The margin cap remains, NGM is satisfied

The government always takes action against unjustified price increases, and therefore welcomes the fact that after banks and telecommunications companies, insurers are also voluntarily limiting and freezing home insurance premiums. In the case of home insurance premiums, insurers could have expected a large premium increase, which would have meant a significant additional burden for Hungarian families.

The government takes action against all unjustified price increases, and therefore – keeping in mind the financial security of families – the Ministry of National Economy immediately initiated negotiations with the players in the insurance sector. The ministry asked insurance companies to voluntarily undertake price restrictions and premium reductions, following the example of the banking sector and telecommunications service providers. If the negotiations had not led to a result, the government was ready to intervene in the pricing of home insurance through regulatory means, the NGM recalled.

The NGM confirmed that in recent days, insurance companies have announced voluntary premium restrictions. The government welcomes the fact that insurers have accepted the government’s objective and are taking part in the fight against unjustified price increases in the interests of families.

Like banks, the Hungarian insurance sector is also on stable foundations, which allows for the reduction of home insurance premiums, while insurance amounts continue to follow the increase in the value of real estate in order to avoid underinsurance. As a result, despite the premium reduction, there should be no deterioration in the quality of the service provided.

According to their announcements, the insurers voluntarily undertake that the premium level of new home insurance contracts concluded by the population will not exceed the premium level of December 31, 2024, if conditions remain unchanged, and this commitment will be maintained until June 30, 2026. Furthermore, in the case of existing contracts, all customers will receive a discount; the insurance premium paid by customers may not increase during the 1-year period from the anniversaries between July 1, 2025 and June 30, 2026.