The initiative, backed by the Hungarian National Bank (MNB) and the Ministry of National Economy (NGM), is designed to enhance market competition and encourage consumer-friendly insurance choices. Beyond potential cost savings, the campaign highlights the importance of comprehensive home protection, especially in light of rising property values and increasing climate-related risks.
The annual home insurance campaign runs from March 1 to March 31, providing homeowners a unique opportunity to switch to a more favorable policy regardless of their contract’s renewal date. With a competitive market offering a wide range of insurance products, it is crucial for policyholders to review their existing agreements and explore better deals. The MNB and the NGM have launched an informational campaign to assist homeowners in making informed decisions.
Speaking during a joint press conference with the MNB, State Secretary for Public Administration Anikó Túri of the NGM emphasized that the initiative is designed to protect homeowners and ensure that families secure the best coverage for their most valuable asset: their home.
Many insurance companies have introduced new, more competitive offers, making it an opportune time for policyholders to compare options. Túri specifically encouraged those who do not yet have home insurance to explore the market, as insurers are now providing highly favorable conditions.
The impact of the home insurance campaign has already been measurable in previous years. Deputy Governor of the MNB Csaba Kandrács recalled that, during the first home insurance campaign, 640,000 contracts were renegotiated. Of these, 300,000 customers reviewed their policies with their existing insurers, while a similar number opted to switch to a different provider.
Kandrács highlighted that the primary goal of the initiative was to enhance market competition rather than simply lower prices. The figures suggest that this goal has been successfully achieved. Instead of an all-out price war, the campaign has led to an improvement in the value-for-money ratio of insurance products.
A growing number of policyholders are opting for so-called consumer-friendly home insurance (MFO) policies, which offer high service quality and transparent conditions. In fact, one in three online home insurance contracts now fall into this category.
Last year, nearly 900,000 home insurance contracts were renewed, demonstrating the campaign’s growing effectiveness. Approximately one in four policyholders reviewed their coverage, highlighting an increased awareness of available options.
The home insurance market has remained highly concentrated, with premiums increasing by 16% on average. While some concerns were raised about potential market shrinkage due to rising premiums, the opposite occurred: the total volume of home insurance policies expanded slightly.
The number of insured properties in Hungary also increased slightly, rising by 0.5 of a percentage point to 76.42% of all residential buildings. This suggests that more homeowners recognize the importance of securing financial protection against unexpected damages and losses.
Looking ahead, the central bank and the economy ministry anticipate that insurers will invest billions of forints into this year’s campaign, a sign of its growing importance in the industry. They expect around 155,000 new contracts to be signed, with 17% of them being MFO policies.
The MNB has prepared a nationwide communication campaign this year to enhance awareness further, encouraging policyholders to review their contracts and take advantage of better insurance terms. The central bank is placing particular emphasis on MFO policies, which guarantee high-quality services and fair conditions. At the same time, the MNB says it expects insurance companies to communicate transparently and maintain fair competition throughout the campaign.
Another significant objective is to increase awareness among uninsured households. Currently, around one million Hungarian households lack any home insurance, leaving them vulnerable in the event of natural disasters, fire, burglary, or other property damage. By highlighting the advantages of home insurance, the campaign aims to reduce the number of uninsured properties in the country.
The insurance industry actively prepared for this year’s campaign. Key stakeholders, including individual Hungarian insurance companies, Mabisz (the Association of Hungarian Insurance Companies), the NGM, and the MNB, recently gathered for a roundtable discussion to address the most pressing issues affecting the home insurance sector.
Participants at the meeting confirmed that both insurers and the MNB have developed extensive communication plans to ensure policyholders are aware of the opportunities available during the March home insurance campaign.
Market players say they are eager to stimulate competition within the sector further. The upcoming “Ethical 2.0” regulatory package is expected to introduce a wave of new product innovations, significantly improving the value-for-money ratio in the entire Hungarian insurance market.
This article was first published in the Budapest Business Journal print issue of March 7, 2025.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
