BULGARIA: ABZ: Bulgarians insure three times less than other Europeans

29 June 2023 — Marina MAGNAVAL
The insurance penetration rate in Bulgaria is only 2.4%, while the European average is about 7.4%, which means Bulgarians insure three times less than other Europeans. The problem with the low share of insured property is especially serious, as there will be more and more natural disasters going forward, as Yuri Kopach, Chairman of the Board of Directors of ABZ said.

"The goal of the new Board of Directors of ABZ is to work on improving the regulatory framework so that, on the one hand, based on digital transformation, we enable our customers to receive ever better services faster, and on the other hand, to help the branch itself do its job better, be helpful to customers", said Yury Kopach.

The chairman of the ABZ noted that it is very important for the state to play its role in improving the insurance culture of the Bulgarians. "I was impressed that not a single representative of the state has ever asked why, given that natural disasters are increasingly occurring in Bulgaria, people do not take out insurance", he added. Yuriy Kopach emphasized that efforts must be made to increase confidence of potential customers in insurers.

"The share of insured property in our country is alarmingly low - it is in the range of 8-10% - and most of these policies are necessarily linked to credit products. The dominant share is occupied by motor insurance, which accounts for about 70% of the market", commented Veselin Angelov, member of the Board of Directors of ABZ. He noted that the share of property insurance in Bulgaria is 14%, while the average for Europe is 37%. This puts hundreds of families at risk in the event of an earthquake, flood, fire or other natural disaster, he added.