Allianz Hungary Expands Third Party Auto Coverage

Allianz Hungária announced that it has introduced new features to serve its motor third party liability insurance customers, and has further strengthened its position as the market leader in the country.

The company’s announcement noted that Hungarian motorists are demanding more from insurers, making for tough competition in the market for motor third-party liability insurance. It said that new insurers had recently been advertising rates “so low that they are ill-proportioned to the corresponding risk.”

It also observed that “consumers are increasingly using the Internet to shop around for insurance premiums. For example, over 850,000 premium calculations were run through Allianz Hungária’s Internet calculator last November, compared to just 100,000 in the same period of 2003.” As a result Allianz Hungária has been investigating the complex demands of motorists in Hungary.

“The company has completed its most successful motor third-party liability insurance campaign to date,” said the announcement on the Allianz Web site (www.allianz.com). “By providing the right services at the right price, and communicating these features, Allianz Hungária found an effective way to stay ahead of the competition. By January 1, 2005, the company not only safeguarded its market share of almost 50 percent, but also attracted 50,000 new motor customers. Allianz Hungária has thus started the new year with a record number of 1,749,000 motor customers.”

A study, commissioned by Allianz, found: “70 percent of Hungarian motorists use their family car every day. By contrast, the European average is below 50 percent. Survey respondents explained that the family car is used for a wide variety of purposes, including going to work, taking children to school or elderly parents to the doctor, shopping and other recreational uses. For these people, not having a car available would upset their day-to-day routine. The survey also revealed that one car breakdown seriously affects the lives of three people on average.

“At the same time, motorists are inclined to underestimate the financial consequences of a car accident, both in terms of personal injury and damage to the car. Fact is, the average damage caused by an accident in 2003 was valued at 400,000 Hungarian forints (about 1600 euros [$1200]). By contrast, the average Hungarian motorist estimates that any accident he may cause or suffer would only be minor, with a presumable damage of 100,000 forints (400 euros [$303]).

“The survey also investigated motorists’ expectations regarding car repairs. Most important to respondents were minimizing the time they have to go without a car, having the least possible hassle in terms of bureaucracy and the various parties they have to deal with, and minimizing the financial burden, particularly given that such costs arise unexpectedly.”

Allianz now offers more comprehensive services to motorists with motor third-party liability insurance, including breakdown assistance arising from both accidents and technical failures at no additional charge. Customers also have access to a 24-hour call center.

The bulletin also noted: “Allianz Hungária now offers ‘active’ claims settlement, like no other on the market. This is available for motorists with both CASCO and liability insurance. When their car is damaged, Allianz customers need not rely on the insurance company of the causing party. Instead, repairs are arranged by Allianz Hungária. These are carried out by any of the more than 900 repair shops contracted by the Hungarian market leader. Allianz Hungária covers the costs so that customers don’t have to struggle with the financial burden or wait for an unfamiliar insurer’s response. Accounts are then settled between the insurance companies.”

Allianz Hungária manages almost half of all motor third-party insurance policies in Hungary. Total premium income in 2003 (all business lines) amounted to 156 billion forints (594.5 million euros [$450 million]).