Bill would allow transfer of insurance association Dimenzio clients

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Hungaryʼs government has submitted an amendment to lawmakers that would allow contracts held with troubled insurer Dimenzio to be transferred to another institution, the National Economy Ministry said yesterday, according to Hungarian news agency MTI.

Alleging “capital problems” and “shortfalls related to the registry of assets”, the National Bank of Hungary put an oversight commissioner in charge of Dimenzio earlier this month.

“Thanks to the proposal, the pension savings of clients of Dimenzio Association can be transferred to a system that operates according to modern rules, instead of an obsolete, unsustainable financial product,” the ministry said.

The bill could affect “about 60,000 contracts” held by “tens of thousands” of people and managed assets of “more than HUF 40 bln”, the ministry said.

Dimenzio only has 0.7% of the domestic life insurance market, with “some tens of thousands” of clients, MTI reported.

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