To meet the growing demand for single premium insurance, Citibank and Aegon Hungary have developed a new unit-linked insurance product called Multifund.
According to the Association of Hungarian Insurance Companies, total revenue of single premium insurance products in Hungary have tripled in the last two years, an increase from HUF90 billion at the end of 2005 to HUF239 billion at year-end 2007. The majority of the insurance premium payments came from unit-linked products.
The new products will be available in Citibank branches upon completion of an insurance proposal package with the assistance of Citigold bankers.
Batara Sianturi, country officer for Citibank Hungary, said: Compared to other unit-linked products available on the market, Multifund customers can select from funds of several onshore and offshore fund houses – a total of 94 mutual funds of seven fund houses – including equity, bond, real estate, money market, and other funds.
The invested amount can be reallocated any time among the available funds in the specified currency. The reallocation is free of charge in many cases; furthermore it is free of interest withholding tax.