Expanding aura of Hungary's Non life Insurance Market: Ken Research
Ken
research announced recent publication on, "Non-Life
Insurance in Hungary, Key Trends and Opportunities to 2020". The report provides a detailed outlook by
product category for the Hungarian non-life insurance segment, and a comparison
of the Hungarian insurance industry with its regional counterparts. It provides
values for key performance indicators such as written premium, incurred loss,
loss ratio, commissions and expenses, combined ratio, total assets and total
investment income during the review period (2011-2015) and forecast period
(2015-2020). The report also analyses distribution channels operating in the
segment, gives a comprehensive overview of the Hungarian economy and
demographics, explains the various types of natural hazards and their impact on
the Hungarian insurance industry, and provides detailed information on the
competitive landscape in the country. The report brings research, modelling and
analysis expertise, giving insurers' access to information on segment dynamics
and competitive advantages, and profiles of insurers operating in the country.
The report also includes details of insurance regulations, and recent changes
in the regulatory structure.
The Hungarian non-life segment accounted for 44.1% of the
insurance industry's overall gross written premium in 2015. The Hungarian
non-life insurance segment expanded during the review period at a review-period
CAGR of 2.1%. The Insurance Companies and Insurance Activities Act was
introduced in December 2014, and came into force on January 1, 2016. Property
insurance was the largest category, accounting for 46.9% of the segment's gross
written premium. Agencies are a highly preferred channel because of their
detailed understanding of risks and products related to their field and region.
The Hungarian non-life insurance segment is highly concentrated, with the 10
leading companies accounting for 91.8% of its gross written premium in 2015.
If compared to its regional counterparts, in Europe the trend
of non-life premium revenues, the impact of the economic crisis was felt later,
typically through a general decline in demand; consequently, a significant
decrease in the premium revenues was seen in 2009 for the first time with a
slight delay while 2008 still saw a moderate expansion. The CEE-10 countries
performed better, with the changes resulting from the price changes in the
premium revenues filtered. The market dynamics in the member states showed a
significant dispersion in 2009: in the Baltic States, for instance.
The domestic market under performed in both years in
comparison with the regional average. It may considerably stem from the fact
that the crisis affected the Hungarian economy more than the regional average.
Examination of the distribution of the premium revenues among business lines,
it can be established that the greatest weight in the European market is that
of the accident and health insurance branch. This is approximately level with
the motor insurance branches in terms of premium revenues, followed by
insurance against fire, natural disasters and other property insurance as the third
most significant branch. The CCE-10 group is characterised by a product mix
considerably different from the foregoing, mostly due to the underdevelopment
of the health insurance segment. Hungary's market characterizes another major
feature-the high ratio of home insurances.
In spite of Europe’s economic slowdown, the Hungarian non
life insurance sector continues to strengthen as more and more of the
population seek greater protection. During the financial crisis, Hungary’s
insurance sector proved itself crisis-resistant. In another sign of its
robustness, the market has shown impressive annual growth over the last three
years: according to the Hungarian Insurers’ Association, in 2015 the number of
total written premiums had increased. Non-life insurance written premiums were
the strongest basis of this growth, having increased tremendously. Revenue
expansion in non-life insurance can be attributed to the fact that after a long
period of time, the fierce premium competition in the field of compulsory third
party liability motor insurance did not continue. This in turn has caused the
written premiums of this line of business to increase in 2015. Nonetheless,
average insurance premiums are still far below the premium level of
neighbouring countries. Therefore, although the market continues to show signs
of stability, there is scope for considerable growth. Following negotiations,
the Insurance Act has been amended in several stages: as of this year, the act
now centrally regulates the minimum levels of investment and surrender values
while limiting the commission rate payable for life insurance. To further
strengthen insurance rules, it has also become mandatory to involve
depositaries, and from next January, only those units that have been invested
by the insurance company may be shown.
An even more ambitious change is that, uniquely in Hungary,
the total expense ratio (TER) – which was introduced in 2010 remains applicable
as a legislative provision. Regarding our short-term plans, we understand
current economic trends are more beneficial for the development of non-life
insurances. We are witnessing organic market development in this field, where
both written premiums and penetration are increasing, therefore we are
investing significant professional resources into it. Although a stronger
regulatory environment does not favour life insurance policies, we can find
niche markets in terms of product portfolio and sales channels, in which our
company may gain significant advantages. Likewise, we benefit from our flexibility,
which enables us to provide services that harmonise with the increasingly rapid
pace of life and the habit of planning for the shorter term. Our overall aim is
to have people consider Post Insurance – after a year or two, as well as after
10 years – as an easily accessible, reliable and useful partner in many
occupations, just as more than three million Hungarian customers have
considered us for almost 1.5 decades.
Companies Covered
Allianz Hungaria Biztosito, ZrtGenerali-Providencia
Biztosito, ZrtAegon Magyarorszag altalanos Biztosito, ZrtGroupama Garancia
Biztosito, ZrtUniqa Biztosito, ZrtUnion Vienna Insurance Group Biztosito,
ZrtK&H Biztosito ZrtWaberer Hungaria Biztosito, ZrtKobe KozEp-Europai
Kolcsonos Biztosito, Egyes,letMagyar Posta Biztosito Zrt
Key Factors Considered in the Report
Hungary Non-Life Insurance Industry
Hungary Non Life Insurance Companies
Hungary Non- Life Insurance Market Research
Non-Life Insurance Sector Trends Hungary
Hungary General Insurance Regulations
Motor Insurance Market Research Hungary
Property Insurance Sector Hungary
Health Insurance Demand Hungary
Hungary Automobile Insurance Industry Research
Hungary General Insurance Industry
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Contact Us:
Ken Research
Ankur Gupta, Head Marketing &
Communications
Ankur@kenresearch.com
+91-9015378249
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