Bulgaria Insurance Report Q4 2014
As of mid- 2014, the latest statistics from the Financial Supervision Commission (FSC) and comments from leading companies active in Bulgaria indicate that the insurance sector is, and will remain, underdeveloped through the forecast period. Motor related premiums, which account for nearly three-quarters of the non-life segment, have been constrained by the general softness of the economy (and, we suspect, competition in what is a fragmented market place). Fire and property cover accounts for about one-fifth of the premiums in the non-life segment.
Life insurance continues to develop - if from a low base. At a little over US$20 per capita, density is at a level which indicates that many households are too poor (and/or lack the understanding of the benefits) to use the offerings of life insurers in organised savings.
Over the last two years or so, several of the leading players have taken steps to boost profitability. KBC moved to full control of DZI so that the Belgian group could extend its proven bancassurance business model to Bulgaria. VIG has merged two subsidiaries in the country - Bulstrad and Bulgarski Imoti - in order to realise synergy benefits. The very dominant position of multi-nationals in both major segments of Bulgaria's insurance sector should be considered a major strength. Nevertheless, as the Netherlands' Achmea and Australia's QBE demonstrated in late...
The Bulgaria Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Bulgaria Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Bulgarian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Bulgaria to test other views - a key input for successful budgeting and strategic business planning in Bulgaria's insurance market.
- Target business opportunities and risks in Bulgaria through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.
Business Environment Rankings
BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.
Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).
Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).
Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).
Competitive Landscape & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
As of mid-2014, the newsflow from Bulgaria's small insurance sector confirms our view that premium growth will likely be fairly anaemic in both the non-life and the life segments. In the non-life segment, the main challenge is brutal price competition in motor-related lines which account for the majority of the premiums written. In the life segment, the main challenge remains the low level of households' incomes - a problem that we have highlighted for years: we therefore think that the double-digit rise in life insurance premiums that took place during 2013 is an aberration.
BMI Industry View
Total Premiums Forecast
Table: Total Gross Premiums Written (Bulgaria 2011-2018)
Table: Total Net Premiums Written (Bulgaria 2011-2018)
Table: Total Reinsurance Premiums Written (Bulgaria 2011-2018)
Total Claims And Assets
Table: Total Insurance Claims (Bulgaria 2007-2013)
Table: Assets (Bulgaria 2007-2013)
Life Premiums Forecast
Table: Gross Life Premiums Written (Bulgaria 2011-2018)
Table: Net Life Premiums Written (Bulgaria 2011-2018)
Life Insurance Drivers
Table: Insurance Key Drivers, Private Health Expenditure (Bulgaria 2011-2018)
Table: Insurance Key Drivers, Disease Adjusted Life Years (Bulgaria 2011-2018)
Life Claims And Assets
Table: Life Insurance Claims (Bulgaria 2007-2013)
Non-Life Premiums Forecast
Table: Gross Non-Life Premiums Written (Bulgaria 2011-2018)
Table: Net Non-Life Premiums Written (Bulgaria 2011-2018)
Table: Reinsurance Non-Life Premiums Written (Bulgaria 2011-2018)
Table: Non-Life Insurance Claims (Bulgaria 2007-2013)
Table: Assets (Bulgaria 2007-2013)
Non-Life Sub-Sector Forecast
Table: Non-Life % Breakdown (Bulgaria 2011-2018)
Motor Vehicle And Transport Insurance
Table: Motor Vehicle Insurance (Bulgaria 2011-2018)
Table: Insurance Key Drivers, Autos (Bulgaria 2011-2018)
Table: Transport Insurance (Bulgaria 2011-2018)
Table: Insurance Key Drivers, Freight Tonnage (Bulgaria 2011-2018)
Health And Personal Accident Insurance
Table: Health Insurance (Bulgaria 2011-2018)
Table: Personal Accident Insurance (Bulgaria 2011-2018)
Table: Property Insurance (Bulgaria 2011-2018)
General Liability And Credit Insurance
Table: General Liability Insurance (Bulgaria 2011-2018)
Table: Credit/Financial Guarantee Insurance (Bulgaria 2011-2018)
Industry Risk Reward Ratings
Central and Eastern European Risk/Reward Ratings
Table: Central And Eastern Europe Risk/Reward Ratings
Life Market Overview
Table: Life Insurance Market (USDmn) 2007-2012
Table: Life Insurance Market (%) 2007-2012
Non-Life Market Overview
Table: Non-Life Insurance Market (USDmn) 2007-2012
Table: Non-Life Insurance Market (%) 2007-2012
Vienna Insurance Group (VIG)
Table: Bulgaria's Population By Age Group, 1990-2020 ('000)
Table: Bulgaria's Population By Age Group, 1990-2020 (% of total)
Table: Bulgaria's Key Population Ratios, 1990-2020
Table: Bulgaria's Rural And Urban Population, 1990-2020
Industry Forecast Methodology
Risk/Reward Rating Methodology
Table: Weighting of Indicators
This report does not have a list of Companies Mentioned available
This report does not have a press release associated with it