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Insurance sector nears a turning-point

The amount of damage compensations has doubled on the non-life insurance market in the past decade while the number of insurance contracts rose only to 2.5 million from the former 2 million, business daily Napi Gazdaság reported.

Also, insurance fees have remained the same since 2003, the paper added. As a result, existing insurance contracts have become under-secured, too, deputy general manager of Aegon András Vereczki said. If the government would let insurance companies operate in the health sector, the state budget could earn much more than the HUF 38 billion gained through the extra tax levy, Union Biztosító CEO Miklós Zsoldos said.

Head of insurance association Mabisz and Allianz CEO Péter Kisbenedek also said that future issues have to be reconsidered as the extra tax has pushed the entire sector into the red. Also, the insurance sector has been able to raise its real income from HUF 152.7 billion only to HUF 298 billion since 1996, he added.