(MENAFNEditorial)
Long standing challenges such as lack of affordability and customer understanding continues to restrain the life insurance segment in Hungary and will likely do so through the forecast period. Tax breaks for pension products that have been available through 2014 have been positive - but not a game changer for the life segment. The non-life segment will continue to be held back by overcapacity (with the consequent downwards pressure on prices) and the slow real growth of the economy: these challenges will persist through 2015 and on to the end of the forecast period. While many of the players are successfully defending profit margins through control of costs and enhancements to operational efficiencies we continue to believe that some will rethink their commitment to the Hungarian insurance sector.
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As is the case for a number of national insurance markets in Central and Eastern Europe (CEE) the current situation and short-to-medium term prospects for the insurance sector of Hungary are uninspiring. In the life segment one constraint appears to remain the general lack of understanding of the benefits of the products that are on offer. Also we continue to believe that too many Hungarian households find life insurance unaffordable. The tax breaks that were introduced at the beginning of 2014 have contributed to some growth in demand for pension products - but the increase does not appear to have been a game changer for most of the insurers let alone the segment as a whole. This is at a time when investment earnings (and the returns that can be provided by unit-linked products) are held back by (very) low interest rates).
In the non-life segment the softness of the economy remains a major challenge. By some metrics overall activity in Hungary is rising but not by enough to have a meaningful impact on volumes. The main exception has been in the motor vehicle insurance sub-sector where sales of new policies have boosted compulsory motorists' third...
The Hungary Insurance Report has been researched at source and features Business Monitor International (BMI)'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.
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