Insurance market: results as of December 2020

For the insurance market as a whole, the effect of the crisis provoked by COVID-19 is to limit the dynamic growth of previous years and keep it at levels close to those of 2019. FSC market data, including the latest - as of December 2020 - confirm the trend. At the end of the 4th quarter of 2020, the total premium income for the market amounted to BGN 2,885 million, as the decrease compared to 2019 was only -0.9%. The total amount of compensations paid is BGN 1,210 million - practically unchanged compared to 2019.

The non-life insurance market is developing steadily, despite the overall economic stagnation and ends in 2020 with a premium income of BGN 2,438 million, + 1% higher than in 2019. The benefits paid amount to BGN 1,012 million. ., reporting a slight decrease of -2% on an annual basis.

Adherence to the levels from 2019 is also valid for the most popular insurances - "Civil Liability" of motorists and "Casco". The premium income from civil liability insurance at the end of 2020 amounts to BGN 1,080 million, with a minimum difference of - 0.9% on an annual basis, comparable to a slight decrease of - 0.7% in the number of active vehicles in 2020 compared to the previous year. The amount of indemnities paid under civil liability insurance at the end of 2020 increased by 6.14% on an annual basis and reached BGN 556 million. The levels of Casco insurance also move around those of 2019. The premium income for the month. December is BGN 653 million, with a minimal increase on an annual basis of + 0.16%, there is a slight decrease of -3.3% of benefits paid.

The data as of the end of the 4th quarter confirm the positive growth trend in property insurance from the previous months of 2020. Under Fire and Natural Disasters, the increase in premium income on an annual basis is + 4.7% and reaches 289 million. BGN as of December 2020. Significant increase of + 8.5% was registered by the Fire and Other Hazards insurance with a premium income of BGN 92 million. Under the insurance "Theft, robbery, vandalism" the premium income amounts to BGN 21 million, as the growth compared to 2019 is + 4.16%

The development in 2020 of insurance related to tourism and travel is interesting. The pandemic situation had a strong negative impact on this line of business, but during the year there were clear trends to overcome the sharp decline in premium income. If under the Travel Assistance insurance the decrease on an annual basis as of June is -49%, then at the end of the year, as of December, it has decreased to -4.2%, as the premium income amounts to 38 million BGN

The emerging situation in life insurance in 2020 of a decline in premium income and an increase in benefits paid compared to 2019 is an expected result due to stagnation, economic uncertainty and the effects of the pandemic on the lives and health of citizens. As of December 2020, the amount of the premium income is BGN 447 million, as in the same period of 2019 it was BGN 499 million. The amount of the paid compensations as of the end of 2020 of BGN 198 million is + 11.3% higher than the same period in 2019. The review of market data shows a positive trend of "declining" decline in premium income. If at the end of the first half of 2020 it was -14.3%, then in December it was -10.4%.

The sustainable development of insurance in our country is evident in the achieved net operating profit for the sector as a whole for 2020. It reaches BGN 186 million and increases by 32% compared to 2019. The reason is the high results achieved in general insurance, where the net the profit is BGN 165 million. In life insurance the profit is BGN 21 million, -26% lower than in 2019.