HUNGARY: non-life insurance business has become unprofitable in eight years

8 September 2022 —
In the second quarter of 2022 motor and travel insurance have recovered, while life insurance (single premium) and corporate property insurance have grown. The insurance sector's premium income has increased by 20%, wrote.

As the experts note, non-life insurance business is experiencing a major loss: in eight years it became unprofitable due to a 1.5-fold jump in claims costs, which are mainly related to industrial / agricultural fires and other damage to property. In the second half of the year, in addition to the drought, a new additional tax of about USD 50 billion could lower the sector's performance.

The MNB (National Bank) has published the latest figures for the insurance sector. Compared to a year earlier the premium income of the insurance market increased by 14.9% in 1H2022, and by 20.5% in the second quarter, the latter being the highest quarterly dynamics in recent years.

As part of this, the premium income of the life insurance market increased by 15.9% in 1H2022, and by 23.3% in the second quarter. Non-life insurance business recorded a 14.1% increase in premium income in 1H2022, and a 17.9% increase in the second quarter.

Thus, the nominal fee income of the sector exceeded inflation, which means that the fee income not only remained unchanged, but also increased its real value in both business segments, which is a good indicator for the insurance market in general, the source said.