According to her, the reason is mainly the lack of a conscious need. However, there is a trend towards increasing insurance penetration in this LoB, but it is happening at a very slow pace.
It is noted that there are significant differences in the share of insured properties depending on their type. Homes in cities are mainly insured, driven by the mortgage market. In small towns, villages, the share of insured properties is insignificant.
"Nearly 90% of Bulgarians live in their own homes and yet they do not insure them, and in the majority of cases this is their most valuable asset. Paradoxically, more cars are insured than homes. At least 30% of cars have comprehensive motor insurance, and less than 10% of properties, and the loss of a roof over one's head will result in much more serious financial shocks for a household", Nina Kolchakova emphasized. The main reason people avoid insurance is the fear that in the event of damage they will not receive compensation, however, according to statistics, about 95% of the damages are paid.
Regarding agricultural insurance, Nina Kolchakova pointed out that more and more farmers are purchasing insurance. Their concerns are related to the fact that insurers do not offer coverage for some risks, such as early spring frosts before April 20. The Secretary General of the Association explained that the ABZ and the Ministry of Agriculture are discussing various options for addressing the problem with early frosts and drought.
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