(MENAFNEditorial)
Hungary's insurance market is neither especially large nor growing at a particularly fast rate. While the Hungarian economy is expected to grow at a moderate pace over 2015 concerns surrounding the health of the wider European economy look set to stymie demand for insurance coverage among both business and households. A shrinking population with a low average life expectancy presents a long-term challenge for insurers; however we see growth opportunities emerging in some markets including property 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 afford life insurance (and who understand it) are already using it.
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In the non-life segment soft prices will constrain premiums 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. The motor vehicle insurance market is a prime example of this as the stagnation of the country's passenger car fleet is expected to cause insurance premiums to flat-line over the next few years. Given the cautious environment for both consumers and businesses in Hungary it seems that what little growth impetus there is is likely to be the result of capital inflows from overseas. An example of this is the country's real estate sector where foreign investment is growing as investors look to take advantage of low borrowing costs and...
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.
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