More and more agricultural producers are buying insurance, and the increasing frequency of natural disasters is one of the main reasons for the growing interest in agricultural insurance, according to Nina Kolchakova, Secretary General of the Association of Bulgarian Insurers (ABZ), the Association wrote.

Hail remains one of the most serious risks to crops and is included in the basic coverage of all agricultural insurance policies. Although there are no official statistics on the share of insured land, data from insurance companies show a noticeable increase in interest over the past year, with some companies seeing an increase of 60–70%.

A few years ago, only 6-10% of arable land was insured. Today, expert estimates suggest that this share is already around 15-16%, and according to some estimates, it is approaching 20%. This trend also coincides with increasing confidence in the insurance sector, as reported in the latest national representative survey. The growing interest is due to both the more frequent natural disasters and the greater state support.

Despite the positive trend, Bulgaria remains among the countries with low insurance penetration in agriculture.

Nina Kolchakova also drew attention to the need to use insurance more actively as a risk management tool. Currently, a significant part of the consequences of natural disasters continues to be borne by agricultural producers themselves and the state. Bulgaria has a stable, well-regulated and financially sustainable insurance sector, which can play an even greater role in limiting the economic consequences of climate risks, she added.