One of the key steps for easier adaptation of consumers to the new currency is introduction of the so-called dual indication of prices - in BGN and EUR. This period will end 12 months after the date of introduction of the euro. The aim is to ensure transparency, easy comparison of prices and to facilitate consumer adaptation.
Nikolay Stanchev stressed that no increase in insurance prices is expected due to the introduction of the euro and explained: “We are perhaps the most regulated sector in the economy. And even now, before we entered the eurozone, we have very strict processes for changing prices of our products”, he said.
Regarding trends in the sector, Nikolay Stanchev pointed out that motor insurance continues to dominate, occupying over 70% of the market. Penetration in the property insurance remains low, which means that citizens and small businesses do not insure their properties en masse. The situation is similar in agroinsurance: about 10% of properties and about 15% of arable land in the country are insured.
According to the ABZ Chairman, agricultural insurance is expected to develop positively this year due to introduction of a new scheme with European funding to subsidize premiums of agricultural producers. Also, health insurance has high potential for development as interest in this product is increasing.
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