Al. Tsvetkov: Insurance in the EU is 9% of GDP, and in Bulgaria – below 3%

Al. Tsvetkov: Insurance in the EU is 9% of GDP, and in Bulgaria – below 3%
Al. Tsvetkov: Insurance in the EU is 9% of GDP, and in Bulgaria – below 3%

The company is looking for between €3m and €6m from BSE’s Beam growth market, Boleron’s Alexander Tsvetkov said

Digital insurer Boleron will list by the end of 2023 on the Beam growth market, part of the Bulgarian Stock Exchange. The company’s goal is to collect between 3 and 6 million euros from investors to develop its business in Greece and Romania. This is what Alexander Tsvetkov, co-founder and executive director of “Boleron” said in the program “Business Start” on Bloomberg TV Bulgaria.

“Our technology is a platform that digitizes and automates processes in insurance. We do in insurance what VISA and MasterCard did – payment systems that serve bank transactions, no matter which bank you use, and accordingly take a percentage of them,” said Tsvetkov.

At the moment, the company is the only digital infrastructure of this type in the region, but similar ones exist in the USA, China, Germany and Great Britain.

Tsvetkov noted that Boleron will try to raise capital on the BSE for several strategic reasons, the first being to enable customers to become shareholders.

He explained that the company is more of a software company, but also has an insurance broker’s license. “Our big idea is not so much for customers to go through our brand, but to go through our infrastructure,” Tsvetkov said.

“On November 15, we will announce that telecoms in Bulgaria are starting to use our software platform to sell insurance to their customers. This is exactly what we want to do in the region by negotiating with telecoms in Romania and Greece, which have a multi-million customer base. Telecom in Romania has 10 million customers. Thus came the need to raise more capital – to increase the speed with which we digitize the insurance industry in Romania and Greece,” he added.

Tsvetkov noted that the company sells insurance not only through telecoms and is in the process of negotiations with the largest electronic retailer in the region, as well as with an energy company.

Alexander Tsvetkov commented on the low insurance culture and the weak development of certain insurance products in Bulgaria, noting that on average in the European Union insurance represents 9% of GDP, and in Bulgaria it is less than 3%. “For us, this is an opportunity, as this share will inevitably grow. Insurance as a business is very stable in any crisis. It is yet to increase and that too in niches like health insurance, life insurance, company insurance,” he said.

“The types of policies with the greatest potential for growth in Bulgaria are company insurance and health insurance. We recently launched an international health insurance that allows our clients to choose among the best hospitals in the world for the treatment of serious illnesses and which has a 2 million euro cover,” said Tsvetkov.

According to him, new products are constantly appearing in insurance, with cyber insurance becoming more and more popular because of the increased risks in cyberspace.

According to the other co-founder of the company and a teacher at VUZF Dimitar Kolchakov insurance in our country is a conservative industry. Boleron is making a digital insurance platform for the first time in the country with the aim of simplifying the process and saving time, he said on the program “In Development”.

The old players want to keep the status quo, such as the civil liability stickers or the annual car inspection, and this information can be verified by the car number as with the vignettes, Kolchakov pointed out. He added that Bulgaria is the only country in the EU that has left the stickers on the windshields of cars.

“Regulations are one of the main challenges to insurance and to fintech, rather overregulation,” he added. According to him, regulations should be balanced and work with business.

The material is not a recommendation to buy or sell securities.

See the entire conversation at the video.

You can watch all the guests of the “Business Start” show here.

The article is in bulgaria

Tags: Tsvetkov Insurance GDP Bulgaria