MNB certifies first ʼconsumer-friendlyʼ home insurance policies

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The National Bank of Hungary (MNB) on Thursday said it issued its first "consumer-friendly" certification for home insurance products to policies of Union Biztosító, state news wire MTI reports.

MNB recently expanded its consumer-friendly certification system, introduced two years ago for home loan products, to home insurance policies.

Insurers could apply for the certification for home policies starting in January.

The central bank has stipulated strict conditions for the new consumer-friendly home insurance policies regarding the processing of claims, informing policyholders and modifying premiums. It also specifies minimum standard features for basic insurance services as well as auxiliary services, ensuring policies that are of high quality, easy to compare and easy to customize.

In an important change to current practice, consumers will have the option to cancel these insurance policies on a quarterly, rather than an annual, basis.

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