site.btaOnly 2% of Homes Insured against Disasters despite Service's Affordability - Insurers

Home contents insurance prices are affordable, as they range between BGN 5 to BGN 17 a month or between BGN 50 and BGN 200 a year, the Association of Bulgarian Insurers (ABI) said. The experts said that despite natural disasters becoming more frequent and causing more damage, the proportion of insured properties in Bulgaria remains marginal, only 2% over the last 40 years, far below the European average, 22%. This has negative consequences for both owners and the public as a whole, ABI said.

ABI specified that prices depend on conditions such as the sum insured or the policy limit, the risks covered and the type of property among others.

A detailed analytical report entitled "Insurance in Bulgaria - Economic Footprint and Development Challenges", prepared by the Institute for Market Economics, was presented here on May 11, 2023. According to its data, the Bulgarian insurance market clearly differs from other European markets with motor insurance having strong dominance over other types, mainly due to the compulsory third-party insurance for drivers.

The latest data released by the Financial Supervision Commission near the end of the second quarter of the year show that gross written premiums realized by insurers for property insurance against fire and other disasters totalled BGN 225.3 million. This compares with BGN 835.5 million for motor third-party liability insurance.