Data from the Financial Supervision Commission (FSC) as of December 2021 outlines a clear trend of dynamic market growth. For the insurance market as a whole, premium income increased by 12.7 percent, reaching BGN 3,247 million. Paid claims were 7 percent higher compared to the same period of 2020, amounting to BGN 1,295 million. This growth is significant in the context of the pandemic, restrictive measures, the decline in household living standards, and stagnation across several economic sectors. Strong performance is also evident when compared with pre-pandemic 2019: premium income in December 2021 was 11.5 percent higher than in December 2019. Particularly notable was the development of life insurance, which not only recovered from the decline of 2020 but also recorded 22 percent growth in premium income compared to 2019. In 2021, life insurance accounted for 19 percent of total premium income, compared to 17 percent in 2019 and 15 percent in 2020.
The non-life insurance market achieved premium income of BGN 2,640 million as of December 2021, an increase of 8.2 percent year-on-year. Paid claims reached BGN 1,059 million, up 4.6 percent compared to 2020. The market continued to be dominated by compulsory Motor Third Party Liability (MTPL) insurance, which accounted for just over 43 percent of total non-life premium income. Premiums in this line amounted to BGN 1,145 million, an increase of 7.6 percent compared to the previous year. Paid claims under MTPL represented more than half of all non-life insurance claims, or 56 percent, reaching BGN 691 million. Motor Casco insurance held the second-largest share at 27 percent, with premium income totaling BGN 709 million, 8.6 percent higher than in 2020.
Property insurance also showed stable growth. “Fire and Natural Disasters” ranked third with a 12 percent share of non-life premium income. Collected premiums under this line reached BGN 316 million, up 9.4 percent year-on-year, while paid claims amounted to BGN 65 million. “Fire and Other Perils” insurance also expanded significantly, with premium income of BGN 105 million, up 13.3 percent, alongside a 32 percent increase in claims. “Burglary, Robbery, and Vandalism” insurance generated BGN 22 million in premium income, 6.4 percent higher than in 2020.
The development of Travel Assistance Insurance was particularly dynamic. Premium income grew by 96 percent year-on-year to BGN 75 million, nearly double the level recorded at the end of 2019. Paid claims also increased by 40 percent compared to 2020, reaching BGN 11 million. This surge likely reflects increased consumer awareness of the importance and benefits of this insurance in the context of the pandemic.
Life insurance recorded an exceptional year in 2021. Premium income increased by 38 percent to BGN 607 million, while paid claims totaled BGN 236 million, up 20 percent year-on-year. Such significant and outpacing growth compared to non-life insurance is a rare occurrence in the Bulgarian market.
The most dynamic development was in “Life Insurance Linked to an Investment Fund,” which grew by 127 percent compared to 2020. Collected premiums reached BGN 246 million, up from BGN 91 million in 2019 and BGN 108 million in 2020. This rapid growth can be attributed to several factors, including the search for more profitable alternatives for savings management. As a result, this line accounted for 40.4 percent of total life insurance premium income in 2021, the largest share in the segment. Mixed life insurance policies ranked second with nearly 20 percent of life premium income, totaling BGN 120 million, followed by risk life insurance (covering only the death risk), which accounted for 14 percent, or BGN 85 million. Notably, claims under risk life insurance increased by 79 percent year-on-year, most likely as a direct consequence of the COVID-19 pandemic and its impact on public health and mortality.
Health insurance also continued its upward trend. Premium income grew by just over 13 percent compared to 2020, while claims increased by about 18 percent. The faster growth of claims relative to premiums once again reflects the impact of the pandemic on the health insurance segment.
