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The coronary crisis has caused a reduction in the cost of compulsory motor civil liability insurance in recent months. The lower number of accidents due to the reduction in road traffic caused a drop of more than 10% in the prices of most insurers.
For Sofia, which is the most dangerous city to drive, in the first half of the year insurance has decreased by almost BGN 40 for the most popular cars, the Monitor account shows. So for a 15-year-old vehicle with 100 hp. energy and driver more than 25. Now the policy costs an average of 250 lev. The amount is in installments for four months.
It can be cheaper with a one-time payment
with another 10 BGN. In the absence of accidents and damages respectively, the price of compulsory motorist insurance decreases by another ten levies.
As a consequence of the reduction in economic activity and social distancing measures, in the March-May period a decrease was reported in road traffic and, respectively, in traffic accidents. This was reflected in a decrease in the number of damages presented to insurers during these months, DZI said.
That is why insurers made several reductions in the price of automobile liability insurance, which would reflect the lower risk in this period. On the other hand, since June there has been a recovery in traffic, favored by the fall in fuel prices, but probably also by the preference of many people to use private transport over public transport for prevention.
The discount is not the same for everyone
The average reduction in the base price of policies issued in November is greater than 10%. For some groups of clients the discount is greater, reaching 15-20%, but there are also groups of clients for which there is no difference. They are mostly young drivers.
In the March-May period, insurers reported a decrease in the number of third party auto liability insurance policies taken out. After that, however, their numbers returned to normal levels.
The insurance market data confirms the gradual general trend towards recovery despite the general economic stagnation due to COVID-19, according to data from the Financial Control Commission and comments from the branch.
Towards the end of the nine months of Liability insurance, there was a slight increase in premiums paid of 1% in the first 9 months of the year, while Casco reported a 1% drop. The premium income for motorist insurance is about BGN 840 million, and the hull is about BGN 480 million.
Slight decrease in premium income with insurers
The Bulgarian insurance sector is doing quite well at this point in the pandemic. There has been a slight decline in premium income of around 2.5% annually since spring, but it is moderate and manageable, “Vladimir Savov, vice chairman of the Financial Supervision Commission, said during the Financial Investment Forum.
Without taking into account the specific phenomena in the statistics, there is a moderate increase in interest in health insurance products. Insurers currently have a dual approach to the coronavirus crisis.
In the first months of the pandemic, as a consequence of the shock, they adopted a policy of excluding pandemic risks from insurance policies. Recently, some of them are starting to offer additional insurance for COVID-19.
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