The insurance market in Bulgaria will maintain a stable pace of development and growth in 2025, with motor insurance remaining the main driver, and health insurance continuing to develop most dynamically, stated Nikolay Stanchev, Chairman of the Board of the Association of Bulgarian Insurers (ABZ).

According to the ABZ Chairman of the Board: total GWP in general insurance is about 24% more than in the same period in 2024. Part of this growth comes from insurance that Bulgarian companies conclude in other EU countries under the freedom to provide services (mainly civil liability of vehicle drivers). Motor insurance remains the key market driver as Motor Hull is growing by about 16%, maintaining a stable double-digit pace. Property insurance is growing by 9%. A more tangible revival is observed in agricultural insurance – the new premium co-financing scheme, which covers 70% of the insurance cost, has led to an increase in interest from agricultural producers. At the same time, the trend towards more frequent natural disasters continues - especially hail and heavy rains, which will likely have an impact on the amount of damage during the year. There is also stable growth in life insurance - around 11% y-o-y, however, penetration in this LoB remains relatively low. Health insurance continues to develop most dynamically - with a growth of 21% as of March 2025. A significant part of this growth is explained by the increased prices of medical services.

The effects of introducing the euro will be positive for both the insurance sector, as well as for consumers and the economy, Nikolay Stanchev emphasized. "Transition to the euro means a more stable and predictable financial environment", he said. Technological preparation for this change began several years ago and the sector is ready for a smooth transition and normal customer service after the introduction of the euro.

Speaking about low insurance penetration in property and agroinsurance, the ABZ Chairman of the Board noted that less than 10% of buildings in Bulgaria are insured, and most likely less than 10% of agricultural land. This creates significant deficits not only for households and businesses, but also for the entire economy. Nikolay Stanchev pointed out that the problem is complex and addressing it requires joint work between insurers, the state, regulators, agricultural and employer organizations.