In the first half of 2024, the experts of Magyar Nemzeti Bank (MNB) welcomed a delegation from the National Bank of Serbia (NBS) in two stages. MNB shared the results of insurance supervision practices and experiences with the Serbian with partners to strengthen the capacities of the serbian central bank and to further harmonise national legislation.
The bilateral seminar on the subject of insurance supervision regulation took place within the framework of the EU-funded Western Balkans technical assistance program called "Programme for Strengthening the Central Bank Capacities in the Western Balkans with the Integration to the European System of Central Banks". From April 9-11, 2024, the MNB colleagues presented the Hungarian insurance market and its regulatory environment, focusing on the 1st pillar elements of the Solvency II regulation. They covered the valuation of life and non-life insurance technical provision, actuarial onsite inspection experiences, risk mitigation techniques including reinsurance, and the standard formula used to calculate the solvency capital requirement. The calculation of the expected profits from future insurance premiums (EPIFP) was illustrated with examples. The experts of the MNB also presented their experience in filling out and submitting the annual and quarterly European data provision of insurers.
The second phase of the study tour took place between June 11-13, 2024, and gave the Serbian colleagues an opportunity to review the Hungarian insurance legal framework and the MNB's prudential supervision activities, including the MNB's preventive, corrective, and reorganization measures. The program also covered the presentation of the role of these key functions.
On the second day, the focus shifted to the MNB's off-site and on-site supervision activities. On the third day, the participants met with representatives of the Association of Hungarian Insurers, and got to know the tasks and activities of the Association regarding compulsory motor vehicle liability insurance.
During the seminar, the two central banks were able to share their experiences in the field of insurance supervision, which should lead to more effective regulatory frameworks and supervisory practices in the future. With the help of the MNB, NBS staff gained insight into these methodologies and approaches, especially in the areas of risk assessment, determining the parameters of capital requirements, and the application of risk reduction techniques.
The objective of the Western Balkans EU program, implemented with the active participation of 19 central banks from the EU, is to strengthen the capacities of the beneficiary institutions with particular regard to the development of their analytical and political tools, as well as the transfer of the best international and European practices into national practice.