New president of Hungarian insurance association talks about urgent steps, extra profit tax
Bence Holló, the head of NN Insurance, was recently elected as President of MABISZ. He aims to represent both continuity and change in the sector's operations. He stressed that his predecessor's three-year term coincided with a turbulent period that required significant firefighting, but Holló hopes the turbulence will subside to focus on long-term strategic goals.
The government recently announced that the insurance sector's extra profit tax will be kept in place even in 2026, with part of it remaining deductible through government security purchases.
Our main message was that the insurance sector does not have the same potential to buy government securities as the banking sector, so we cannot buy the same amount of government securities as credit institutions. In the end, the government accepted 80-90% of what we proposed as a compromise.
The Economy Ministry has taken a firm stance on this matter, though details are still under discussion.
The ministry has also initiated talks with insurers about their role in fighting inflation. While negotiations are ongoing, Holló refrained from sharing specifics but expressed hope for finding a "mutually acceptable solution".
Regarding sector dynamics, Holló noted the complexity arising from diverse business models among insurers, making compromises challenging. However, he emphasised the importance of "deepening trust between market players for unified action on fundamental issues."
Looking at market segments, Holló identified several areas requiring attention: the declining penetration in the casco insurance market, the need to increase risk life insurance penetration through education, and uncertainty surrounding the future role of health insurance in healthcare financing.
Casco insurance covers conditional damage, which can be, among others, self-inflicted, caused by natural forces or by an unknown person.
Premium income in the insurance market increased by 12.4% last year, partly due to indexation following the high inflation of the previous year. In terms of market growth, Holló suggested that
double-digit growth could be achievable, but only barely, this year,
driven by single-premium life insurance products, which have become profitable again following the changes to the extra profit tax. He also expects growth in health insurance, motor third-party liability insurance, and home insurance sectors.
On the second home insurance campaign, Holló indicated lower activity compared to the previous year, with final results yet to be determined. He noted that while the campaign has increased customer awareness, only 25% of member insurers supported its continuation in future year
Photo: Valter Berecz / Portfolio
