Hungary Insurance Report

Published 27 April 2015

  • 75 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Hungary Insurance Report

BMI View: Hungary ' s insurance market is neither especially large nor growing at a particularly fast rate. While the Hungarian economy is expected to grow at a moderate pace over 2015, concerns surrounding the health of the wider European economy look set to stymie demand for insurance coverage among both business and households. A shrinking population with a low average life expectancy presents a long-term challenge for insurers; however, we see growth opportunities emerging in some markets, including property insurance.

There are some markets in Central and Eastern Europe (CEE) that can look forward to superior growth in premiums - and from a large base - through the forecast period. Hungary is not one of them. The country is a classic example of a fragmented market where excess capacity is causing prices to fall in the main sub-sectors of the non-life segment (namely property and motor vehicle insurance). A key metric is total penetration. This has been fairly constant at about 2.7% of GDP (which is not a high level) and is expected to remain broadly unchanged through the forecast period. Indeed, it appears that all the households and businesses that can afford life insurance (and who understand it) are already using it.

In the non-life segment, soft prices will constrain premiums growth in a fragmented marketplace. This is at a time that the near-stagnation of the wider European economy will continue to limit volumes growth. The motor vehicle insurance market is a prime example of this as the stagnation of the country's passenger car fleet is expected to cause insurance premiums to flat-line over the next few years. Given the cautious environment for both consumers and businesses in Hungary, it seems that what little growth impetus there is, is likely to be the result of capital inflows from overseas. An example of this is the country's real estate sector, where foreign investment is growing as investors look to take advantage of low borrowing costs and...

Table of Contents

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
13
Operational Risk
14
Industry Forecast
16
Life Premiums Forecast
16
Life Premiums
17
Table: Gross Life Premiums Written (Hungary 2012-2019)
18
Table: Net Life Premiums Written (Hungary 2012-2019)
18
Life Reinsurance Premiums
19
Table: Reinsurance Life Premiums Written (Hungary 2012-2019)
19
Life Insurance Claims
20
Table: Life Insurance Claims (Hungary 2007-2014)
20
Life Insurance Assets
20
Table: Assets (Hungary 2007-2014)
21
Life Insurance Drivers
21
Table: Life Expectancy by Gender (Hungary 2012-2019)
22
Table: Demographic Breakdown (Hungary 2012-2019)
22
Non-Life Premiums Forecast
23
Non-Life Premiums
23
Table: Gross Non-Life Premiums Written (Hungary 2012-2019)
24
Table: Net Non-Life Premiums Written (Hungary 2012-2019)
25
Non-life Reinsurance
26
Table: Reinsurance Non-Life Premiums Written (Hungary 2012-2019)
26
Non-Life Claims
27
Table: Non-Life Insurance Claims (Hungary 2007-2014)
27
Table: Non-Life Insurance Claims by Line (Hungary 2007-2014)
28
Non-Life Assets
28
Table: Assets (Hungary 2007-2014)
29
Non-Life Subsectors Forecast
30
Table: Non-Life % Breakdown (Hungary 2012-2019)
30
Motor Vehicle Insurance
31
Table: Motor Vehicle Insurance (Hungary 2012-2019)
32
Table: Insurance Key Drivers, Autos (Hungary 2012-2019)
32
Transport Insurance
33
Table: Transport Insurance (Hungary 2012-2019)
34
Table: Insurance Key Drivers, Freight Tonnage (Hungary 2012-2019)
34
Property Insurance
35
Table: Property Insurance (Hungary 2012-2019)
36
Personal Accident Insurance
36
Table: Personal Accident Insurance (Hungary 2012-2019)
37
Health Insurance
37
Table: Health Insurance (Hungary 2012-2019)
38
Table: Insurance Key Drivers, Private Health Expenditure (Hungary 2012-2019)
38
General Liability Insurance
39
Table: General Liability Insurance (Hungary 2012-2019)
39
Credit/Financial Guarantee Insurance
40
Table: Credit/Financial Guarantee Insurance (Hungary 2012-2019)
41
Industry Risk Reward Ratings
42
Emerging Europe Risk/Reward Index
42
Table: Emerging Europe Insurance Risk/Reward Index
43
Market Overview
44
Life Market Overview
44
Table: Life Insurance Premiums (USDmn), 2006-13
46
Table: Life Insurance Market (%) 2007-2013
47
Non-Life Market Overview
48
Table: Non-Life Insurance Market (USDmn) 2007-2013
49
Table: Non-Life Insurance Market (%) 2007-2013
50
Company Profile
52
Allianz
52
Generali
54
Groupama
57
UNIQA Group
59
Vienna Insurance Group (VIG)
61
Demographic Forecast
64
Table: Population Headline Indicators (Hungary 1990-2025)
65
Table: Key Population Ratios (Hungary 1990-2025)
65
Table: Urban/Rural Population And Life Expectancy (Hungary 1990-2025)
66
Table: Population By Age Group (Hungary 1990-2025)
66
Table: Population By Age Group % (Hungary 1990-2025)
67
Methodology
69
Industry Forecast Methodology
69
Risk/Reward Index Methodology
72
Table: Indicators
74
Table: Weighting of Indicators
75

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.

Key Benefits

  • 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).

Coverage

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.

Company Profiles*

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.

Sources

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.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc