Hungary Insurance Report

Published 28 July 2015

  • 70 pages
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$1,295.00
Hungary Insurance Report

BMI View: Hungary's insurance market is under-penetrated by both regional and global standards. Although total penetration has been consistent , it only accounts for only 2.7% of GDP which puts Hungary among the lowest rating countries out of the OECD member group, especially with an OECD average of 8.4% GDP. Regionally, unlike some of its counterparts in Central and Eastern Europe (CEE) , Hungary does not have a strong outlook in terms of premium growths from a large base as the country is more fragmented and facing numerous challenges. Recently the economy has enjoyed a small boost driven by private expenditure , but we don't see this impacting the segment radically due to lack of affordability and awareness , particularly among the life segment.

In the non-life segment, soft prices will constrain premium 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. Despite moderate economic growth in 2015 we don't anticipate significant growth in the segment as the shrinking population, high unemployment and low life expectancy all present key challenges for insurers. There are still growth opportunities in some sub sector lines such as property insurance, whilst some lines will continue to stagnate, such as motor 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...

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Life Premiums Forecast
15
Life Premiums
16
Table: Gross Life Premiums Written (Hungary 2012-2019)
17
Table: Net Life Premiums Written (Hungary 2012-2019)
17
Life Reinsurance Premiums
18
Table: Reinsurance Life Premiums Written (Hungary 2012-2019)
18
Life Insurance Claims
19
Table: Life Insurance Claims (Hungary 2007-2014)
19
Life Insurance Assets
19
Table: Assets (Hungary 2007-2012)
20
Life Insurance Drivers
20
Table: Life Expectancy by Gender (Hungary 2012-2019)
21
Table: Demographic Breakdown (Hungary 2012-2019)
21
Non-Life Premiums Forecast
22
Non-Life Premiums
22
Table: Gross Non-Life Premiums Written (Hungary 2012-2019)
23
Table: Net Non-Life Premiums Written (Hungary 2012-2019)
24
Non-life Reinsurance
25
Table: Reinsurance Non-Life Premiums Written (Hungary 2012-2019)
25
Non-Life Claims
26
Table: Non-Life Insurance Claims (Hungary 2007-2014)
26
Table: Non-Life Insurance Claims by Line (Hungary 2007-2014)
27
Non-Life Assets
27
Table: Assets (Hungary 2007-2012)
28
Non-Life Subsectors Forecast
28
Table: Non-Life % Breakdown (Hungary 2012-2019)
28
Motor Vehicle Insurance
29
Table: Motor Vehicle Insurance (Hungary 2012-2019)
30
Table: Insurance Key Drivers, Autos (Hungary 2012-2019)
31
Transport Insurance
31
Table: Transport Insurance (Hungary 2012-2019)
32
Table: Insurance Key Drivers, Freight Tonnage (Hungary 2012-2019)
32
Property Insurance
33
Table: Property Insurance (Hungary 2012-2019)
34
Personal Accident Insurance
34
Table: Personal Accident Insurance (Hungary 2012-2019)
35
Health Insurance
35
Table: Health Insurance (Hungary 2012-2019)
36
Table: Insurance Key Drivers, Private Health Expenditure (Hungary 2012-2019)
36
General Liability Insurance
37
Table: General Liability Insurance (Hungary 2012-2019)
37
Credit/Financial Guarantee Insurance
38
Table: Credit/Financial Guarantee Insurance (Hungary 2012-2019)
39
Industry Risk Reward Ratings
40
Emerging Europe Risk/Reward Index
40
Table: Emerging Europe Insurance Risk/Reward Index
41
Market Overview
42
Life Market Overview
42
Product Offering
42
Competitive Landscape
43
Table: Life Insurance Premiums (USDmn), 2006-13
44
Non-Life Market Overview
45
Product Offering
45
Competitive Landscape
45
Company Profile
47
Allianz
47
Generali
49
Groupama
52
UNIQA Group
54
Vienna Insurance Group (VIG)
56
Demographic Forecast
59
Table: Population Headline Indicators (Hungary 1990-2025)
60
Table: Key Population Ratios (Hungary 1990-2025)
60
Table: Urban/Rural Population And Life Expectancy (Hungary 1990-2025)
61
Table: Population By Age Group (Hungary 1990-2025)
61
Table: Population By Age Group % (Hungary 1990-2025)
62
Methodology
64
Industry Forecast Methodology
64
Risk/Reward Index Methodology
67
Table: Indicators
69
Table: Weighting of Indicators
70

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.

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