BULGARIA: ABZ: in 2023 the market continued to be dominated by motor insurance

10 January 2024 — Marina MAGNAVAL
The insurance sector in Bulgaria experienced sustained growth in 2023, and as a result of the pandemic, people are increasingly thinking about protecting their health and life, not just their cars, Ivana Dimova, a member of the Board of Directors of the ABZ (Association of Bulgarian Insurers) believes.

According to her, in 2023, the market structure continued to be dominated by motor insurance, which holds a share of about 70%, and the focus on one business line can suppress the development of other market segments. However, there is a positive trend in customer preference for life and health insurance after the pandemic.

Ivana Dimova noted that home insurance penetration is low, hovering around 10%. For comparison in countries close to Bulgaria in terms of development, it is much higher - in Croatia it is about 25%, in Greece and Turkey, respectively 14% and 15%, and on average in Europe the penetration reaches 30%. Unfortunately, in Bulgaria natural disasters do not lead to a higher demand for insurance protection, people do not massively take out insurance for their properties.

According to the member of the Board of Directors of ABZ, the challenges for 2024 include the need for greater awareness, educational programs, and addressing some prejudices regarding insurance. The sector has a huge potential for development and generating benefits for society, which can be realized through cooperation between the Association of Insurers, insurance companies, the media, and educational institutions. Stimulating market development through greater public awareness is essential for the sustainability and successful future of the insurance sector in Bulgaria, as Ivana Dimova emphasized.