More and more people are taking out property insurance, but the share of insured homes in Bulgaria remains low and is mostly concentrated in urban areas, noted Veselin Angelov, ABZ Management Board Member and CEO of Allianz Bulgaria in an interview for BNR-Blagoevgrad, broadcast on April 29, 2025. He pointed out that motor insurance still dominates, largely because traffic accidents occur more frequently, and consumers react accordingly by purchasing coverage. Similar patterns can be seen across Eastern European markets, where motor insurance holds the largest share.
“Although every year society suffers from various natural disasters, many people continue to rely on luck. In reality, the most effective mechanism for financial protection is insurance. This way we transfer the financial risk of losses from ourselves to the insurer. In other words, it is not us who pay for the damages, but the insurer,” Angelov explained, stressing that relying on government assistance is not a sound strategy, as such support is limited in scope and not always granted.
He acknowledged several reasons behind the lower uptake of insurance in Bulgaria, which ABZ continues to study through surveys and research. One widespread perception is that insurers “do not pay,” shared by about one-third of respondents. At the same time, data show that over 95% of policyholders actually received compensation for covered claims. In the remaining 5% of cases, the main reason for non-payment was that the claim was filed for a risk not included in the policy.
Angelov emphasized the importance of informed choice. When purchasing insurance, people should carefully review the coverage and conditions, consult with their insurer, and ask questions to ensure the policy matches their individual needs. Property policies, for example, can cover only standard risks such as fire and natural disasters, or they can be extended with additional protections such as theft, third-party liability, burst pipes, or broken windows. “Property insurance in Bulgaria is highly affordable, with the price depending on the insured sum and the scope of coverage,” Angelov concluded.
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