HUNGARY: MNB: Hungarian insurers are in good shape

8 November 2021 — Marina MAGNAVAL
Despite the pandemic, growth of the insurance market has not stopped, as the president of the Association of Hungarian Insurers (MABISZ) said at the conference of the organization.

Perhaps the saddest statement in the presentation was that the insurance market will not be able to cope with climate risks and to provide product-level protection against natural damage, reports.

During the conference of MABISZ, MNB's representative noted that according to the MNB's premium income expectations, the insurance sector's premium income may exceed HUF 1.3 billion this year. In life insurance the growth rate is rising (regular products show an annual increase in premium income of 6-7%), while in non-life insurance there is a slight slowdown.

MNB pointed out, that the sector's profitability is good, its ROE is 24%, and its return on Solvency II capital is about half of that, which, according to the MNB, can be considered adequate. With a few exceptions, insurers are in good shape, the sector's solvency is above 200%.

By 2026, the goal would be a 3% GDP penetration for the insurance sector, while currently it is around 2.7%, but as GDP grows, this indicator may decline to the previous 2.5%, so the sector needs to "hold on". For this, the premium income would have to go up to around HUF 2.2 billion, MNB explained at the conference.

*EUR 1 = HUF 358.78

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