The Hungarian insurance sector is poised for a strong recovery in 2022, thanks to government measures to support economic recovery and buoyant consumer confidence.
Rakesh Raj, Senior Insurance Analyst at GlobalData, commented: “After a contraction of 4.7% in 2020, the Hungarian economy is expected to grow by 7.4% in 2021. The recovery of the economy, together with the stimulus initiated by the government, will support the growth of the insurance industry in the country.
The government has launched various stimulus programs such as income tax relief, the reintroduction of the 13th monthly pension scheme and an increase in administrative salaries are expected to improve household consumption and support the Hungarian insurance sector, which is expected to grow. by 5.3% in 2021.
Growth driven by economic recovery
Rakesh gives his perspective on the key segments of the Hungarian insurance industry: “General insurance accounts for 56% of GWP in 2020, with life insurance accounting for the remaining 44%. Within general insurance, automobile insurance and property insurance are the main lines of business and account for 85.6% of premiums.
“The Hungarian insurance sector shows a positive growth outlook over the next five years, driven by the economic recovery which has already reached pre-pandemic levels in the second quarter of 2021. Demand for general insurance will be driven by the he increase in disposable income as the country’s aging population will support the growth of life insurance in the country.
Meanwhile, the Australian insurance industry is expected to grow at a compound annual growth rate of 6.4%.