BMI View: We have a positive long-term outlook for Hu n gary ' s life and non-life insurance segments, which should expand by roughly 5.5% annually over the coming years . Following overall market stagnation during 2016, improved economic conditions and a growing middle-class and ageing population are expected to generate an uptick in demand for life and non-life premiums. More specifically, growth in the mature motor insurance subsector will remain static while the other niches, including property and health insurance, will see a rapid surge in demand. The improved demand and insurance density across both major segments will likely attract increasingly more (foreign) investors.
|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||1.60||1.80||2.00||2.10||2.10|
|Gross life premiums written, USD, % y-o-y||8.0||0.3||-18.5||2.8||9.4||9.7||5.1||3.7|
|Gross non-life premiums written, HUFbn||377.50||392.30||429.80||430.60||443.00||460.90||483.90||508.30|
|Gross non-life premiums written, HUF, % y-o-y||5.6||3.9||9.6||0.2||2.9||4.0||5.0||5.1|
|Gross non-life premiums written, USDbn||1.70||1.70||1.50||1.50||1.50||1.60||1.70||1.70|
|Gross non-life premiums written, USD, % y-o-y||6.2||-0.2||-8.7||-4.7||4.8||6.7||3.5||2.4|
Key Updates & Forecasts
The Hungarian life insurance segment will account for roughly 54% of total insurance premiums written in 2017, which will amount to HUF513bn (USD1.8bn). Over the 2017-2020 period, life premiums are expected to grow by 6.8% annually on average, reaching HUF622bn (USD2.1bn) in 2020.
Non-life insurance constitutes the smaller and slightly less mature segment of Hungary's insurance market, with a 46% share in total written premiums in 2017. Non-life premiums should grow by 4.2% annually on average over the 2017-2020 period, reaching HUF508bn (USD1.7bn) in 2020.
Over the long-term, Hungary's insurance sector will primarily be driven by improved consumer sentiment, falling unemployment rates and rising household disposable incomes.
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.