Catastrophic risks in Southeastern European countries are increasing, and financial instruments engaging both governments and the insurance sector are needed to manage and cover the resulting damages, commented the participants during the regular meeting of the SEE Regional Network on Disaster Risk Insurance and Risk Sharing, held on October 27 in Bucharest. Milena Kostadinova, Head of the Reinsurance and International Programs Directorate, participated on behalf of the Bulgarian Insurance Association (ABZ).
This is the second event of the climate forum following the announcement of the initiative on March 25, 2025, by the Regional Cooperation Council (RCC). The organization, established in 2008 in Sofia, aims to strengthen cooperation among Southeastern European countries in addressing various common problems, including the consequences of disasters and climate risks. The host of the forum in Bucharest was the Romanian Financial Supervisory Authority (ASF). The event was attended by representatives of regulatory authorities, insurance and reinsurance associations from Southeastern Europe, as well as sector partners, with whom participants discussed progress and next steps in strengthening financial protection against disasters.
“Regional cooperation in Southeastern Europe is key to making catastrophe insurance adequate and accessible. Through public-private partnerships, cooperation between regulators, all-in-one banking solutions, transparent and well-calculated processes as part of the SEE2030 Strategy, we can strengthen disaster resilience across the entire region”, said RCC Deputy Secretary General Yümit Ergezer during the opening. The SEE2030 Strategy was adopted in June 2021 during an RCC meeting in Antalya, Turkey, and includes all 13 countries in the Southeastern European region working together for sustainable development.
Milena Kostadinova spoke about the Bulgarian experience, the efforts of insurance companies to cope with the consequences of climate risks, the increasing frequency of disasters in Bulgaria, and opportunities for improving protection. She noted the still low level of insurance protection in Bulgaria against climate risks and disasters, as well as the progress of the Bulgarian sector in raising insurance culture and consumer trust. According to data from the Financial Supervision Commission (FSC), as of the end of the first half of this year, premiums collected from all property insurance amounted to nearly €147.24 million, a 3.97% increase, compared to the same period last year. According to insurance companies and statistical data, Bulgaria has one of the lowest levels of property insurance coverage in Europe – only 8-10% of properties in the country are insured. Insurance penetration in Bulgaria is just over 2%, almost unchanged in recent years. This is one of the lowest levels in Europe. In developed countries, penetration reaches 10%.
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