Bulgaria insurance market

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Застраховател

A KFN-licensed joint-stock company or mutual insurance cooperative authorised to underwrite insurance risks under the Bulgarian Insurance Code.

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Застрахователен брокер

A KFN-licensed intermediary acting on behalf of the client, distributing products from multiple insurers, prohibited from simultaneously acting as an insurance agent.

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Застрахователен агент

A KFN-registered intermediary acting on behalf of one or more specific insurers, distributing their products under a mandate from those insurers.

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Гражданска отговорност

Mandatory liability insurance for all Bulgarian-registered motor vehicles covering bodily injury and property damage caused to third parties. The most traded insurance product in Bulgaria.

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Автокаско

Voluntary insurance covering damage to or theft of the insured vehicle regardless of fault. Second-most common motor insurance product in Bulgaria.

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Застрахователна полица

The written insurance contract document specifying covered risks, insured sums, premium, and conditions, issued by the insurer to the policyholder.

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Застрахователна премия

The price paid by the policyholder to the insurer for coverage, calculated based on risk profile, coverage scope, and applicable tariffs or bonus-malus rules.

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Застрахователно обезщетение

The amount paid by the insurer to the insured or a third-party beneficiary upon occurrence of an insured event, as determined under the policy terms.

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Технически резерви

Liabilities set aside by insurers to cover future obligations to policyholders and claimants, required to be sufficient and properly invested under Solvency II.

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Платежоспособност

An insurer's ability to meet all financial obligations. Under Solvency II Bulgarian insurers with EU market access must meet the Solvency Capital Requirement at all times.

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Капиталово изискване за платежоспособност

Risk-based capital requirement under Solvency II that an insurer must hold. Non-compliance triggers mandatory recovery planning and supervisory intervention by KFN.

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Презастраховане

Insurance purchased by an insurer from a reinsurer to transfer part of its risk portfolio, limiting its own loss exposure. Regulated separately under the Insurance Code.

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Принудителна административна мярка

A supervisory enforcement tool used by KFN ranging from warnings and prescriptions to suspension of new business or licence revocation when regulated entities breach the Insurance Code.

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Гаранционен фонд

Industry-funded body that compensates victims of uninsured or hit-and-run drivers and pays claims when an insurer becomes insolvent, for mandatory insurance lines only.

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Свобода на предоставяне на услуги

EU single-market right allowing a licensed EEA insurer to offer insurance in other EEA states without a local branch after notifying its home supervisor.

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Право на установяване

EU single-market right allowing an EEA insurer to set up a branch or subsidiary in another EEA member state, supervised by the host state for conduct and the home supervisor for prudential matters.

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Бонус-малус

A premium adjustment mechanism for MTPL introduced in Bulgaria by the Insurance Code amendment of August 2025, rewarding claim-free drivers with lower premiums and penalising those with claims.

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Застрахователно събитие

The occurrence of a contractual condition such as accident, fire, or death that triggers the insurer's obligation to pay compensation under the policy.

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Застраховано лице

The natural or legal person whose life, health, property, or liability is covered by the insurance contract, which may differ from the policyholder who concluded and pays for the contract.

How large is the Bulgarian insurance market?

Total GWP reached BGN 4.68 billion (approximately EUR 2.39 billion) in 2024, up 6.5 percent year-on-year, according to KFN data. Non-life insurance accounts for roughly 83 percent of total premiums, with motor lines generating over 70 percent of non-life GWP. There are 36 licensed local insurers.

What is mandatory motor third-party liability insurance and who must have it?

Mandatory Motor Third-Party Liability insurance called Grazhdanska Otgovornost or GO is compulsory for all motor vehicle owners under the Insurance Code. Driving without valid GO results in fines of BGN 250 for individuals, BGN 800 on repeat, and up to BGN 2000 for legal entities. Traffic police can revoke vehicle registration.

How do I file a complaint if my insurer refuses to pay?

First file a written complaint with the insurer. If unresolved, submit a written complaint to the Deputy-Chair of KFN Insurance Supervision at email delovodstvo@fsc.bg or in person at Sofia 1303, ul. Shar Planina 33. KFN cannot force payment; only a court can. The most frequent complaints concern MTPL and Casco refusals.

Can a foreign EU insurer sell insurance in Bulgaria without a local licence?

Yes. EEA-licensed insurers may operate in Bulgaria under Freedom of Services without a local branch or under Freedom of Establishment via a branch, after their home supervisor notifies KFN. KFN publishes a register of all notified foreign EEA insurers active in Bulgaria.

What is the bonus-malus system and when does it apply?

The bonus-malus system introduced by the Insurance Code amendment of 1 August 2025 allows each MTPL insurer to adjust premiums based on the policyholder individual claims history drawn from a centralised Guarantee Fund register. Drivers with fewer claims pay less and those with more pay more. A KFN regulation with implementation rules was to follow within 6 to 8 months of the law.

Who regulates the insurance market in Bulgaria?

The Financial Supervision Commission known as Komisiya za Finansov Nadzor or KFN, established on 1 March 2003, is the independent regulator responsible for insurance, capital markets, and supplementary pension insurance. It is accountable to the National Assembly. Website: www.fsc.bg, phone: +359 2 94-04-999.

What share of the market is distributed through brokers?

Brokers are the dominant channel. Premium income channelled through brokers reached BGN 2.66 billion in 2024 and BGN 2.97 billion in 2025 according to KFN data, representing roughly 55 to 60 percent of total market premiums. There were 343 active licensed brokers in 2024, led by SDI Group and I&G Insurance Brokers, both owned by US group Acrisure.

Is home insurance compulsory in Bulgaria?

No. Home insurance is voluntary and penetration is extremely low, with only about 10 percent of properties insured. Bulgaria ranks last in the EU for the share of insured property. The Association of Bulgarian Insurers actively campaigns to raise consumer awareness.

What are the main insurance product categories in Bulgaria?

Non-life insurance dominates with motor lines, MTPL and Casco, generating over 70 percent of non-life GWP. Life insurance accounts for approximately 17 percent of total GWP. Health insurance is the fastest-growing segment but remains underpenetrated. Property, liability, and cargo products complete the offering.

What happens to my policy if an insurer loses its licence?

Under the Insurance Code the Guarantee Fund covers claims under mandatory insurances such as MTPL and worker accident insurance if a Bulgarian insurer's licence is revoked. For voluntary lines policyholders must seek new cover with another insurer. Existing claims at revocation are covered up to statutory limits.