Growing interest in property and agricultural insurance, developments in the Motor Third Party Liability (MTPL) insurance market, proposals for seasonal motorcycle insurance and preparations for the introduction of the bonus-malus system were among the main topics discussed by Nikolay Stanchev, Chair of the Association of Bulgarian Insurers (ABZ), in an interview for the Before Everyone programme on Bulgarian National Radio (BNR) on 10 July 2026.
Nikolay Stanchev noted that the growing interest in property insurance has been one of the most pronounced positive trends in the insurance market in recent years. More and more homeowners recognise the need to protect their homes. This trend is driven by the increasing frequency of natural disasters, extensive media coverage of the issue and ABZ's consistent efforts to improve consumer awareness.
The trend is also reflected in market data. Last year, premium income from property insurance increased by more than 24%. Similar findings emerged from ABZ's nationally representative survey conducted in 2026, which showed that the share of people who currently have or have previously had property insurance increased from 16% in 2020 to 31% in 2026.
According to Nikolay Stanchev, property insurance premiums have not increased significantly, and where increases have occurred, they have been minimal and broadly in line with inflation.
“What has increased—and what should increase—is the sum insured, because property values have been rising over the years. My advice to consumers is to insure their homes for a higher insured value rather than choosing inadequate sums insured,” he said.
Insurers provide reference values for different types of residential property, although some products are based on fixed limits for individual coverages, which may differ from those reference values. For this reason, consumers should carefully review not only the risks covered by the policy but also the sums insured for each type of cover to ensure that the policy provides protection appropriate to their needs.
Nikolay Stanchev also highlighted the positive development of agricultural insurance. A key driver has been the support scheme administered by the State Fund Agriculture, which subsidises up to 70% of insurance premiums. Nevertheless, between 25% and 30% of the funds allocated under the programme remain unused.
Commenting on the withdrawal of the licence of DallBogg: Life and Health Insurance Company, Nikolay Stanchev stated that consumers face no risk regarding access to MTPL insurance.
“There are currently 15 insurers actively offering this type of insurance, so there are no capacity constraints or operational issues that would prevent these customers from obtaining cover,” he said.
At the same time, he warned that cases of this kind inevitably affect the reputation of the insurance sector as a whole, since “reputation and trust take many years to build but can be damaged very quickly.”
The interview also addressed proposals for introducing seasonal MTPL insurance for motorcycles. Nikolay Stanchev noted that the current legislation already allows such policies, but in practice they are rarely offered because there is little economic rationale for doing so. Under Bulgarian law, a registered vehicle cannot legally remain without valid MTPL insurance. This means that once a seasonal policy expires, motorcyclists would have only two options: either deregister the motorcycle or purchase a new insurance policy.
According to Nikolay Stanchev, there are unrealistic expectations that seasonal insurance would lead to substantially lower premiums, whereas there is no economic basis for such an assumption.
“Although the policy is currently issued for one year, the vast majority of claims occur during the active motorcycle riding season. Even if the policy were seasonal, that period would remain exactly the same, and claim costs would be broadly similar to those today. There is therefore no economic logic for the premium to be significantly lower,” he explained.
The Chair of ABZ also commented on the forthcoming introduction of the bonus-malus system. He noted that there are no technical obstacles to its implementation and that only the adoption of two implementing ordinances remains pending. Insurers already apply similar risk-based principles when underwriting both MTPL and motor own damage (Casco) insurance. The new system will enable every insurer to access a driver's insurance history regardless of which insurer they were previously insured with.
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