On the occasion of numerous media statements by various interested parties regarding the claim of increase in the price of insurance “Civil liability“ of motorists, the Financial Supervision Commission (FSC) stated the following:
The Financial Supervision Commission carefully monitors all media publications and statements in connection with the claim of an increase in the price of "Civil Liability" insurance. of motorists. Even before the official receipt on November 5, 2024 at the FSC of a signal from the Branch Organization of Taxi Carriers and Drivers in Bulgaria, the FSC had already launched an investigation, within the framework of which it requested from its supervised persons data on the basis of which to establish the facts of the case and to take supervisory measures, if necessary, within the framework of its legal powers.
Although the FSC has no obligation to collect information on the tariff rates of insurance offered by local insurers, as this is prohibited by European Union law, the FSC has the right to collect information on the tariffs of individual insurances in connection with specific supervisory purposes , including in the case of received complaints or reports of violations of the applicable regulatory acts in the field of insurance.
According to the Insurance Code, in relation to insurance premiums, there is a requirement of sufficiency, which requires insurers to determine and apply insurance premiums that ensure the fulfillment of all their obligations, including the obligation to form sufficient technical reserves. In this regard, the FSC is authorized to supervise the adequacy of insurance premiums.
The Financial Supervision Commission is authorized to determine the contributions to the Guarantee Fund of the insurers offering the compulsory insurance “Civil Liability” of motorists, which is paid together with the insurance premium under this insurance. It should be emphasized that currently the FSC has announced for public discussion its decision, which does not foresee an increase in contributions to the Guarantee Fund for 2025.
Last but not least, it should be pointed out that neither the Bulgarian nor the European insurance legislation applied by the FSC provides for limits on the maximum amounts of insurance premiums for insurance, including for “Civil Liability“ of motorists, and premiums should be regulated only through the natural mechanisms of free market competition.