Insurance penetration in Bulgaria low: Study

SOFIA, Bulgaria— While 33% of Bulgarians have bought at least one type of insurance in the last five and half years, the rest have not purchased any, according to a Gallup International survey commissioned by Sofia-based insurer Interamerican Bulgaria.

Of the 1,010 Bulgarians surveyed, the reason most often cited for not having insurance was that it is too expensive (54%), followed by thinking it is not needed (40%), and a lack of trust in insurance companies (24%), according to the findings.

Those who bought insurance said the reasons were mostly because it makes them feel more secure and because they prefer to spend money on insurance than to pay for damages. The demographics of insurance buyers were predominantly middle-aged men with higher household income who live in large cities, the survey found.

As for the level of trust in insurance companies, only 6% of those Bulgarians polled said they have complete trust in insurance companies and their products, while 26% said they are more likely to trust them. Seventeen percent said they did not trust insurers.