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Mechanism of Government Funding in case of Disasters and the Insurance as an additional alternative in Bulgaria Lilyana Todorova Ministry of Interior,

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Presentation on theme: "Mechanism of Government Funding in case of Disasters and the Insurance as an additional alternative in Bulgaria Lilyana Todorova Ministry of Interior,"— Presentation transcript:

1 Mechanism of Government Funding in case of Disasters and the Insurance as an additional alternative in Bulgaria Lilyana Todorova Ministry of Interior, Bulgaria Ralitsa Raycheva Ministry of Finance, Bulgaria Presentation to the Seminar Insurance as a method for Disaster Risk Reduction in SEE April 24, 2013: Berovo, Macedonia

2 The state budget financing of all activities related to disaster in Bulgaria: Funding of already planned expenditure in the budget of the relevant ministries and municipalities - prevention expenditure and the operating expenses Funding of expenditure that cannot be predicted - recovery expenses in case of disasters as earthquake, floods, fires, etc.

3 The amounts of the Reserve for Unpredictable and Urgent Expenses connected with disasters consequences for the last five years:

4 Interagency Commission for Recovery and Relief to the Council of Ministries : The Commission is a permanent organization The victims of disasters have to apply for funding from the Commission The Commission decides which sites to be funded and how much to be spend Criteria for assessment of applications

5 Global economy: The recovery of the global economy in 2012 Continues with a slower pace - Process of fiscal consolidation Alternative funding - Insurance companies

6 The floods in Bulgaria in 2005 and 2006: Most significant floods for the last 50 years International humanitarian assistance provided

7 Strazhitsa earthquake in 1986: 8.9 Richter Destroyed 80 percent of buildings Casualties

8 Insurance Companies and Natural Disasters in Bulgaria: from 20 insurance, 19 provide coverage of risks against "flood" and "earthquake" combined risk tariff rate for the risk of earthquake 8.5% of the total housing in Bulgaria are insured against risk of earthquake

9 The Insurance is beneficial for: The Government – reduces the amount of government funds Insurers – sales of insurance services are increased Affected population of natural disasters - receive financial resources

10 Share of Gross Premium Income of Natural Disasters Insurance

11 Conclusions: The state funds are insufficient Establishing an insurance culture Quality and create opportunities to secure the insurance services Analysis and assessment of the legislations related to the Natural Disaster Insurance

12 THANK YOU FOR YOUR ATTENTION!


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