Challenging start to the year for Hungarian insurers

The tough market conditions are leading to the reshaping of the country’s insurance distribution system which has seen a marked increase in the number of independent agents obtaining authorisation

Tough economic conditions in Central Europe impacted heavily on Hungary’s insurance business, producing further declines in premium income in both life and non-life business. The Hungarian figures for 2008 are the worst in the region, as Poland reported growth of 36%, Romania 23.6%, Slovakia 9.5% and the Czech Republic 4.9%, according to data by Swiss Re. Early indications are that Hungary’s GDP will decline by over 6% in 2009.