Italy-based insurer Assicurazioni Generali S.p.A. said it paid around 35
billion Hungarian forints (USD 158.2 million) in damage-related payouts
in 2013, up 16.7% year on year, Hungarian business daily Vilaggazdasag
For the first time in a long while the Hungarian market recorded a positive growth rate in real terms: a 4.72% growth in GWP, an over 1.9% consumer price index. However, according to the latest statement of the Insurers Association (MABISZ) , "this growth is rather fragile at this point as its primary source is an increase in single premium life insurance sales." Life insurance accounts for a 54% share of the GWP volume, with underwritings of HUF 231.7 billion (EUR 784.4 million), up 9.95% y-o-y in national currency. Non-life premiums amounted to HUF 204.2 billion (EUR 667.4 million), decreasing by 0.8% as compared with 1H2012.
At the 10th Jubilee Professional Insurence Conference by the Association of Independent Insurance Brokers in Hungary (FBAMSZ), domestic insurers were awarded for quality services in 9 categories. Generali has proven to be the best in the field of vehicle insurance for the seventh time.
The volatility of the national currency exchange rate is once again affecting the market results when denominated in euro - thus, the almost 1% growth in the total GWP volume turns into an almost 2% fall when the market results are denominated in European currency. Yet, the situation is not changing so drastically when looking separately to the two main business line: the life insurance segment recorded a positive trend regardless the currency used, while the fall in non-life insurance premiums is visible both in HUF and euro.
When travelling abroad, half of the vacationers travel by car, according to a survey of Generali Insurance. 60% of respondents had been on holiday by car, and 11% of them said that they had problem with their car during the holidays. The reparation costs were an average of HUF 51 000. In most cases the vehicles broke down, got a flat tire, but the boiling of cooling water and the discarge of batteries is also common.
The integration of certain responsibilities of the Hungarian Financial
Supervisory Authority (PSZAF) into the central bank (NBH) can make not
only financial supervision but also monetary policy more stable, said
Economy Minister Mihaly Varga.
The Hungarian Financial Supervisory Authority (PSZAF) has responded to
plans of its amalgamation into the central bank (NBH). The President of
the watchdog said the supervision could function well even as part of
the national bank.
Financial market regulator PSzAF on Tuesday said it fined two
Austrian-owned companies a combined HUF 33 million for working together
to convince consumers to cancel their life insurance policies and
reinvest the money with them.
Aegondirekt.hu, a unit of insurer Aegon Magyarorszag, had revenue from
premiums of HUF 260 million last year, up 20% from 2011, Aegondirekt.hu
National Economy Minister Mihaly Varga met on Tuesday with chairman of
the Hungarian Insurers Association (MABISz) Anett Pandurics to review
the situation of the insurance business in Hungary, the National Economy
Ministry told MTI.
The evolution of the Hungarian public budget attracted particular attention from the financial analysts in February, as the first payment of several new taxes was due then. The financial transaction tax (FTT) brought in ~EUR 45.7 million (HUF 13.37 billion), about half of the average monthly government's cash flow FTT target for this year. The insurance industry's contribution to this amount was of about EUR 14 million (HUF 4.1 billion).
About three-fourths of Hungarian homes are insured, the highest rate in
the region, according to a survey by Generali PPF Holding.
Hungarian financial market watchdog PSzAF said last week that it fined
CIG Pannonia life insurer a combined HUF 8 million for prudential and
consumer protection shortfalls.
The Hungarian insurance market didn't succeed to maintain the upward trend that seemed to emerge at the end of the first quarter of 2012. Thus, in the next quarters the market volume continuously decreased as compared with the correspondent periods of the previous year, although the appreciation of about 6.5% of the Hungarian currency in relation to the Euro somehow flattened the downward curve. Thus, 2012 ended with a 6.75% GWP decrease in the local currency, while the figures denominated in euro showed a quasi steady evolution (a -0.4% GWP change as compared with 2011).
Until the half of February snow, ice and freezing rain caused many
damages not only in transport but also in property. Generali Insurance
company in Hungary reports almost 26 000 claims in car and property
insurance of total value more than HUF 2,7 billion for the first two
month of 2013.
Last week a medium strength earthquake was near Jaszbereny, in Heves town and around its neighborhoods.
In Hungary, legislation introducing an insurance premium tax is effective 1 January 2013.
After the results of the first half of 2012 showed a worrisome decrease, the Hungarian insurance market seems to recover to a certain extent, according to the market results denominated in the European currency. Thus, although it maintained a downward trend, the 3Q2012 results appear to show signs of a flattening downward curve. GWP amounted to EUR 2.06 billion, 2.45% y-o-y less, as compared with the over 12% fall recorded in 1H2012. Yet, the improvement is mostly due to the HUF 8% appreciation, while in local currency, the total GWP amounted to HUF 586.08 billion, 5.26% y-o-y down, maintaining a quasi constant decreasing pace.
The Hungarian government has approved the introduction of a new premium tax which will come into force on 1 January 2013. According to the global fiscal consulting company FiscalReps, the new tax applies to gross premiums at the rate of 15% on comprehensive "Casco" policies (EU classes 3 to 6) and 10% "accident and property" classes. We understand that the new tax replaces the Fire Brigade Tax but not the 30% tax on compulsory motor third party insurance which remains in force.
Members of the Hungarian Association of Insurance Brokers had 14.3
billion in revenue from commissions in 2011, association secretary
general Anna Palos Turczi told a conference in Siofok on Sunday.