The current under-development of Bulgaria's insurance market, which is mainly comprised ofthe basic lines of motor vehicle and property insurances, reflects the high levels of income disparity inBulgarian society, with a lack of affordability stymying the growth of non-discretionary lines. A robusteconomic backdrop, and a strengthening consumer environment will result in the gradual eroding of themarket's traditional structural challenges over the forecast period. In particular, we expect to see a steadyuptick in demand for personal lines, including life and health insurance products. This will createopportunities for local insurers to grow their business and to diversify their product offering away frommore mature markets such as the property and property segment. This will be offset to an extent by highlevels of competition between providers and the relatively small size of the country's consumer base.
Key Updates And Forecasts
The H117 results of Bulgaria's multinational insurers illustrate the strong growth momentum in thecountry's insurance market. Austria's Vienna Insurance Group (VIG) reported a 13.8% increase in pretaxprofits from its Bulgarian operations during the period to EUR4.3mn, while gross written premiumsrose by 10% to EUR82.5mn. Compatriot Uniqua saw local pre-tax profits double to EUR600,000 whilepremiums rose by 14.7% to EUR25.8mn.