BMI View: The Hungarian insurance market ' s low penetration rates and under-development provide plenty of opportunity for strong growth, but this will not transpire in 2016. This year will witness overall market stagnation in both the life and non-life segments. Rising disposable incomes, stronger economic growth and demographic change, with an increasingly middle-class and older population, will boost growth over the following years. While motoring insurance will show little growth, property and health lines will be growth leaders amid rising home purchases and cut-backs in state healthcare. The market is crowded with a number of foreign and domestic insurers and new entrants are likely to seek acquisitions, while consolidation is a likely possibility.
|Source: BMI/Hungarian Insurance Commission (MABISZ)|
|Gross life premiums written, HUFbn||432.70||451.80||441.50||477.20||512.70||548.20||584.40||621.90|
|Gross life premiums written, HUF, % y-o-y||7.4||4.4||-2.3||8.1||7.4||6.9||6.6||6.4|
|Gross life premiums written, USDbn||1.90||1.90||1.60||1.70||1.90||2.10||2.40||2.60|
|Gross life premiums written, USD, % y-o-y||8.1||0.3||-18.6||4.5||12.3||14.2||13.1||6.4|
|Gross non-life premiums written, HUFbn||377.50||392.30||429.80||430.60||445.40||463.20||481.30||498.80|
|Gross non-life premiums written, HUF, % y-o-y||5.6||3.9||9.6||0.2||3.4||4.0||3.9||3.6|
|Gross non-life premiums written, USDbn||1.70||1.70||1.50||1.50||1.60||1.80||2.00||2.00|
|Gross non-life premiums written, USD, % y-o-y||6.2||-0.2||-8.7||-3.1||8.1||11.1||10.3||3.6|
Key Updates & Forecasts
Growth in demand for life insurance will support a steady increase in life underwriting over the next few years, with premiums growth set to outpace that of the non-life market by a clear distance. As such, the share of life insurance covers to overall insurance premiums in Hungary will increase over the forecast period, rising from about 52.6% in 2016 to 55.5% in 2020. Still remaining low relative to other markets in Central and Eastern Europe (CEE), non-life penetration will moderately decline, from 1.3% to 1.2% of GDP over the period.
Non-life premiums will rise on average by 3.0% in 2016-2020, which is a marked decline on the 4.8% annual growth forecast in the previous quarter. The downgrade is in line with BMI's overall reduction in economic growth forecasts, although premiums will strengthen from 2017 amid stronger market performance assisted by the low interest, lower tax environment and an ageing population.
Property and motor vehicle insurance will remain the pillars of non-life insurance spending through to 2020, but property lines will overtake the stagnant motoring segment as the largest non-life sub-sector.
The Hungary Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Hungary Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Hungarian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Hungary to test other views - a key input for successful budgeting and strategic business planning in Hungary's insurance market.
- Target business opportunities and risks in Hungary through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.