BULGARIA: ABZ: people are spending more on home insurance

30 May 2024 — Marina MAGNAVAL
According to data from two consecutive surveys by MoitePari.bg and ABZ, within one year the share of people who purchased home insurance has increased by 7%, said Nina Kolchakova, General Secretary of the ABZ, Association of Bulgarian Insurers reports.

"The increase is due to the fact that we are witnessing more frequent natural disasters as a result of climate change", she explained. But Bulgaria still has one of the lowest levels in home property insurance compared to all neighboring countries with a similar climate. As a positive trend the General Secretary of the ABZ emphasized an increase in amounts that people spend on home insurance – if last year Bulgarians were willing to spend BGN 80 (~EUR 40) as an annual insurance premium for home property, this year the amount is around BGN 150 (~EUR 76).

Data from the survey by MoitePari.bg and ABZ show a 7% growth in one year (from 59% to 66%) of people who have home insurance. At that, most of the respondents (88%) purchased it on their own initiative. Only 12% bought a policy because of a bank’s requirement related to a mortgage loan.

The survey also provides for the reasons why people buy property insurance: financial stability is the leading personal reason for 65% of respondents, frequent natural disasters motivate 8% of consumers to seek insurance protection, and 6% mentioned affordable prices as a reason.



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