As was noted at the insurance professional conference of the Hungarian Association of Independent Insurance Brokers (FBAMSZ), of course, there are plenty of challenges, from the home insurance price freeze to the still high tax burden and revision of Solvency II, portfolio.hu writes.
“This year it is worth mentioning ten positive trends”, said Nagy Koppány, Director of the MNB (National Bank), in his presentation, referring to the market data for the first half of the year, which show not only the premium income level of over HUF 1,000 billion and the 197% capitalization, but also the insurers return on equity, which increased from 6.5% to 12.9%, and even an improvement in terms of market penetration. According to the MNB director, market penetration currently stands at 2.6% compared to 2.1% last year, but the mid-year figure is always higher, with the premium income/GDP ratio expected to be 2.3-2.4% by the end of 2025.
The sales of regular premium products in the life insurance market are growing dynamically, from the previous stable level of HUF 50 billion to HUF 90-100 billion this year. As for non-life insurance, the individual products almost uniformly show a 10% increase in premium income, and competition was also stimulated by the housing campaign and the spread of qualified consumer-friendly home insurance, according to MNB.
Since 2000, Hungarian insurers' premium income has increased by 363% nominally, but only by 31% in real terms, and the real value decline that has occurred since 2021 has not yet been overcome, said Bence Holló, President of the Association of Hungarian Insurers (MABISZ) in his presentation. However, the transformation of the insurance extra-profit tax and the subsequent recovery of single-premium life insurance contributed to the fact that premium income increased by more than 20% y-o-y in the first half of this year, and the dynamics are above 10% on an adjusted basis.
“According to our current best knowledge, the penetration of home insurance in Hungary is 80%, which is very favorable in international comparison. Hungarian home insurance provides an outstanding price-value ratio even in European comparison, and unlike many European countries, the proportion of deductible home insurance in our country is negligible. However, the home insurance campaign did not significantly increase the number of home insurance contracts overall, and this year's campaign affected fewer contracts than last year. While 500 thousand contracts were signed in 2024, 417 thousand signed in 2025. Insurers are divided on whether it is worth continuing the campaign, but they would like to simplify the administrative burden”, explained Bence Holló.
35371 views
