The battle for customers in the difficult economic situation has rearranged the insurance market in our country. The data of the Financial Supervision Commission on the transfer of insurance for a second pension from one pension fund to another point to this conclusion. Along with people who decide to change their fund, the dynamics in the number of insured depends on the service distribution and the choice of people who enter the system for the first time. The decision of the insured is increasingly influenced by promotions, offers and some not so loyal practices.
Among the universal funds, there have always been three distinct leaders – Doverie, which holds a quarter of the market, Allianz and DSK-Rodina, and the arrangement in the first three has not changed for years. However, as a result of an active policy to attract insured persons from other funds, “DSK-Rodina” almost closed the distance with “Allianz” in terms of the number of insured persons, and in terms of net assets it is already the second fund in our country after “Doverie”.
At the end of 2022, DSK-Rodina overtook Allianz for the first time in terms of market share according to net assets, already holding 19.94% compared to 19.75% for Allianz. “Allianz” still leads with 19.12% market share by number of insured, but “DSK-Rodina” almost catches up with it with 18.96%. For comparison, the difference between the two universal funds at the end of 2020 was nearly 4 percentage points for the insured – 20.37% for “Allianz” and 16.47% for “DSK-Rodina”, and in terms of net assets – over 2 percentage points point. Similar processes are taking place among the smaller funds, with differences melting and new shifts possible.
The trends are also confirmed by the statistics of people who have transferred their individual lots from one fund to another. Here, “DSK-Rodina” is consistently the leader in attracting new customers and tens of millions of BGN in their savings. In 2022, this universal fund increased its clients by 57,215 people, which is the net result of those who came and left it. In attracted funds from individual lots, this means BGN 211,626,362 in plus for the fund.
Against the background of the billions that the second pillar manages, the above numbers may not seem so big. However, they are several times higher in achievement compared to other funds. The largest – “Doverie”, for example, added BGN 58,871,017 to its assets, attracting 17,346 people. UPF UBB also has a positive balance from the change of fund – 7,216 new clients and their BGN 60,354,793. The other funds lose from this exchange.
“Allianz” has lost 22,375 customers, and in individual batches this amounts to BGN 121,260,434. At “Saglasie”, the balance sheet is BGN 106,016,448 transferred elsewhere and 25,158 customers less. “CCB-Sila” lost 11,745 insured persons and their BGN 52,078,871. The insured in “Budeshte” decreased by 14,297 people, and the funds transferred there amounted to BGN 37,107,683.
PROFITABILITY
The popularity of a fund does not necessarily correspond to the results of its activity in investing the insurance funds. The most popular transfer fund “DSK-Rodina” has a minus 5.31% yield for the past two years, according to the statistics of the Financial Supervisory Service. “Trust” is down 4.14%, “Saglasie” – down 3.72%, UPF UBB is down 3.52%, and “Allianz” – down 3.22%.
PROMOTIONS
In all this, the competition also flows through intensified promotions and offers. This possibility was officially regulated two years ago, and companies can organize and participate in loyalty programs together with retail chains, financial institutions, utility operators and others for the benefit of pensioners and insured persons.
Among the package of “compliments” offered by Doverie, for example, there are not only banking services, but also discounts for using an adventure park, car service, shopping at specific stores, etc. “CCB-Sila” gives discounts when refueling at certain gas stations, insurances, etc. “Allianz” offers preferential conditions for using banking services from the bank in the group. The customer card of Budeshte provides discounts when using hotels, sports shops, opticians, etc. “Toplina” has offers for gas stations, furniture stores, pizzerias, driving lessons, etc.
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