The insurance market in Bulgaria is set to see sustained growth in 2025, with premium income growing by around 20% y-o-y and paid claims by approximately 25%. This demonstrates the real and growing contribution of insurers to the financial stability of businesses and households, according to Nina Kolchakova, Secretary General of the Association of Bulgarian Insurers (ABZ).

According to her, the growth in paid claims related to fires and other natural disasters is particularly pronounced, which is a clear indicator of the growing role of insurance as a risk management tool, especially in the context of climate change. At the same time, premium income in this segment is increasing by about 20% - a pace comparable to the overall market dynamics.

Strong growth is also observed in medical insurance, which reflects both the growing interest of employers in offering health insurance as part of the social package and the effect of medical inflation, she added.

The low level of property insurance remains a serious challenge not only for Bulgaria, but also for the entire region of Southeastern Europe – from Slovenia to Turkiye. Among the main factors are low insurance culture, lack of traditions and distrust in insurance.

In Bulgaria, the key focus is currently on information and educational campaigns conducted by the Association of Bulgarian Insurers. According to Nina Kolchakova, the misconception that the state is responsible for full compensation in the event of natural disasters remains widespread. State aid can help initially deal with the crisis, but it cannot restore property to its pre-disaster condition, which is the role of insurance. Another factor hindering consumption of insurance services is the still low level of awareness about property insurance. The Secretary General of the Association of Bulgarian Insurers emphasized that property insurance is not expensive – its annual price is usually in the range of BGN 100–300, which is affordable.