Nina Kolchakova, Secretary General of the Association of Bulgarian Insurers (ABZ), stated in an interview for BNR – Radio Sofia on 27 May 2025: “The insurance sector in Bulgaria is fully prepared for the adoption of the euro. It is entirely committed to ensuring a smooth process while safeguarding the rights and interests of consumers.” ABZ and its member companies are actively providing information to citizens and conducting awareness campaigns on the subject.
Kolchakova emphasized that the introduction of the euro will not lead to any increase in insurance prices. “Currency itself is not a factor in insurance pricing. Other parameters have an impact – such as the level of risk taken by the insurer and broader economic factors. For instance, in recent years there has been a rise in motor Casco insurance premiums, but this is due to higher prices of spare parts and labor costs.”
She explained that premium levels significantly lag behind inflation. Some lines of business show almost no price movement. “For example, premiums for home insurance have remained at the same level in recent years despite inflation, and they are among the lowest in Europe.”
Home insurance policies are fully accessible to households, with annual premiums ranging from around BGN 100 to BGN 200–300, depending on the characteristics of the property, the chosen risk coverage, and the limits under the policy. Adding additional risks such as earthquake or theft, or increasing coverage limits, will influence the price. “Cheaper policies inevitably provide a lower level of protection. When choosing a policy, needs – not just price – should be the leading factor,” Kolchakova advised.
Despite the affordability of property insurance, only about 10% of homes in Bulgaria are insured — far below the European average, and even lower than in neighboring countries such as Romania, Greece, and Serbia, where the share is around 20%. This low penetration poses not just an individual but a significant social risk, since in the event of a disaster households and small businesses bear the losses entirely themselves instead of receiving compensation from insurers. Still, Kolchakova noted a positive trend: the market and interest in property insurance are growing, albeit slowly. This is driven both by rising insurance literacy and by increasing awareness of risks to property due to more frequent natural disasters.
ABZ studies the reasons behind the low insurance penetration in order to address them effectively. Many are linked to persistent myths, such as “insurance is expensive” or “insurers don’t pay claims.” According to ABZ surveys, between 30–50% of people say they do not buy insurance because they believe they would not be compensated. However, less than 5% of policyholders have actually encountered problems receiving claims payments. These cases are typically due to claims being filed for risks not covered under the policy or because the compensation amount was lower than expected — both directly related to the terms of the policy. “Insurers strictly adhere to the agreed conditions,” Kolchakova underlined.
This is why informed decision-making is essential. “When buying insurance, people should do it consciously and ask the right questions – which risks are covered and which are not, what the coverage amounts are, i.e. the potential compensation, and what the claims process involves. If clients are well informed about their policy conditions, they can avoid possible disappointments regarding the level of protection,” she said.
Kolchakova also noted that digitalization has advanced rapidly in the insurance sector, accelerated by the pandemic. Today, insurers offer a wide range of digital services — online policy issuance, digital claims registration and tracking, and remote customer service via electronic channels. “Digital solutions have become a sustainable direction for development, particularly valued by younger consumers,” she added.
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