Interest in property insurance is growing – market data for 2025 shows a premium revenue increase of over 20%. This trend is also confirmed by a national representative survey conducted in May on attitudes towards insurance. The data shows that the share of people with property insurance has increased from 16% in 2020 to 31% in 2026, said Nikolay Stanchev, Chairman of the Association of Bulgarian Insurers (ABZ), in the studio of "Bulgaria Morning," Bulgaria ON AIR.
The survey shows that more people perceive insurance as a tool for managing their own risks. There is also a significant increase in trust in the insurance sector. However, the problem of consumer awareness remains – for example, more than two-thirds of respondents believe that insurance policies are difficult to understand, which is why people do not take them out, explained Nikolay Stanchev. Therefore, insurers must find ways to make things easier for their clients, explaining the terms of policies in a clear and accessible way. On the other way, it is important for consumers to ask insurers questions – what are the coverages, what happens in the event of a claim. If this is observed, then clients will be satisfied, said Nikolay Stanchev, and explained: "In this regard, the data from the survey are indicative – over 80% of respondents who received compensation are satisfied with its amount. And only 5% of those who filed a claim were rejected, with the reasons mainly related to non-compliance or failure to comply with the terms of the policy, which is again directly related to consumer awareness." However, the data also shows a significant "discrepancy" between real consumer experience and public perceptions. For example, more than half of respondents believe that insurers are not fair when paying compensation. However, when they talk about their own experience, the situation is completely different.
Nevertheless, a positive change in public attitudes towards insurance and the level of awareness is being observed, but the process is slow, and its development is influenced by many factors. "Insurance literacy is key because it helps people realize that there is no more effective way to protect their property, health, and financial security than through insurance. For example, insuring your home is completely affordable – the premium for an average apartment is around 50-60 euros per year. In other words, for a relatively small amount, you secure yourself against heavy losses. This is also a matter of consumer awareness," explained Nikolay Stanchev. Therefore, the ABZ is strongly engaged in the topic of insurance literacy, constantly conducting various information campaigns. Currently, a campaign dedicated specifically to home insurance is underway, and its motto is "Don’t wait for the disaster. Insure your home now."
Nikolay Stanchev advised consumers not to base their choice of home insurance solely on price, but rather to focus on the coverages. He shared that on the issue of price, the survey again revealed differences between general attitudes and practical experience. For people without insurance, price is the biggest barrier, which is probably due to unawareness of average price levels. When it comes to purchasing a policy, coverages, the reputation of the insurer, and the digitalization of processes become more important. Price remains the leading factor for only 12% of respondents.
Usually, people check market offers through digital channels, and then meet with their insurer. This is so they can ask their questions, discuss all the details that interest them, and select the coverages in the policy that correspond to their individual needs. The process begins with the type of property to be insured – whether it is an apartment or a house, what the location is, whether only the building or also the property in the home will be insured, and an assessment of what risks they want to protect themselves against, with additional coverages such as theft, liability to third parties, and others being added to the basic coverage – fire and natural disasters.
The Chairman of the ABZ also commented on the positive trend in agricultural insurance. In the last two years, there has been a significantly higher interest in this type of insurance, stimulated by the support mechanism through the State Fund "Agriculture," which subsidizes up to 70% of the insurance premium. Nevertheless, the share of insured agricultural land, according to various estimates, is around 20%. Nikolay Stanchev called on agricultural producers to take advantage of the opportunities for insurance protection, as in the event of severe natural disasters, it often proves decisive for the preservation of the farm. He gave the example of an agricultural producer whose crop was completely destroyed by hail, but thanks to the insurance compensation received, he managed to restore his production. It is precisely in such situations that the real value of insurance is seen – it not only compensates for losses suffered but also gives farmers a chance to preserve their farm, invest in the next crop, and continue their activities.
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