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!