Voluntary Health Insurance Market Develops Rapidly.

(From PARI Daily)

Byline: Gergana IVANOVA

THE YEAR 2004 has been interesting for the voluntary health insurance market. Five companies have received licences this year alone, which has raised their total number to eleven. The data for the first nine months of the year show healthy growth in the premium income in the sector by 67.77%, compared to the first half of 2004. We should point out that market concentration in 2003 was high. The two companies licensed earlier on, Doverie and Zakrila, accounted for most of the volumes in the sector, while the new licensees were developing their networks and attracting clients. The premium income in the sector for 2003 amounted to BGN 6.405 million, rising more than 93% on 2002.

These figures do not provide a sufficient basis for conclusions about the trends in the sector, as most companies have not yet completely developed their operations, while others are just starting. Nevertheless, we can safely say that interest in the voluntary health insurance market is increasing and - judging by the amount of premium collected - the number of people closing contracts for voluntary health insurance is also rising.

Sector's Income Exceeds BGN 7m

Health insurance companies in Bulgaria post a BGN 7.278 million premium income for the first nine months of 2004, show data of the health insurance supervision division of the Financial Supervision Commission. Compared to the first half of the year, when companies posted a BGN 4.338 million premium income, the result has improved by 67.77%.

Eight of ten licensed companies conducted operations in the first nine months of the year. Bulgaria Zdrave and Planeta have not yet reported premium incomes. Zdrave in turn is now heading for a good market share after it signed a contract for voluntary health service of nearly 8,000 workers of Kremikovtsi metallurgical plant.