Motor Vehicle Insurance - Bulgaria

The Motor Vehicle Insurance market market in Bulgaria is projected to reach a market size (gross written premium) of US$1.21bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is expected to amount to US$182.60 in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 3.21%, resulting in a market volume of US$1.42bn by 2029.
In global comparison, the United States will generate the highest gross written premium of US$341.6bn in 2024.
The motor vehicle insurance market in Bulgaria is experiencing a rise in demand due to the increasing number of car owners in the country.

Definition:

Motor vehicle insurance, often referred to as auto insurance, is a type of coverage that offers financial protection to individuals who own or operate vehicles like cars, motorcycles, or trucks. When you have motor vehicle insurance, you pay regular premiums to an insurance company, and in return, the insurer helps cover the costs associated with accidents, damages, and injuries related to your vehicle. This insurance market is essential for providing security and financial assistance in case of accidents, ensuring that individuals can repair or replace their vehicles.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Insurance of land motor vehicles

Accident insurance
Insurance for aerial vehicles
Insurance for watercraft
insurance for spacecraft
All other insurance types, such as life insurance and health insurance
Reinsurance

The Motor Vehicle Insurance market in Bulgaria is experiencing significant growth and evolution.

Customer preferences: Customers in Bulgaria are increasingly seeking comprehensive motor vehicle insurance coverage to protect their vehicles from various risks such as accidents, theft, and natural disasters. There is a growing demand for tailored insurance packages that offer additional benefits and services, reflecting a shift towards more personalized and customer-centric offerings.

Trends in the market: One notable trend in the Bulgarian Motor Vehicle Insurance market is the rising adoption of digital channels for purchasing insurance policies and filing claims. Insurers are leveraging technology to streamline processes, enhance customer experience, and offer competitive pricing. Additionally, there is a growing emphasis on promoting road safety and reducing accidents through initiatives such as telematics-based insurance products.

Local special circumstances: Bulgaria's Motor Vehicle Insurance market is influenced by factors such as the country's regulatory environment, competitive landscape, and socio-economic conditions. The presence of both domestic and international insurance companies has led to a diverse range of products and pricing strategies in the market. Moreover, the high prevalence of vehicle theft and road accidents in certain regions has prompted insurers to develop specialized solutions to address these risks.

Underlying macroeconomic factors: The growth of the Motor Vehicle Insurance market in Bulgaria is also supported by favorable macroeconomic conditions such as increasing disposable income levels, rising car ownership rates, and overall economic stability. As the country's economy continues to develop, more individuals are purchasing vehicles and recognizing the importance of having adequate insurance coverage. This trend is further reinforced by regulatory requirements mandating basic insurance coverage for all vehicles on the road.

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.

As the population of the United States grows, so too does the number of drivers on the road and thus the customer base for motor insurance. In 2022, there were over 280 million registered vehicles on the roads in the United States. Of those millions of registered vehicles, each year there are also millions of vehicle crashes. Road traffic fatalities in the U.S. peaked in 2021. So while many individuals feel secure in their vehicles, the statistics indicate the importance of automobile insurance and in most cases, auto insurance is required by law. Auto insurance is important because it not only covers any physical damage that may occur in an accident, but also any damage or injury that might be caused because of a vehicular accident or which may be done upon oneself or one’s vehicle by another vehicle or accident – a falling tree for example.