In an interview for the programme “Before Everyone” on BNR-Horizont on 8 January, Nikolay Stanchev, Chair of the Management Board of ABZ, commented on key issues related to the insurance market in Bulgaria. The discussion covered topics such as the low level of property insurance, the factors affecting insurance pricing, the impact of the euro adoption, and progress in the development of the bonus-malus system.
“A very small portion of property in the country is insured, especially when it comes to households, while at the same time natural disasters are becoming more frequent,” stated Nikolay Stanchev, Chair of the Management Board of the Association of Bulgarian Insurers.
“The problem is that when property is not insured, damages are borne either by the households themselves or by the state, which is highly inefficient,” he emphasized, calling on people to insure their property.
The main reason for the lack of insurance is the attitude that “it won’t happen to me.” Other factors include reliance on the state and the perception that insurers do not pay claims. “However, this does not reflect reality—denials account for around 5% and are most often due to a lack of coverage, meaning the client did not purchase the relevant protection,”noted Stanchev.
He also pointed out that many people are unaware that home insurance prices are entirely affordable for households—around BGN 70 to 150 per year. “When taking out insurance, it is important for a person to understand exactly what it covers and first identify their own needs,” added the ABZ Chair.
He also addressed another topic of importance to consumers—the introduction of the bonus-malus system. Stanchevnoted that the Financial Supervision Commission is currently drafting regulations to govern how insurers will access information on drivers’ claims. While the system is unlikely to start on 1 February, it is expected to be implemented within the year.
With the introduction of the bonus-malus system, insurers will have access to the full history of claims for their clients, regardless of which company previously provided coverage. “There will be no uniform rules—each company will use the information according to its own methodology, which will be publicly announced,” he clarified.
Regarding the pricing of compulsory Third-Party Liability insurance, Nikolay Stanchev emphasized that currency is not a pricing factor and that the adoption of the euro cannot be a reason for a price change. Prices are primarily influenced by claims experience and inflation, while the market remains highly competitive, and pricing policy is determined by each individual company.
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