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 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.

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Прехвърляне на застрахователен портфейл

A KFN-approved transfer of all or part of an insurer's portfolio of policies and associated liabilities to another licensed insurer, preserving policyholder rights unchanged.

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Отнемане на лиценз

The most severe supervisory measure available to KFN, terminating an insurer's right to conduct insurance business, applied for grave and systemic breaches of the Insurance Code.

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Квестор

A KFN-appointed official who takes control of an insurer's management after licence revocation, responsible for protecting assets, processing claims, and preparing for possible insolvency proceedings.

How large is the Bulgarian insurance market?

Total GWP reached BGN 4.69 billion in 2024, up 6.69 percent year-on-year, across 36 registered insurers. Full-year 2025 non-life GWP alone reached a record BGN 4.38 billion, with total market GWP estimated at approximately BGN 5.25 billion, up around 12 percent. Q1 2025 GWP was BGN 1.37 billion, up 21.58 percent year-on-year.

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 owners and BGN 400 for drivers. Legal entities face up to BGN 2000, and traffic police can stop the vehicle from circulation.

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 mechanism introduced by the Insurance Code amendment of 1 August 2025 allows each MTPL insurer to adjust premiums based on the policyholder's individual claims history drawn from the centralised Guarantee Fund register. Drivers with fewer claims pay less. Insurers were required to update tariffs within 6 months, targeting implementation from early 2026.

Who regulates the insurance market in Bulgaria?

The Financial Supervision Commission (Komisiya za Finansov Nadzor, 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. Total premium income via brokers reached BGN 2.974 billion at end-December 2025, based on data from 348 of 349 registered brokers. Broker commission income grew 12 percent year-on-year to a record BGN 537.7 million in 2025. SDI Group and I&G Insurance Brokers lead the ranking.

Is home insurance compulsory in Bulgaria?

No. Home insurance is voluntary and penetration is very low, with only around 10 percent of properties insured, among the lowest shares in the EU. The Association of Bulgarian Insurers actively campaigns to raise consumer awareness.

What are the main insurance product categories in Bulgaria?

Over 80 percent of sector revenue is generated by non-life insurers, and motor policies bring over 70 percent of non-life receipts. Life insurance accounts for under 20 percent of total GWP. Health insurance grew approximately 23 percent in 2025 and is the fastest-growing segment. Property, liability, and cargo products complete the offering.

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

In an administrative licence revocation, existing contracts remain valid until expiry or until a court opens insolvency proceedings, as confirmed in the DallBogg case. MTPL claims are handled by conservators and, if assets are insufficient, passed to the Guarantee Fund. Policies concluded after the new business ban are invalid.

How does Bulgaria's adoption of the euro on 1 January 2026 affect insurance?

Bulgaria replaced the lev with the euro on 1 January 2026 at a fixed rate of 1.95583 BGN per EUR. Industry experts confirmed that insurance policy prices and pension accounts would not change solely due to the currency switch. All insurance premiums and claims are now denominated in euros, with dual price display required during the transition.

What is the DallBogg crisis and how does it affect policyholders?

From mid-2025 KFN imposed escalating measures on DallBogg, ending with licence revocation on 9 June 2026 over a EUR 280 million reserve shortfall and breach of the asset disposal ban. The company was the MTPL market leader with approximately 290,000 valid MTPL policies; all contracts concluded before 2 April 2026 remain valid. Post-revocation, KFN also referred DallBogg to prosecution for suspected asset stripping.