The transition to the euro in Bulgaria will not, by itself, lead to higher insurance prices, as the type of currency is not a factor in calculating insurance premiums. The key factors influencing insurance pricing are claims experience in each business line, the average size of compensations, and the frequency of insured events. This was explained by Veselin Angelov, member of the Management Board of the Association of Bulgarian Insurers (ABZ), in an interview for the program “Revision” on NOVA NEWS. In the interview, Angelov commented both on the technical aspects of the euro changeover and on the state of the Bulgarian insurance market.
He clarified that the new currency will not alter the terms of existing insurance contracts—the only difference will be that sums will be displayed in euro instead of lev, with automatic conversion at the official exchange rate. No additional actions are required by policyholders. Insurers already apply dual display of premiums, installments, and insured amounts, giving consumers the opportunity to become accustomed to the euro and remain fully informed about their policies’ financial parameters.
“The euro will make the market more attractive, provide easier access to different financial instruments, and support the sector’s development. Overall, the effect will be positive,” Angelov stated.
At the same time, he stressed that insurance remains significantly underused in Bulgaria. Only around 10% of households are insured, while life insurance covers merely 2–3% of the population. Despite the availability and low cost of insurance, many still do not recognize it as the only instrument that provides financial assistance in times of crisis.
Angelov emphasized that insurance should not be viewed as an unnecessary expense but as essential protection against risks that can seriously destabilize household finances. Instead of choosing solely based on price, consumers should start with their real needs: income levels, assets, critical sources of revenue, and how these can be protected.
Public attitudes also play a role. “According to ABZ research, every third Bulgarian believes that insurers do not pay claims. Yet, data shows that over 90% of claimants actually receive compensation,” he explained, noting that most refusals result from claims on risks not covered by the policy or documentation issues with property insurance.
In conclusion, Angelov stressed that the growth of the insurance sector depends on higher living standards and improved financial literacy. For now, Bulgaria lags behind European averages, with insurance penetration roughly three times lower than the EU level. This underlines the need for stronger consumer communication, institutional efforts, and targeted reforms.
Watch the full interview (in Bulgarian)
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