Based on the 3Q2019 results, last year was a successful one for Hungarian insurance companies, the 11% y-o-y increase in GWP justifying optimistic expectations for the year-end result. "Premium income of the sector is expected to exceed HUF 1,100 billion (~EUR 3.3 billion) by the end of the year," said Mihaly ERDOS, vice president of the Hungarian Insurance Association (MABISZ).
According to a recent MABISZ press release, the increase seen in the MTPL market, largely due to the inclusion of insurance tax in MTPL premiums, had a significant impact on the overall market evolution. Assuming the market maintained a similar dynamic in Q4, total annual MTPL premium revenue could be of approximately HUF 230 billion (EUR 710 million).
For the current year Hungarian insurers expect double-sided impact on the motor insurance market:
- on the one hand, the negative effect of a slowdown on the part of big vehicle dealerships;
- on the other hand, an increasing demand both for compulsory MTPL and Motor Hull insurance thanks to the government's family protection program through wich as of July 1, 2019 families with at least three children are getting financial support for the acquisition of a car (no older than one year and with a price limit of HUF 2.5 million)
Among other branches, Mihaly ERDOS emphasized the potential for growth of the insurance lines addressing the needs of micro-enterprises, which are currently significantly underinsured. The sector expects also dynamic growth in travel insurance. In the case of home insurance, the expected slowdown in real estate markets and the emergence of qualified consumer-friendly home insurance products could trigger a shift in the market in 2020. Retirement insurance this year will continue to be the driving force behind life insurance.