According to him, the share of life insurance in the market portfolio is still low, but this also means high potential for future development. He noted that non-life insurance is growing by 13%, with motor insurance continuing to dominate. The latest data for 2024 indicate a significant growth of 16% in the Motor Hull segment. This is due to increasing car prices over the years, which leads to an increase in premiums, without any changes in the tariff schedule, explained Nikolay Stanchev.
CEO of Generali Bulgaria added that this trend is an issue not only in Bulgaria, but also in all markets in Central and Eastern Europe. This LoB also has a higher penetration, mainly due to replacement of the car fleet in Bulgaria and that people insure new cars more than old ones. Nikolay Stanchev also added that the price of motor civil liability insurance is changing at a much slower pace than inflation growth, which means that premiums are not high.
"Bulgaria is a territory where many natural disasters occur. If such a thing happens, the burden will be borne either by the state budget or by the affected households themselves, instead of insurers. However, barely 10% of homes in Bulgaria are insured, which is a serious problem", Nikolay Stanchev emphasized, speaking about home insurance. A large part of home insurance policies is still concluded in connection with the requirements of mortgage loans. A smaller share is purchased voluntarily, even though home insurance prices are affordable.
“Increasing the share of insured property – household property, corporate property, small and medium-sized enterprises, agricultural insurance – is among the top priorities of ABZ and we are developing initiatives in this direction”, explained Nikolay Stanchev.
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