The Hungarian branch of ACE European Group Limited will assign its portfolio of unemployment insurance as of January 1, 2010 to April Cee Development, though ACE will still pay unemployment insurance in 2010 to company clients who have lost their jobs this year, managing director of internet brokerage site biztositas.hu István Rácz told MTI.
Kossuth Radio reported that ACE is to withdraw from the Hungarian market, informing its clients of this decision in a letter.
Biztositas.hu has sold ACE's unemployment insurance since the spring of 2008, but has not signed any new contracts on behalf of this company since the summer, though the company has since been selling a similar product offered by April Cee Development, Rácz said.
ACE indicated when it entered the market that it will cover the risk until unemployment reaches 10%, but the unemployment rate in Hungary has now exceeded this level.
ACE therefore terminated the contracts one month before the insurance maturity date of December 31, as stipulated by the insurance act. The broker also informed clients by email, and they can move their policies to April Cee Development under similar terms, without interruption. The only change in terms will be that April Cee Development will not pay for dismissals by mutual consent. ACE's experience shows that three-quarters of the job losses were mass lay-offs. (MTI-ECONEWS)