With a decision of today, June 9, 2026, the Financial Supervision Commission (FSC, the Commission) withdrew the insurance licence of “ZAD DallBogg: Life and Health” JSC.
Based on the finding that the insurer does not comply with the minimum capital requirement under the Solvency II regime, the Commission requested it to submit a short-term realistic plan for restoring its solvency. Within the deadline set, the company submitted a plan, which the Commission examined and assessed in detail and found that the plan was manifestly inadequate for restoring the insurer’s solvency. Therefore, the Commission refused to approve it by decision of today.
The presentation of a manifestly inadequate recovery plan, in case of the most severe regulatory breach, namely non-compliance with the minimum capital requirement – is grounds for withdrawal of the insurer’s licence. This ground for withdrawal of the licence stems directly from the provisions of the Solvency II Directive. In these circumstances, the Commission, as the national authority that licenced the insurer, has no discretion in the matter and is required to withdraw the licence.
In addition, the Commission found that the insurer had not complied with several coercive administrative measures imposed by effective decisions of the Commission and the Deputy Chairman, Head of the Insurance Supervision Division, as well as by decisions subject to immediate enforcement by law.
The Commission further found that the insurer had committed multiple serious or systematic infringements when operating in the EU Internal Market and the Green Card system. Information on these infringements was received from the national supervisory authorities in Italy, Poland, Romania, Greece and Spain, as well as from the European Insurance and Occupational Pensions Authority (EIOPA), which showed that the insurer had repeatedly breached applicable law over an extended period of time in relation to claims handling, payment of insurance compensations and complaints management. Several coercive administrative measures have been imposed for these violations by both FSC and other national supervisory authorities, but they have not led to a correction of the insurer’s market behaviour, which is incompatible with the rules of the EU Internal Market.
Finally, the Commission found that the insurer had unlawfully refused to pay due and liquid monetary obligations established on the basis and in the amount of final court decisions. Such non-performance was established both based on information received from national supervisory authorities of other EU Member States and from consumer complaints submitted directly to the Commission.
An English version of the operative part of the decision will be published additionally. The Bulgarian version of the decision is legally binding, while the English version is for informational purposes only.
From the date of today’s decision – June 9, 2026, “ZAD DallBogg: Life and Health” JSC is not entitled to conclude new insurance contracts or extend the terms or expand the coverage under current insurance policies. The insurer is not entitled to freely dispose of its assets.
As of today, the insurer is managed and represented by two quaestors. All rights of the previous management and supervisory bodies of the insurer have been terminated, except for their right to appeal the decision to withdraw the licence. Until the decision to withdraw the licence is appealed and the competent court has not issued a final decision, the company remains under quaestorship, which is supervised by the Commission.
Information for insurance policy holders
The withdrawal of the licence does not affect the validity of the insurance contracts already concluded with “ZAD DallBogg: Life and Health” JSC.
All insurance policies concluded with this insurer remain valid and provide the necessary coverage for the relevant risk until the term for which they were concluded. Only after the decision to withdraw the licence and initiate insolvency proceedings enters into force will the insurance policies be terminated by virtue of the law. Until that time, the insurer may collect contributions for insurance premiums, as well as accept, consider and settle all insurance claims filed against it, as well as pay the due insurance compensations.
The insurance compensations under the Motor Third Party Liability (MTPL) policies are guaranteed by the Bulgarian Guarantee Fund. It is responsible for claims that the insurer cannot pay from the moment the licence is withdrawn. In this way, all persons who have claims against the insurer will receive their guaranteed insurance compensations.
Q&A for consumers
- I have a “ZAD DallBogg: Life and Health” JSC MTPL policy.
What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn?
Your MTPL insurance policy remains in force until the expiry of the term for which it was concluded or until a decision is made to open insolvency proceedings against “ZAD DallBogg: Life and Health” JSC by the competent Bulgarian court. After the occurrence of any of these circumstances, the contract ceases to be effective. Until that moment, the contract remains valid and “ZAD DallBogg: Life and Health” JSC is obliged to accept, consider and settle the submitted insurance claims, as well as to pay the due insurance compensations.
After the withdrawal of the licence of “ZAD DallBogg: Life and Health” JSC, the payment of the due compensation under the MTPL is guaranteed by the Bulgarian Guarantee Fund.
Persons who do not maintain valid MTPL are subject to the administrative sanctions provided for in the law. Driving a motor vehicle without valid insurance is not permissible.
After the expiration of the insurance contract, the clients of “ZAD DallBogg: Life and Health” JSC should conclude a new contract for MTPL with another insurer.
Where necessary, insured persons should seek advice from the competent national supervisory authority, professional organisation, insurance intermediary or consumer protection organisation before taking any action regarding their insurance.
- I was involved in a car accident (which involved a “ZAD DallBogg: Life and Health” JSC’s policyholder) and I am still waiting to receive compensation from “ZAD DallBogg: Life and Health” JSC. What can I do?
In this case, the payment of the due compensation will be ensured by the Guarantee Fund of the Republic of Bulgaria. Given the withdrawal of the licence of “ZAD DallBogg: Life and Health Insurance” JSC, it is possible that the consideration and settlement of claims may take longer than the terms applicable to the usual settlement of claims under national legislation.
- I have suffered damage from a driver insured by DallBogg: Life and Health Insurance Company. Where can I file my claim?
If you are a resident of a Member State of the European Union or the European Economic Area, you can file your claim directly with DallBogg: Life and Health Insurance Company. This rule also applies when the insurance contract of the person who caused the damage has terminated in accordance with national law, provided that the accident occurred before the date of termination of the contract.
- I purchased an MLTPL policy from “ZAD DallBogg: Life and Health” despite the ban.
What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn?
If you are a Bulgarian citizen and have concluded a contract after April 2, 2026, you should keep in mind that the contract does not produce legal effects. You must immediately file an official complaint with the competent authorities and conclude a new contract with an insurer who is entitled to carry out insurance activities.
- I hold a “ZAD DallBogg: Life and Health” JSC policy which is not MTPL (e.g. credit and suretyship). What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn? Does the protection of the Bulgarian Guarantee Fund apply to all types of insurance?
No. The Guarantee Fund’s protection is only applicable to compulsory MTPL insurance and does not cover other types of insurance, including Credit insurance or Guarantee insurance.
If your claim is related to another type of insurance, your right to compensation will be determined according to the applicable national legislation and there may not be a mechanism for guaranteed payment of compensation.
In this case, insured persons should seek assistance from the competent national supervisory authority, professional organisation, insurance intermediary or consumer protection organisation.
- Where can I find more information?
It is essential that consumers know their rights and obligations under the concluded insurance contracts and are familiar with the consequences of the decisions of the Financial Supervision Commission regarding the activities of “ZAD DallBogg: Life and Health Insurance” JSC.
Additional information can be found on the websites of the Bulgarian supervisory authority and the competent supervisory authority in the country of residence of the respective consumer.
- Bulgaria – Комисия за финансов надзор
- Greece – Τράπεζα της Ελλάδος
- Italy – Istituto per la vigilanza sulle assicurazioni
- Poland – Urząd Komisji Nadzoru Finansowego
- Romania – Autoritatea de Supraveghere Financiară
- Spain – Dirección General de Seguros y Fondos de Pensiones
Disclaimer: This English-language press release is provided for information purposes only. The legally binding version of the Commission’s decision is the original Bulgarian text.