Mabisz: insurance companies’ drought payments are at HUF 40 billion

(Photo: Pixabay)

In his announcement, they recalled that during the same period last year, the total number of crop insurance claims was around seven thousand, and the amount of damage amounted to HUF ten billion; of this, ice damage was approximately eight billion forints. In the future, another HUF 1.2 billion payment can be expected for drought damages – they indicated.

They also mentioned that insurance companies accelerated their claim settlement processes as a result of the summer claims

They explained: the companies increased their claims expert and office capacities, for example, they revoked vacations, engaged contractor claims experts, regrouped their experts to the most affected areas, who were given higher approval rights. After pre-screening by phone, they took it in advance and speeded up the settlement of those reports where there was more than 80 percent damage with video claims settlement. There are insurance companies that have established a final claims settlement process without an inspection. Currently, 4 of the 24 Mabisz member insurers provide national coverage, and 8 local small insurance associations are also present on the market – they informed. Agriculture is “not an extremely profitable and high-risk sector of insurance”, they added as an explanation. Insurance companies’ agricultural premium income totaled HUF 22.0 billion last year, of which crop insurance premiums accounted for HUF 19.2 billion.

MTI