Expanding aura of Hungary's Non life Insurance Market: Ken Research

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Expanding aura of Hungary's Non life Insurance
Market Ken Research
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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).
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• 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.

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• 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.

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• 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 Europes 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, Hungarys 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.

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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.
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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.
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Companies Covered Allianz Hungaria Biztosito,
ZrtGenerali-Providencia Biztosito, ZrtAegon
Magyarorszag altalanos Biztosito, ZrtGroupama
Garancia Biztosito, ZrtUniqa Biztosito, ZrtUnion
Vienna Insurance Group Biztosito, ZrtKH
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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ance-hungary-key-trends/81984-93.html   Related
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Ankur Gupta, Head Marketing Communications
Ankur_at_kenresearch.com 91-9015378249
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