Data from the Financial Supervision Commission (FSC) as of December 2022 confirm that the insurance market in Bulgaria remained stable and achieved sustainable growth despite economic challenges, high inflation, and the security and energy supply issues caused by the war in Ukraine. Total premium income for the market amounted to BGN 3,613 million, representing an annual increase of 10.5 percent compared to 2021. Paid claims grew at a slightly faster pace of 11.3 percent, reaching BGN 1,437 million.
The non-life insurance market closed 2022 with premium income of BGN 2,988 million and paid claims of BGN 1,168 million, with both indicators rising by 10 percent year-on-year. The market structure remained largely unchanged, with motor insurance products continuing to dominate and accounting for 70 percent of non-life premium income.
Premiums from Motor Third Party Liability (MTPL) insurance totaled BGN 1,123 million, a decrease of 2.4 percent compared to 2021. Paid claims under MTPL increased by 5 percent to BGN 619 million, representing 56 percent of all paid claims in non-life insurance. Motor Hull (Casco) insurance maintained the strong growth momentum from previous years, with premium income rising by 15.5 percent to BGN 823 million and paid claims increasing by 13 percent, close to the growth rate of premiums.
Transport-related business lines were strongly influenced by the war in Ukraine and disruptions in global supply chains. Cargo Insurance recorded the highest annual growth rate in the market, with premiums more than doubling (+119 percent). The effects of the war and the refugee flows were also reflected in Frontier MTPL insurance, where premium income rose by 43 percent year-on-year.
Property insurance also demonstrated steady growth. Premium income in the “Fire and Natural Disasters” line increased by 9 percent to BGN 345 million. Within this segment, household property insurance under “Fire and Other Perils” grew by 13 percent, reaching BGN 118 million. Despite this upward trend, property insurance maintained its traditional share of around 12 percent of total non-life premiums, significantly below the weight of motor insurance. In contrast, agricultural insurance declined by 4 percent, remaining at a low level despite the increasing risks in agriculture driven by climate change.
The strong growth trend in Travel Assistance Insurance, observed over the past two years, continued in 2022. Premium income doubled year-on-year, increasing by 113 percent to BGN 159 million, while paid claims surged by 287 percent, reaching BGN 43 million.
The life insurance market remained broadly stable, with premium income of BGN 625 million as of December 2022, up 3 percent compared to 2021. Paid claims increased at a faster pace, growing by 13 percent to BGN 269 million. Risk life insurance registered a steady increase of 14 percent, largely supported by positive developments in the mortgage lending market. Pension or annuity insurance showed signs of recovery after steep declines in 2020 and 2021, recording a 31 percent increase in premiums and returning to pre-pandemic levels last seen in 2019.
The rise in deposit interest rates somewhat cooled demand for investment-linked life insurance, but these products continued to hold the largest share in the life insurance portfolio. Premium income from life insurance linked to an investment fund amounted to BGN 221 million, representing a decline of around 10 percent compared to the exceptionally strong results of 2021, but remaining well above the BGN 91 million recorded in 2019.
Health insurance continued its steady upward trend. Premium income in sickness insurance reached nearly BGN 196 million by the end of 2022, an annual increase of 24 percent, while paid claims amounted to BGN 106 million, up 26 percent year-on-year.
A notable development in 2022 was the continued increase in premium income generated by Bulgarian insurers from business outside Bulgaria. By year-end, premium income from exported insurance products reached BGN 318.8 million, representing nearly 11 percent of the total non-life insurance premium income. This marked the second consecutive year of annual growth exceeding 20 percent in this segment.
