Insurance is risk covering. The “risk” is a major concept in the insurance which itself includes simultaneously the uncertainty for the future and the fact that the outcome or the development of a certain situation may place us in a position more unfavorable than the one in which we are.

The essence of the insurance is collection of cash contributions from multitude of people which are distributed among the injured, to ensure security upon occurrence of an unfavorable situation.

The insurance market is one of the most promptly developing sectors of the Bulgarian economy. It has been regulated since 1997 with the adoption of the Law on Insurance and the establishment of a state supervisory authority, and since 2003 it is regulated and supervised by the Financial Supervision Commission.