Hungarians fear their assets more than their lives
According to a national representative survey by Generali, Hungarians living in rural areas are much more afraid of damage to their homes, belongings or cars than those living in Budapest. According to the insurer’s research, 61% of people living in smaller settlements have some form of insurance for their property, compared to only 17% of people in Budapest.
The survey also asked how customers prefer to manage their insurance. Although online transactions are becoming increasingly popular, two thirds of Hungarians still prefer face-to-face advice. This is particularly true for customers living in smaller towns and cities: 65% prefer face-to-face consultations, partly for demographic reasons: the average age of rural customers is higher and they rely to a large extent on advisers in addition to customer services.
The answers to the questions on administration also reveal which assets people consider most important to secure. The largest proportion of respondents in rural areas are worried about their home, with 37 per cent consulting their insurer’s specialists in person about home insurance if possible. 28 per cent expect a face-to-face consultation for insurance on their savings and 18 per cent for insurance on their car.
“These results are also in line with our research last year, when we saw that those with insurance were the most likely to fear home damage. So it is no coincidence that they prefer to be sure and consult an expert on this issue, i.e. matters affecting their home. In general, we are more concerned about our valuables than our health: 46% of respondents had personal insurance and 61% had property insurance.”
– said Róbert Márta, Member of the Board of Directors of Generali Biztosító, responsible for sales.
Personal consultations are usually conducted with a specialist from an insurance company, but if you have not yet chosen an insurer, you may want to consult an independent adviser.
For many people, personal consultation is important
Generali stressed that, according to its survey, there is also a wide variation between municipalities in the role of insurance consultants. 56% of customers in smaller towns and villages use an adviser for their insurance, compared to 28% in the capital and 16% in the county. A high proportion of people in Eastern Hungary also seek help from experts, with 41% preferring to receive personalised advice before taking out an insurance policy.
In Generali’s experience, these advisors are often real “celebrities” in rural communities, with much greater trust than in larger cities.
Better choice of home insurance this year
Many people take out a policy once for their home and then never change it, but instead it is worth looking every few years to see what options are still on the market. It’s also worth renewing your home insurance if you’ve renovated your home or bought new possessions, as this could easily introduce new risks that your policy doesn’t cover.
The topic is also topical because this year the MNB introduced new standards for consumer-friendly home insurance. To qualify for the consumer-friendly home loan rating, companies must apply with their own loan schemes, and in order to win the title, most companies have made the terms and conditions of their services more favourable.
The MFO (Qualified Consumer Friendly Home Insurance) class of service must meet standards such as an extended basic package covering all the risks that existentially threaten households, including 15 basic risks of environmental disaster and external causes (fire, storm, lightning, etc.), plus 5 more common risks that are usually only available as an add-on (such as the aforementioned burglary or water damage). It is also a requirement that the MFO must allow the customer to take out supplementary insurance for a specific type of damage and that the customer must be properly informed and be able to make use of online administration.