Page 17 - Insurance Times March 2022

International

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General insurance indus- not covered by the public health insur- tain its positive growth momentum
ance system. The segment grew by over the next five years driven by
try in Australia to reach 0.7% in 2021 against a decline of 0.2% strong economic recovery. The profit-
$73.6bn in 2026 in 2020, supported by increased pre- ability of insurers, however, will remain
The general insurance industry in Aus- mium rates by the government amidst clouded due to escalating losses from
tralia is projected to grow at a com- rising medical costs. PA&H insurance is increased frequency of natural calami-
pound annual growth rate (CAGR) of expected to grow at a CAGR of 4.5% ties and rising medical costs.”
during 2021-2026.
6.4% from AUD73.29bn ($54.6bn) in
2021 to AUD99.87bn ($73.6bn) in Motor Insurance is the second largest Hungary’s insurance in-
2026, in terms of direct written premi- segment, accounting for 24.2% of gen- dustry to reach $5.67 bil-
ums (DWP), according to GlobalData, eral insurance DWP in 2021. After slow-
a leading data, and analytics company. ing down in 2020, the segment grew lion in 2025, driven by
GlobalData exects strong economic by 6.0% in 2021, backed by growth in economic recovery
recovery, increasing vehicle sales, and motor vehicles sales, which grew by Hungary’s insurance industry is pro-
14.5%. Motor insurance is expected to
growing demand for natural-cata- jected to grow at a compound annual
strophic (nat-cat) policies to support grow at a CAGR of 6.4% during 2021- growth rate (CAGR) of 6.3% from
2026.
the growth of the Australian general HUF1,204.86 billion ($3.91 billion) in
insurance industry during the review Property insurance is the third-largest 2020 to HUF1,635.5 billion ($5.67 bil-
period. segment with 22.3% share in 2021. The lion) in 2025, in terms of gross written
Md Shabbir Ansari, Senior Insurance segment grew by 9.5% in 2021, driven premiums (GWP), according to
Analyst at GlobalData, comments: by the demand for natural catastro- GlobalData, a leading data, and
phes policies. Increased number of analytics company.
“Australian economy is expected to
grow by 3.8% in 2021 as compared to natural calamities in the last two years, According to GlobalData, Hungary’s
such as hailstorms, bushfire and floods,
a decline of 2.5% in 2020. In line with insurance industry is poised for a
the economic growth, general insur- have prompted insurers to increase the strong recovery in 2022 driven by gov-
ance industry in Australia grew by 6.7% price for these policies. Property insur- ernment support measures for eco-
in 2021 as compared to the 4.0% ance is expected to grow at a CAGR of nomic recovery and buoyant consumer
growth in 2020.” 7.2% during 2021-2026. confidence.
Personal accident and health (PA&H) The remaining 16.8% share will be ac- Rakesh Raj, Senior Insurance Analyst
insurance is the largest segment in the counted by Liability, Financial lines, at GlobalData comments: “After con-
Marine, Aviation, and Transit (MAT),
Australian general insurance industry, tracting by 4.7% in 2020, the Hungar-
and Miscellaneous insurance.
accounting for 36.7% of DWP in 2021. ian economy is expected to grow by
PA&H policies in Australia are mostly Ansari concludes: “Australian general 7.4% in 2021. The recovery in the
sold as riders or additional insurance insurance industry is expected to main- economy, as well as government-initi-

The Insurance Times, March 2022 17