Bulgaria is increasingly affected by climate-related disasters, with wildfires in 2024 and 2025 placing the country among the EU leaders in terms of fire intensity. In this context, property insurance remains significantly underestimated, especially in high-risk areas. Only about 10% of properties in the country are insured, most of which are urban homes linked to mortgage loans, commented Veselin Angelov, member of the Management Board of the Association of Bulgarian Insurers (ABZ), on Bloomberg TV Bulgaria.
In rural areas, insurance penetration drops to just 1–2%, even though wildfire risk is highest there. Angelov attributes the low uptake to weak financial literacy and a lack of awareness about the growing threat of natural disasters. He emphasized that instead of relying on state aid, people should proactively seek protection through insurance. Basic home insurance policies in Bulgaria are very affordable, yet often overlooked. Coverage typically includes fire and natural disasters for buildings, with the option to extend protection to household contents, theft, earthquakes, liability and others. Angelov warned that consumers often focus solely on price rather than selecting coverage that matches their specific needs of protection. He explained that national policies should be developed to address the gap in insurance protection, They could include tax incentives, public-private catastrophe pools, or educational initiatives to raise awareness.
Angelov also noted that the market remains stable, with growing interest in health insurance, investment-linked life insurance, and cyber risk protection. Despite affordable pricing – a home policy in Bulgaria can cost around €600–700 annually, compared to several thousand dollars in the U.S. – many consumers still prioritize car insurance over protecting their homes. According to Angelov, this is due to the more visible frequency of road accidents. However, property-related disasters, though less frequent, can be devastating without adequate insurance coverage.
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