Interviewed by BTA, Nikolay Stanchev, Chairperson of the Association of Bulgarian Insurers, said insurance premiums could rise in the coming months if certain factors changed.
He cited factors related to increasing claims, including the rising frequency of natural disasters affecting property, motor and agricultural insurance, the growing number of road accidents in motor insurance, or higher morbidity in health insurance.
Another group of factors is linked to the economic environment, including overall inflation and rising staff costs. Higher prices for spare parts and repair services affect pricing trends in motor insurance. In health insurance, rising medical service costs have a significant impact. “If any of these factors change, they could affect the prices of the insurance products,” Stanchev said.
Data for the first quarter show sustained growth while maintaining the usual market structure. Motor insurance remains the dominant segment, property insurance is developing at a moderate pace, and health insurance is the most dynamic, mainly driven by rising medical service prices.
The total volume of gross written premiums in non-life insurance exceeded BGN 1.5 billion, about 24% higher than the first quarter of 2024. Some of this growth is driven by insurance policies that Bulgarian companies write in other EU countries under the freedom to provide services, primarily in motor third-party liability insurance.
However, less than 10% of buildings in Bulgaria are insured, and most likely less than 10% of agricultural land.
Motor insurance remains the main driver of the market. Casco premiums increased by around 16%, maintaining a stable double-digit growth rate. Property insurance recorded a 9% increase. Agricultural insurance showed stronger growth. The new co-financing scheme, covering 70% of the insurance value, has led to a rise in interest from farmers. At the same time, the trend of more frequent natural disasters, particularly hailstorms and heavy rainfall, continues and is likely to influence the level of claims during the year.
Life insurance also showed stable growth of around 11% year-on-year, with premiums reaching BGN 210 million. Health insurance remained most dynamic, with a 21% increase and written premiums of BGN 115 million as of March 2025. A significant portion of this growth is attributable to higher medical service prices.
Asked about the benefits and challenges for the insurance sector of adopting the euro on January 1, 2026, Stanchev said there are several positive effects for both industry and consumers, as well as the economy as a whole. For companies, this means a more stable and predictable financial environment, which is particularly important for life insurance due to its long-term nature. Transitioning to a single currency eliminates additional foreign exchange risk for euro-denominated assets, such as bonds, leading to improved solvency for insurers. Costs associated with currency conversion and exchange will be reduced, and financial flows between Bulgarian and European participants will become more transparent.
The challenges for insurance companies are mainly related to adapting systems and processes to the new currency – changes which require substantial technological and organizational resources. Stanchev said this process started several years ago, and the sector is now fully prepared for a smooth transition and normal service to clients following the adoption of the euro. Insurance Premiums May Rise in Coming Months Amid Changing Factors, Says Association of Insurers Chairperson THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2025-10-19 11:06:55 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
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