) found among Hungarian insurers a "significantly lower degree of risk compared to pan-European exposure, both for the market as a whole and for individual insurers", the central bank reported yesterday, adding that “Hungarian insurers should have little trouble conforming to a European Union directive harmonizing regulation in the sector”.

According to the study, just 13% of insurers would need special oversight to conform to the new rules, but these companies account for just 1% of the sector's assets. Participants for the study were chosen on a voluntary basis, however MNB believes it reflects approximately 85% of the market. The study was conducted at the same time as the European Insurance and Occupational Pensions Authority (EIOPA) carried out stress tests on insurers across the EU. Insurers are expected to comply with the Solvency II Directive from 2016.

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