Following an audit of nearly four years in length, the National Bank of Hungary (MNB) imposed a HUF 20 million oversight fine and a HUF 30 mln consumer fine on insurer K&H Biztosító, charging the firm with infringements related to operating procedures, the content of insurance policies, and client information and complaint management, Hungarian news agency MTI reported today.
The central bank also instructed the insurer to comply with regulations, MTI added.
Following a “comprehensive audit”, which the MNB said was conducted as of October 25, 2012, a large number of shortcomings were revealed, MTI reported. The MNB said that, given the number of problems, and the insurerʼs weight on the market, the size of the fine was justified, according to MTI.
The company is scheduled to report on measures taken for the shortcomings and remedy the infringements, until September 30, the central bank said.
Following the MNB’s announcement about the fine, the insurer told MTI that it would be studying the resolution by the central bank. K&H added that it wishes to proceed in line with the regulations in force at all times.