Life insurance - Bulgaria | Statista Market Forecast

The Life insurance market market in Bulgaria is expected to reach a projected market size (gross written premium) of US$322.90m in 2024.
The average spending per capita in the Life insurance market market is estimated to amount to US$48.79 in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 7.04%, resulting in a market volume of US$453.80m by 2029.
When compared globally, the United States is projected to generate the highest gross written premium of US$1.3tn in 2024.
Bulgaria's life insurance market is experiencing a surge in demand due to an aging population and growing awareness of the importance of financial security.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past few years, the Life insurance market in Bulgaria has experienced steady growth and development. Customer preferences in the Bulgarian Life insurance market are shifting towards more comprehensive coverage options that provide not only financial security but also investment opportunities for policyholders. This trend mirrors the global movement towards insurance products that offer a combination of protection and wealth accumulation. One noticeable trend in the Bulgarian Life insurance market is the increasing popularity of unit-linked insurance products. These products allow policyholders to invest a portion of their premiums in different funds, providing the potential for higher returns compared to traditional life insurance policies. This trend reflects a growing interest in investment-linked products among Bulgarian consumers seeking to maximize their long-term financial growth. Local special circumstances in Bulgaria, such as a rising middle class and increasing awareness of the importance of financial planning, have contributed to the growth of the Life insurance market. As more Bulgarians seek to secure their financial future and protect their families, the demand for life insurance products has seen a significant uptick. Additionally, the regulatory environment in Bulgaria has become more favorable for insurance companies, encouraging innovation and product diversification in the market. Underlying macroeconomic factors, such as stable economic growth and low interest rates, have also played a role in shaping the Life insurance market in Bulgaria. With a relatively stable economy, Bulgarians are more inclined to invest in long-term financial products like life insurance. Low interest rates have pushed consumers towards investment-linked insurance products as they search for higher returns in a low-yield environment. Overall, the Life insurance market in Bulgaria is on a positive trajectory, driven by evolving customer preferences, specific market trends, local circumstances, and favorable macroeconomic conditions.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.