STATISTICS: Hungary: Despite COVID-19, the insurance market closed 2020 with a moderate GWP increase

11 March 2021 —
STATISTICS: Hungary: Despite COVID-19, the insurance market closed 2020 with a moderate GWP increase
Last year, the aggregate GWP reported by Hungarian insurers totaled HUF 1,204 billion (~EUR 3.3 billion), according to the year-end figures published by the Central Bank (MNB), 4.7% more y-o-y. The life insurance business accounted for 44% and the non-life insurance business for 56% of total premium income.

At the end of 2020 Q4, the total contract portfolio of insurance companies rose by nearly 1% from its level a year earlier, reflecting more than 126,500 increase in new contracts to 14,482,550. This mainly resulted from a 1.3% rise in the number of non-life insurance contracts, accompanied by a somewhat declining number of life insurance contracts (a decline of 1.1%).

Anett PANDURICS - the MABISZ (Association of Hungarian Insurers) President, at a press conference held online mentioned that the y-o-y growth rate of 4.7%, is more modest as compared with previous years, but "it made perfect sense in a year like 2020, which was hit by such a severe pandemic", informed here. She added that the non-life insurance segment grew by 5.2% in the overall market, while the life insurance segment grew by 4 % y-o-y.

According to the MABISZ President, in life insurance, the growth rate was strongly influened by pension insurance, whose premium income increased by 16.8% y-o-y. wrote among the smaller LoBs, Anett PANDURICS highlighted insurance against financial losses, the reported y-o-y premium growth being by more than 22%.

In the non-life insurance market, the travel policies "essentially collapsed, premium income falling by 60%, while the number of concluded contracts in this segment falling by 17% year-on-year". In compulsory MTPL, the GWP increased by 7.3%, while the number of contracts increased by 3.8%. At the same time, incurred claims decreased. "The claims frequency decreased only in the second quarter, due to stricter restrictions, but was quickly corrected thereafter. The average amount of claim, however, increase, which is explained by the forint exchange rate, the radical rise in claims and the rise in service fees", said the MABISZ President.

At the end of December 2020, on the Hungarian insurance market were active 22 insurers: 5 specialised life insurers, 9 non-life, and 8 composite insurers.

Access and download the FY2020 Hungarian insurance market statistics.