Brokers’ liability in Hungary

The Hungarian government is producing a draft decree on liability insurance of insurance brokers. An amendment to the Insurance Act will double the level of liability cover that insurance brokers are required to carry, bringing it up to a minimum of Ft50mn from 1 January 2001. However, those already with cover have until 30 April 2001 to comply. A late modification reduces the self-insured liability level to a maximum of Ft300,000 – a compromise between the Financial Supervisory Authority (PSZAF) and brokers.