23 août 2007
Net Assets of Bulgarian Pension Funds Top EUR 1 B
The net assets of Bulgarian private pension funds topped EUR 1 B last week, data from Bulgaria's Financial Supervision Commission (FSC) showed on Wednesday.
Since the start of the year, the assets of the private pension funds grew by 30%, but are still small compared to the function they are expected to pay in the Bulgarian economy.
The net assets of the Bulgarian pension funds totalled 3,1% of the country's gross domestic product last year at EUR 770 M, compared to figures in excess of 100% in some developed countries.
Bulgaria began a drastic overhaul of its pension system in 2002, introducing mandatory contributions to private pension funds (pillar 2 of the reform) and voluntary contributions (pillar 3), in addition to the existing mandatory contributions to the state pensions fund (pillar 1).
But several factors have prevented pension funds assets from growing strongly.
One of them is the fact that Bulgarian regulations force the funds to hold part of their assets in Bulgarian treasury bonds, whose yields have been below inflation rates in recent years.
Additionally, given Bulgaria's complex labour legislation, employees can legally avoid paying their mandatory pension contribution on their full income.
The high management fees charged by the pension funds further reduce their assets, although it does have the effect of boosting their profit.
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10 août 2007
Insurance “disaster”
| 10 August 2007 | 07:11 | |
Interest in agriculture insurance in Bulgaria has not increased, despite the natural disasters and states of emergency, say insurers and agriculture experts. They think the financial state of producers is the main factor for the lack of interest in the offered products. Some 80% of the agricultural producers who apply for European programs insure their property. This insurance year distinguished for great extent of damages caused by fires compared to the last 5-6 years.
FOCUS News Agency
Insurer: Agriculture insurance can grow when they change the rules of the game
The private sector hardly makes agriculture insurances, they have no money, besides Bulgarians have low insurance culture, Vasko Elitsin, head of the Agriculture Insurance dept. to insurer Bulgarski Imoti. Growth of agriculture insurance can be achieved when they change the rules of the game, he says. These are cases when people hear about forecasts for future cooling of the weather or heavy rains and then they make insurances, he said.
I have spoken to many leaseholders who say they rely on their luck to be passed by by the hail and bad weather. Others always make insurances. Money, however, plays a leading part, he says.
Separate farmers find it very hard to make insurances as they have no money. I expect young people with new understanding of matters to enter the industry. The world is globalizing, there are very well-prepared specialists. So I hope the sector will grow, he also says.
Agriculture insurances to be reduced as consumers have no funds, says expert
This year agriculture insurances will drop in number as producers have high financial difficulties right now, insurance expert at HDI company Detelina Zhivkova has said. Where we had drought farmers have no funds. I think they will have many expenses as the autumn crop has been heavily damaged and they can’t compensate for anything from the spring harvest, she said.
So I don’t expect less insurances as the problem has been caused by lack of funds, she commented.
In her words insurance tariffs cannot have a considerable lowering in prices as they are calculated on an analysis basis. The price of insurance is not high at all. This is simply a matter of risk measurement, Zhivkova commented.
80% of agriculture producers who apply for European programs insure property, says expert
Some 80% of the agricultural producers who apply for European programs insure their property, head of the Agriculture Insurance dept. to DZI Dimitar Tsolov has said. In his words animals that are imported are usually insured. In his words there is no trend for enhanced interest in agriculture insurance in Bulgaria due to lack of funds.
06 août 2007
KBC takes over Bulgaria's leading insurer DZI
Belgian banking and insurance group KBC wrapped up a 185 mln euro deal for a majority stake in Bulgaria's leading insurer DZI Insurance, it said on Fri, quoted by news agency Reuters. KBC finalised the deal to buy 70% in DZI after it received all regulatory approvals. It said it would soon launch a public takeover bid for the outstanding shares. It has said the buyout offer will be for 79 mln euro. (Dnevnik)
26 juillet 2007
Only 33% of Bulgarians have insurance of any kind
A mere 33% of Bulgarians have at least one type of insurance cover while the remainder have not bought any insurance products in the past 5.5 years, found a Gallup International national survey commissioned by insurance company Interamerican Bulgaria. Middle-aged males in the high to medium income bracket make up the biggest share of insurance buyers in Bulgaria. A fourth of the 1,010 Bulgarians that participated in the survey said they were not acquainted with any insurance products. The most quoted reason for not having an insurance cover was not needing one, followed by distrust in the insurance companies and doubts about the payout of insurance claims. Only 6% of the polled said they had complete trust in the insurance companies while 17% said they had none. The survey found that life and motor third party insurance are the most recognizable insurance products. As many as 62% of respondents said motor third party is the insurance product they intend to buy next year. Bulgarians also told the pollsters they are prepared to set aside 140 levs annually for insurance costs. The findings have motivated Interamerican to start an awareness campaign in a bid to improve Bulgarians' insurance knowledge.(Dnevnik) |
23 novembre 2006
Bulgaria motor ins premium low-end threshold set at 126 levs for '07
Bulgaria has set the minimum risk premium on motor third party insurance for 2007 at 126 levs.
The marketing of motor third party programs below that guidance level is not advisable and will warrant corrective countermeasures, said Ralitsa Again, deputy chair of the Financial Supervision Commission.
At the moment, the local insurers sell motor third party at around 100 levs.
At end-September, the average motor third party premium stood at around 88 levs. Balgarski Imoti and Allianz offered the cheapest policies - at 59.8 and 62 levs, while Energia had the most expensive product at 160 levs.
The end-September average motor third party claim amounted to 1,053 levs.
The motor third party coverage purchased by Bulgarian motorists should become valid on EU territory as of January 1, 2007 after all member states grant their approval. However, Britain for the moment is refusing to ink the relevant documents.
'It is not clear what happens when one member state holds out,' said Again, adding that until Bulgaria is acceded to the relevant agreement, local motorists will be subject to border checks.
In related news, the FSC released data for the period ended September 2006 showing that the top 5 domestic insurers - DZI, Bulstrad, Allianz, Bul Ins and Generali, are losing market share.
The overall market grew 10.75% over end-September 2005 to 717.6 mln levs.
Motor insurance premiums increased 7.35% to 442.1 mln levs, including an premium income of 123.8 mln levs from motor third party.(Dnevnik)