Hungary’s insurance industry to reach $5.67 billion in 2025

Hungary’s insurance industry is poised for a strong recovery in 2022 driven by government support measures for economic recovery and buoyant consumer confidence.

Rakesh Raj, Senior Insurance Analyst at GlobalData, commented: “After contracting by 4.7 per cent in 2020, the Hungarian economy is expected to grow by 7.4 per cent in 2021. The recovery in the economy, as well as government-initiated stimulus programs, will support the insurance industry’s growth in the country.”

The government initiated various stimulus programmes such as income tax reliefs, re-introduction of the 13th monthly pension scheme, and an increase in administrative wages are expected to improve household consumption and support the Hungarian insurance industry which is expected to grow by 5.3 per cent in 2021.

Growth driven by economic recovery

Rakesh offers their view on the key segments in Hungary’s insurance industry: “General insurance accounts for 56 per cent of GWP in 2020 with life insurance accounting for the remaining 44 per cent share. Within general insurance, motor and property insurance are major lines of business and account for 85.6 per cent of premiums.

“Hungary’s insurance industry presents a positive-growth outlook over the next five years driven by economic recovery which has already reached pre-pandemic levels by the second quarter of 2021. Demand for general insurance will be driven by rising disposable income while the country’s aging population will support growth of life insurance in the country.”

Meanwhile, Australia’s insurance industry is expected to grow at a compound annual growth rate of 6.4 per cent.