Generali has expanded into the Bulgarian health insurance market

Generali has invested 11 million euros in an attempt to expand beyond the auto insurance business in Bulgaria.

The Italian insurer is growing its health insurance business in the Balkan country. The company, through its subsidiary for Central and Eastern Europe, has finalized the acquisition of United Health Insurance Fund (OZOF) Doverie.

The deal was first announced six months ago and since then both sides have received the necessary regulatory approval - on December 17 from the Financial Supervision Commission, and on January 16 - from the Commission on the Protection of the Competition.

The deal is worth 22 million BGN (or about 11.24 million euros).

OZOF Doverie merges with Generali Insurance, whereby the latter will strengthen its commitment to customers and its growth in the Bulgarian market. What’s more, Central and Eastern Europe is a "strategic investment market" for Generali.

The CEO of Generali Insurance described the deal as 

a key step towards expanding the Generali Group's portfolio in Central and Eastern Europe in businesses outside of car insurance."

The automotive segment is still essential for insurers in Bulgaria, as the popularity of other insurance categories in this country is still low.

The health insurance market

The health insurance segment, however, is also becoming increasingly popular, as the Commission for the Protection on the Competition (CPC) points out in its decision. In the past year alone, Allianz and Groupama have also entered the health insurance market.

Generali Insurance estimates that after the deal is finalized, the company will become the second-largest actor in the Bulgarian health insurance segment. Bulstrad Vienna Insurance Group will remain the leader, but the two insurers will have a very small difference as they will both claim about 22% of the total market. With about 10% each, Uniqa and DZI Life Insurance are in third and fourth place. 

Bulgaria Insurance and Euroins have about a 5% share each.

Health insurance services are offered primarily to corporate clients in Bulgaria. These are employers that take out insurance policies for their employees and their family members as an additional work incentive. In those cases, the most important factor in choosing an insurer is the price offered for the policy, followed by its scope and coverage.

In recent years, health insurance has become more expensive. Companies have raised prices with the argument that this was linked to the rising costs of healthcare goods and services.

Translated by Tzvetozar Vincent Iolov