Market Guide: Life Insurance and Pensions in Hungary 2006

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Following compound annual growth of 8.9% in the last three years, between 2006 and 2010, growth in the Hungarian life and pensions market is set to accelerate to 21.1%
    • The Hungarian life and pensions market expanded by a compound annual rate of 8.9% between 2001 and 2005
    • Growth in the life and pensions market will accelerate
    • The market will continue to be shaped by EU legislation
    • Mutual insurance companies dominate the Hungarian market
    • The market leaders rely on distribution through intermediaries, including banks
• Table of Contents
• Table of figures
• Table of tables
• MARKET OVERVIEW
  • The Hungarian life and pensions market expanded by a compound annual rate of 8.9% between 2003 and 2005
    • The Hungarian life and pensions market reflected a compound annual growth rate of 8.9% between 2003 and 2005
    • Since 2003, the proportion of premium income attributed to non unit-linked insurance has declined
    • Debt securities account for the single highest proportion of the investment assets of life insurance companies
• MARKET FORECASTS
  • Growth in the life and pensions market will accelerate
    • Over the next 5 years, premium income is set to grow at a compound annual rate of 21.1%
• MARKET REGULATION
  • The market will continue to be shaped by EU legislation
    • The Hungarian Financial Supervisory Authority (HFSA) regulates the life insurance and pensions sector
    • Recent legislation affects insurance intermediaries
    • Insurance providers and intermediaries are subject to HFSA recommendations on client information
    • Distance marketing rules define sales practices
    • Proposed anti-money laundering legislation implies an additional administrative burden for insurers
    • Upcoming laws will enhance consumer protection
    • Providers may be required to fund a new insurance guarantee
• COMPETITIVE MARKET STRUCTURE
  • Mutual insurance companies dominate the Hungarian market
    • The Hungarian insurance market is dominated by mutual insurance companies, by number
    • The top 5 life insurers control just under three-quarters of the market by gross premium income
• MARKET LEADERS
  • The market leaders rely on distribution through intermediaries, including banks
    • ING (ING Hungary Insurance Pte.Co.Ltd.) is the life insurance market leader, based on premium income in 2005
    • OTP Garancia Insurance trails the market leader in the life insurance sector
    • AEGON Hungary ranks third among life insurance companies
    • Generali-Providencia is the fourth highest ranked life insurer by premium income
    • Allianz rounds out the top 5 life insurers
• APPENDIX
  • Definitions
    • Capital redemption policy / bond
    • Composite insurer
    • Defined contribution pension scheme
    • Defined benefits pension scheme
    • Group policy
    • Individual pension scheme
    • Individual policy
    • Life assurance
    • Occupational pension scheme
    • Pension insurance policy
    • Premium income
    • Regular premium
    • Single premium
    • Technical provisions
    • Traditional insurance
    • Unit-linked insurance
  • Further reading
    • Interactive Databases
    • Reports and Briefs
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Life and pensions insurance premium income, segmented by product, EURm, 2003-2005
    • Table 2: Life and pensions insurance premium income, segmented by product, in percentages, 2003-2005
    • Table 3: Life and pensions insurance premium income, segmented by investment risk, EURm, 2001-2005
    • Table 4: Life and pensions insurance premium income, segmented by investment risk, in percentages, 2001-2005
    • Table 5: Investment assets of life insurance companies, EURm, 2001-2005
    • Table 6: Investment assets of life insurance companies, in percentages, 2001-2005
    • Table 7: Life and pensions insurance premium income, EURm, 2006-2010
    • Table 8: Number of insurance providers segmented by type, as at Dec 2005
    • Table 9: Top 5 life insurers by gross premium income, as at Dec 2005
  • List of Figures
    • Figure 1: Life premiums accounted for more than 60% of total premium income between 2003 and 2005
    • Figure 2: Between 2001 and 2005, the market for unit-linked insurance experienced compound annual growth of 21.1%
    • Figure 3: The proportion of life insurers' investment assets held in stocks and other assets declined sharply between 2001 and 2005
    • Figure 4: By 2010, premium income in the Hungarian life and pensions market will amount to EUR2.8bn
    • Figure 5: Insurance companies account for 44% of the total market (life and non-life) by number
    • Figure 6: ING led the Hungarian life insurance sector as at December 2005