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Insurers offer incentives for long-term savings in exchange for supportive regulatory environment

Insurers will provide Hungarians with incentives to make long-term savings if the government creates a supportive regulatory environment for the sector, Hungarian Insurers Association (MABISZ) chairman Péter Kisbenedek said on Wednesday.

Insurers' revenue from premiums in Hungary is 3.2% of GDP, half of the ratio in Austria, Kisbenedek said, speaking at a MABISZ conference. The number of underinsured Hungarians could be reduced if the state introduces tax preferences or exemptions, he added.

Hungarian insurers' hold HUF 1,000bn of government securities, well under the more than HUF 1,200bn in 2007, Kisbenedek said. If the insurance market picks up, insurers could buy more securities, providing a source of financing for projects such as the construction of rental flats, he added.