site.btaUPDATED Nearly BGN 1.8 Bln Spent on Insurance, Almost BGN 697 Mln Received in Compensation in January-June 2022

The data of the Financial Supervision Commission for the first half of 2022 show that the insurance market has remained stable with a positive trend of development, the Association of Bulgarian Insurers (ABI) said Wednesday. The total premium income of the insurance market at the end of June 2022 reached nearly BGN 1.8 billion, with a year-on-year growth of 9.8%. Indemnity payments increased by 9.3% compared to a year earlier and amounted to BGN 697 million. 

According to ABI, this result is particularly good in view of the serious challenges facing the economy and society - political instability, economic difficulties and inflation, and problems with the entire supply chain caused by the pandemic and the war in Ukraine. 

The non-life insurance market achieved premium income growth of 10.3% year-on-year, which amounted to BGN 1.476 billion as of June. Insurance payouts amounted to BGN 565.7 million, with a year-on-year increase of 7.6%. 

Car insurance remains highly dominant, shows ABI’s report. Under motor third party liability insurance, the premium income collected was BGN 592 million, with a slight increase of 1.4%. Casco insurance maintained a trend of a more significant premium income growth of 15% to BGN 405 million, with a similar growth of 14% in payouts, which reached BGN 163 million.

Agricultural insurance accounted for an insignificant share of the premium income under non-life insurance but has recorded a year-on-year increase of 19.6% to BGN 14 million. The payouts to farmers in just one year have increased by 164% percent, based on the increasing frequency of natural disasters on the territory of Bulgaria, ABI said, without informing about the amount of compensation paid.

Market data as of June 2022 shows a slowdown in the growth rate in life insurance premium income to 7.8% (BGN 319.3 million). Indemnity amounted to BGN 131 million, up by 17%. This development is linked to trends around the investment-linked life insurance, which has been the "engine" of intensive growth in life insurance in 2021. Its premium income for the first half of 2022 was BGN 110 million. By comparison, its premium income for the first half of  2020 was BGN 49 million. 

The trend of increased interest in health insurance is maintained. In the case of sickness insurance, the total premium income for the market as of June amounted to nearly BGN 107.4 million, with a year-on-year growth of 19.6%. Indemnity payments amounted to BGN 48 million, up 23% compared to the same period in 2021.