Development of the Bulgarian Insurance Market - Crisis Challenges of the Decade

Stoyan Prodanov and Stefan Stanimirov
Additional contact information
Stoyan Prodanov: D. A. Tsenov Academy of Economics
Stefan Stanimirov: D. A. Tsenov Academy of Economics

Economic Archive, 2020, issue 2 Year 2020, 14-29

Abstract: The present study focuses on the development of the Bulgarian insurance market in the second decade of the XX century. It examines the issues of the relationship between the global financial sector, insurance and the phases of economic cycles; the debate on the importance of the financial sector and insurance for the economic development; the establishment of correlations and dependencies between the dynamics of GDP and the dynamics of the Gross Premium Income (GPI) in the general insurance sector in Bulgaria for the period 2007-2019, presenting prospective reflections and assessment of the impact of the global pandemic COVID-19 on the Bulgarian insurance market. The linear model in a realistic scenario forecasts a decline in GPI of 18.2%, in a GDP decline of 9.0%. An additional assessment and forecast made using the model is that a decrease between 12.4% and 25% of GPI from the compulsory motor third party liability insurance (at the indicated level of GDP decline) will have a destructive effect on the Bulgarian model of general insurance, due to the impossibility to perform the social functions of this insurance such as the protection of victims of road accidents.

Keywords: economic growth; insurance market; general insurance; motor third party liability; COVID-19 (search for similar items in EconPapers)
JEL-codes: Q01 Q10 Q13 Q18 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10610/4346

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dat:earchi:y:2020:i:2:p:14-29

Access Statistics for this article

Economic Archive is currently edited by Andrey Zahariev

More articles in Economic Archive from D. A. Tsenov Academy of Economics, Svishtov, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Kostadin Bashev ().