BMI View: Given the low penetration and density in both the life and non-life sectors, BMI believe s that Hungary's insurance market offers considerable potential for growth over the next few years. The under-development of the market stems in large part from the low incomes and life expectancies of Hungary's population, and we believe the expansion of the middle class will lead to growth in disposable household income and hence demand for personal insurance lines over the next few years. The health insurance market in particular presents a number of opportunities for investors given the immaturity of the market and the currency paucity of policy holders. Cut backs in state-provided healthcare services and the growth of Hungary's retirement age population should further support the growth of the sub-sector. While a number of the major European insurers are already active in the market, the competitive landscape remains quite fragmented and there will be opportunities for mergers and acquisitions of smaller indigenous providers over the next few years.
|BMI/Hungarian Insurance Commission (MABISZ)|
|Gross life premiums written, HUFbn||432.70||451.80||527.90||576.00||623.70||671.60||720.40||770.80|
|Gross life premiums written, HUF, % y-o-y||7.4||4.4||16.8||9.1||8.3||7.7||7.3||7.0|
|Gross life premiums written, USDbn||1.90||1.90||1.90||2.00||2.20||2.60||3.00||3.20|
|Gross life premiums written, USD, % y-o-y||8.1||0.3||-2.6||4.2||14.2||15.4||13.8||7.0|
|Gross non-life premiums written, HUFbn||375.90||392.30||414.10||431.30||453.30||477.30||500.50||522.80|
|Gross non-life premiums written, HUF, % y-o-y||5.1||4.3||5.6||4.2||5.1||5.3||4.9||4.4|
|Gross non-life premiums written, USDbn||1.70||1.70||1.50||1.50||1.60||1.80||2.10||2.10|
|Gross non-life premiums written, USD, % y-o-y||5.8||0.2||-12.0||-0.6||10.9||12.9||11.3||4.4|
Key Updates & Forecasts
Reports by Hungary's media in April 2016, suggested that life and health insurance company, CIG Pannonia, was in a strong position to acquire the life and non-life insurance units of state-owned bank, MKB. The bank was nationalised by Hungary's government in 2015 with a view to returning to private, Hungarian ownership.
In the same month, the CEO of one of Hungary's largest health insurance brokerages, MediHelp, said he expected penetration growth in terms of health insurance take-up in the country over the next few years. At present 10% of the Hungarian population own health insurance and he expects this ratio to rise to 25% in the coming years.
An improving macroeconomic environment and, in particular, improvement in consumer sentiment has led to an upgrade of our medium-term growth projections for insurance premiums. We forecast non-life premiums to grow by 7.9% a year on average over 2016-2020, while non-life sales will grow by 4.8% a year.
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.