Are you sure?

Rising households savings, declining life insurance market

While household savings are rising, self-provision and financial consciousness is getting more important, insurers’ revenues decline, recent data of the Hungarian Insurers Association (MABISz) shows.

In the first quarter of 2011, life insurance revenue was HUF 114.1 billion, a 3% percent drop year-on-year. At the end of March, there were 100,000 fewer policies than a year earlier. This drop however is also due to that many new insurance policies could not offset those that have expired. "The declining or stagnating market shows that people’s confidence in insurers has not yet been restored,” said Csaba Bunghardt, CEO of Money&More, an independent financial consultancy.

The reduction in the number of life insurance policies obtained is a general phenomenon across Europe. According to a recent survey that involved several Western European countries including Germany, France, the Netherlands or Austria, only 11% of the polled found that they had enough savings to spend in the case of unemployment or sick leave. Only 26% believed that, in the event of the sudden death of the breadwinner, the state could provide assistance for the family.