Hungarian insurance market experienced about a 5% year-on-year increase in gross written premiums (GWP), reaching €2.2 bn, according to data from MNB.
When denominated in local currency (HUF), the market growth rate was nearly 12%, reflecting the depreciation of the Hungarian Forint against the Euro.
Overall, claim expenses rose by 2.4% to €1.07 bn. This figure masks contrasting trends in the life insurance and non-life insurance sectors. Life insurance saw a decline in benefits and indemnities paid by over 10%, while non-life insurance experienced a 19% increase in paid claims.
Hungarian insurance market key highlight
- Overall Market Growth: The Hungarian insurance market reaching €2.2 bn in GWP.
- Claim Expenses: Increased by 2.4% to €1.07 bn.
- Life Insurance Trends: Benefits and indemnities decreased by over 10%. Premiums grew by 1.35% to €804.6 mn, impacted by a 2% decline in Unit-Linked products.
- Non-Life Insurance Trends: Premiums rose by 7.19% to €1.39 bn, with a 19% increase in paid claims.
- Motor and Property Insurance: Accounted for about 54% of non-life GWP and generated nearly 44% of total claims paid.
- MTPL Insurance: Growth rate of 6.8%, with GWP reaching €463 mn. Paid claims increased by 18.37% to nearly €194 mn.
- Property Insurance Claims: Saw the largest increase, up 35.6%, due to extreme weather events. Average storm damage now exceeds HUF 120,000, 20% to 40% higher than in previous years.
Life insurance premiums grew modestly by 1.35% to €804.6 mn, impacted by a decline in Unit-Linked products, which saw premiums fall by about 2% year-on-year.
Non-life insurance premiums, which represent 63.5% of the total portfolio, reached €1.39 bn, up 7.19% year-on-year.
Motor and property insurance together account for about 54% of non-life GWP and generated nearly 44% of the total claims paid.
Mandatory motor third-party liability (MTPL) insurance saw a below-average growth rate of 6.8%, with GWP reaching €463 mn. Paid claims in this line of business increased by 18.37%, reaching nearly €194 mn.
The most notable increase in claims paid was for the property insurance class, up 35.6%, largely due to extreme weather events affecting Hungary.
The average storm damage now exceeds HUF 120,000, which is 20% to 40% higher than in previous years.
