The latest statistics indicate for the second quarter of this year a 2 percentage points increase of the Bulgarian economy, showing strong signs of recovery after three years of economic crisis. Also, the Cabinet in Sofia forecasts an economic growth of 3.6 percent for the end of the year. The insurance market "did not wait too long" for signs of consolidation, after six months of 2011 increasing at the same pace with the economy: +0.8%, reaching EUR 417.6 million.
On business lines, the life insurance market in Bulgaria has ended the first six months of 2011 with a significant increase of gross written premiums, as a result of population preference for unit-linked insurance, which has registered a spectacular increase of nearly 111%. After a period of underwritings activity decrease in previous years, the value of gross written premiums on the life insurance segment in January-June 2011 increased by 6.5%, from EUR 62.3 million to EUR 66.3 million, according to data published by the supervisory authority in Sofia. Also, the value of gross claims paid by the 16 Bulgarian life insurers totaled EUR 26.1 million, decreasing in absolute value by about EUR 0.4 million.
The market leader, with a premium volume of EUR 13.8 million (up by 12%) is ALLIANZ Bulgaria Life, while the second place went to the local division of the Belgian group KBC, DZI Insurance (market share 13.7%). UNIQA Life has completed the podium with a business volume of EUR 7.7 million, up by 27% compared to January-June 2010. In terms of growth rate, among the top 10 companies in the market, the most spectacular was recorded by the company occupying the 8th place, GROUPAMA (+135.3%), while the largest decrease was recorded by SyVZK (-30%). The first three companies in the market have made about 46% of the total, while the top ten have generated more than 95.3% of total underwritings.
General insurance generated about 84% of the total insurance market, the equivalent of EUR 351 million, down by 0.2% compared to January-June 2010. Of all classes of general insurance, "the supremacy" was held by motor insurance, that represented, added up (Motor Hull and MTPL), more than 60% of the total market (about EUR 251 million). Also worthy of mentioning is the ascending dynamic registered by MTPL insurance (+15%), this reality maintaining the general insurance segment at approximately the same level as in 2010, the rest of the insurance classes with important percentual contributions in the market portfolio registering decreases of the business volumes: Motor Hull (-12%), property (-7%), civil liability (-3%).
In the claims chapter, the two types of motor insurance mentioned above have generated, added up, 76 percentage points from their total value. Voluntary Motor Hull generated claims worth around EUR 76 million, while MTPL insurance made the insurers spend about EUR 66 million. The hierarchy of insurance companies has changed at the top, DZI Insurance becoming the leader on the general insurance segment: gross written premiums EUR 43.6 million worth, equivalent to a 12.4% market share. The next two positions were occupied by BULSTRAD VIG (underwritings of EUR 43.3 million) and BUL INS (EUR 41.4 million).
The latest statistics indicate for the second quarter of this year a 2 percentage points increase of the Bulgarian economy, showing strong signs of recovery after three years of economic crisis. Also, the Cabinet in Sofia forecasts an economic growth of 3.6 percent for the end of the year. The insurance market "did not wait too long" for signs of consolidation, after six months of 2011 increasing at the same pace with the economy: +0.8%, reaching EUR 417.6 million. 