According to preliminary data from the Financial Supervision Commission (FSC), 35 Bulgarian insurers operated in 2019 – 24 in general insurance and 11 in life insurance – generating premium income of more than BGN 2.9 billion. This represents an increase of 14.8 percent compared to 2018. The year 2019 was marked by another nominal increase in premium income across almost all lines of business.
General insurance continued to dominate the market with a share of 82.9 percent. Premium income in this segment reached BGN 2,411.9 million, reflecting year-on-year growth of 15.5 percent. As in previous years, the largest shares were held by Motor Third Party Liability (MTPL) insurance with 45.2 percent and Motor Casco insurance with 27 percent. Growth in general insurance was driven mainly by a 16.4 percent increase in MTPL premium income and a 5.6 percent increase in Motor Casco. Other notable increases were recorded in Travel Assistance insurance, which rose by 61.2 percent, Third Party Liability related to the ownership and use of watercraft, which grew by 42.2 percent, and Legal Expenses insurance, which reported more than 340-fold growth. At the same time, certain business lines reported declines, including Industrial Fire insurance, down by 4.6 percent, and Third Party Liability related to the ownership and use of aircraft, down by 6.4 percent. Unlike in 2018, when low-penetration lines such as Suretyship, Credit, and Miscellaneous Financial Losses recorded growth, in 2019 only Suretyship insurance reported an increase of 332.6 percent, while Credit insurance and Miscellaneous Financial Losses declined by 17.8 percent and 8.7 percent respectively. The remarkable growth in Suretyship insurance was mainly due to its rising use as a tool for guaranteeing contractual obligations in public procurement procedures under the Public Procurement Act (PPA).
Claims paid in general insurance also increased, amounting to BGN 1,035.2 million in 2019.
Life insurance premium income reached BGN 498.9 million, recording an annual increase of 11.4 percent and outperforming the overall macroeconomic environment. By comparison, growth in 2018 was only 3.7 percent. The portfolio was dominated by Life Insurance with a share of 49.1 percent, followed by health insurance with 21.9 percent and Unit-Linked Life Insurance with 18.3 percent. The main drivers of growth were health insurance premiums, which increased by 54.3 percent year-on-year, and Unit-Linked Life Insurance, which rose by 18.5 percent. Paid claims in life insurance reached BGN 177.8 million.
Insurance density also reported significant growth, reaching BGN 413 per capita – the highest level recorded in Bulgaria’s modern history.
