On January 27, ABZ held an online discussion titled “On Life Insurance: Individual Benefits and Market Development”, attended by representatives of the media and the insurance sector. The event was part of ABZ’s campaign “On Focus: Life Insurance”.
The topics were presented and commented on by Veselin Angelov, Member of the Management Board of ABZ and Executive Director of Allianz Bulgaria Life Insurance Company, Rositsa Velinova, Executive Director of CCB Life JSC, and Andrey Georgiev, Executive Director of Euroins Life Insurance Company JSC.
In his presentation, Veselin Angelov outlined the main benefits of life insurance: financial security, protection from risks during working age, higher quality of life in later years, providing for one’s children, and access to tax incentives. Using a specific example, he illustrated the financial impact on a household budget of having – or not having – life insurance in the event of an accident.
Another key focus was the development of the life insurance market in Bulgaria compared to Europe. According to 2019 data from Insurance Europe, life insurance holds a 56% market share in total premiums across Europe and a 63% share in total claims paid. In contrast, motor insurance – dominant in Bulgaria – represents only 12% of premiums and 10% of claims on average across Europe.
In Bulgaria, the most significant growth was recorded in unit-linked life insurance products – a 132% year-on-year increase – likely driven by the search for more profitable savings alternatives amid near-zero interest rates on bank deposits. At the same time, the pandemic increased awareness of the need for insurance protection for our health and lives. Unit-linked products offer this combination: coverage for major health and life risks alongside potentially higher investment returns. Risk-only life insurance (death benefit only) also grew by 12% year-on-year, likely driven by the rise in lending and greater understanding of the importance of this coverage. This may also explain the 11% annual growth in health insurance.
During the ensuing discussion, participants explored topics such as unit-linked life insurance as a tool that provides both risk protection and investment opportunities, as well as life insurance linked to loans and various consumer concerns.
One of the core messages of the discussion was that informed decision-making and advance research are essential to consumer satisfaction with life insurance – and all types of insurance products. The following practical recommendations were shared:
Finally, we often spend significant time researching before purchasing material goods – such as a car or a phone. We should dedicate even more attention and care when selecting a life insurance or other insurance product, because this choice directly affects our own and our family’s quality of life.
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