Банкеръ Daily


Insurance: Is another bankruptcy lurking on us?

The insurance market in Bulgaria is blooming and flourishing.

The gross written premium in non-life insurance as of September 30, 2019 is BGN 1.807 billion, which is an increase of 17% compared to the same period of 2018 (BGN 1.540 billion).

However, segregation continues.

The top 10 insurers out of 25 concentrate 90.5% of total gross premium income.

Net income in non-life insurance reaches BGN 109 million in the first nine months of the year and increases by 15% compared to the same period of 2018, when it was BGN 95 million.

The gross written premium of the companies operating in the life insurance market amounts to a total of BGN 377.7 million, which is an increase of 16% compared to September 30, 2018 (BGN 325.1 million). Net profit in the life insurance sector grows by 26% year per year.

The concentration in this sector is even greater. Five large companies versus 6 small. The top five hold 92.5% of the total gross written premium for life insurance.


The Bulgarian insurance market is blooming and fading.

Because the situation is disturbing, having in mind one of its most important stability indicators.  It refers to "coverage of insurance reserves". This is the ratio of equity investments, debt securities, shares in investment funds, bank deposits, other loans provided, share of reinsurers in reserves

on the one hand, and the technical reserves of insurers on the other.

A total of 7 companies, or almost one in four, have coverage below 100%. Worst of all is “IJSC  DallBogg: Life and Health” with 70%, and the best of all is Bull Ins which almost meets the requirements with 97% coverage.

Aren’t  there new bankruptcies stalking on us behind the glamour of financial results and in the face of scandalous segregation in scale.

Perhaps that is the reason why the Financial Supervision Commission decided at the end of last year to raise the contribution to the Guarantee Fund against bankruptcy of an insurer. The payment will be increased from BGN 1.50 to BGN 2.50 for each motor vehicle under Motor Third Party Liability.

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