PANDURICS, MABISZ: The competition in Hungarian market is strong

25 May 2021 — Andrei Victor
Last year, the GWP of MABISZ (Association of Hungarian Insurance Companies) member companies totaled HUF 1,242 billion (~EUR 3.4 billion), about 4.8% vs. FY 2019 figures (HUF 1,204 billion), according to the to the association's aggregate data.

The figures differ slightly from the MNB's statistics, as the latter do not take into account the results of branches. On the other hand, not all insurers are members of the association. MABISZ currently has 22 members. Of these, 17 are insurance companies based in Hungary, two are mutual insurance associations registered in Hungary, and three operates as EU branches, as MABISZ informed in a statement published on its website.

"Again, the non-life business's premium income grew at a faster rate, closing 5.2% higher than in 2019 (GWP of HUF 684 billion last year). The life business grew by four percent (to HUF 557 billion) due to strong growth in unit-linked and pension insurance. Although the number of contracts did not increase, premium income per contract increased. Due to the favorable trends, the declining share of life insurance reserves in the net financial assets of the Hungarian population until 2019 started to increase slightly. Within the non-life business, the travel insurance market virtually collapsed, with premium income falling by 59%. Non-life market growth excluding travel insurance was 6.8%. Almost every other non-life product group was able to grow.", said Anett PANDURICS, President of MABISZ.

MABISZ mentioned at the end of 2020, the market concentration of the five largest insurers (58.6%) decreased slightly compared to the previous year (60.1%): "The order has not changed, with ALLIANZ still having the highest market share (15.6%), followed by the GENERALI Group (14.7%) and then AEGON (11.1%). In addition, GROUPAMA has a market share of over ten percent (10.1 percent)".

As the President of MABISZ pointed out, "the market concentration is medium, the competition in the Hungarian insurance being strong".

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