At its meeting on 11.03.2021, the FSC adopted Decision No. 123 – ОЗ of 11.03.2021 on initiating proceedings for compulsory liquidation of IC EUROAMERICAN AD, UIC 124634117, and the Guarantee Fund was designated as liquidator of the insurer with revoked license. The decision is available on the FSC website in the section Administrative Documents, Decisions, 2021, March.

 By Decision No. 1309 – ОЗ of 17.12.2019 the FSC revoked the license for insurance of IC EUROAMERICAN AD, UIC 124634117, issued by Decision No. 238-03 of 27.02.2014 of the FSC, and appointed a conservator of the company. The same decision prohibits the free disposal of assets by IC EUROAMERICAN AD until the commencement of liquidation or insolvency proceedings, as well as the conclusion of new insurance contracts for all classes of insurance for a period of 6 months from the date of issuance of the decision. Decision No. 1309 – ОЗ of 17.12.2019 became effective on 17.02.2021, when Decision No. 2111 / 17.02.2021 under Administrative case No. 9509/2020 according to the inventory of the Supreme Administrative Court, Seventh Department maintained Decision No. 563/19.06.2020 under Administrative case No. 47/2020 according to the inventory of the Sofia District Administrative Court, which rejected the appeal of the insurer against Decision No. 1309 – ОЗ of 17.12.2019 of the FSC.

 Decision No. 1309 – ОЗ of 17.12.2019 of the FSC becoming effective is grounds to proceed to the compulsory termination of IC EUROAMERICAN AD under Art. 602, para. 1, item 2 of the IC, as the revocation of the insurer’s license is based on Art. 40, para. 2, item 2, 4 and 8 of the IC.

 The premium income realized through the insurance brokers in 2020 amounts to BGN 1,716,982 thousand. (BGN 1,686,860 thousand one year earlier), with an increase of 1%, of which:

– BGN 1,577,286 thousand. (with BGN 1,566,886 thousand reported twelve months earlier) for the benefit of insurers and reinsurers based in the Republic of Bulgaria.

– BGN 1,569,824 thousand. (with BGN 1,549,504 thousand reported for the previous year) for the benefit of insurers based in the Republic of Bulgaria.

– BGN 139,695 thousand (compared to BGN 119,973 thousand in 2019) for the benefit of insurers and reinsurers based in a Member State, operating in the Republic of Bulgaria under the terms of right of establishment /branches/ and the terms of the freedom to provide services, as well as insurance and reinsurance intermediation outside the territory of the Republic of Bulgaria and other insurance intermediation.

 Income from commissions of insurance brokers in favour for the benefit of insurers based in the Republic of Bulgaria as of 31.12.2020 amounts to BGN 286,066 thousand. (compared to BGN 280,270 thousand in the previous year) for the benefit of insurers based in the Republic of Bulgaria, there is an increase of 2% on an annual basis.

 Of all accrued commissions, 95% represent the revenues from subscribed insurance commissions in non-life insurance and 5% – respectively in life insurance.

 In the structure of the premium income from non-life insurance realized through insurance brokers as of 31.12.2020, the largest share is occupied by motor insurance – Motor Their Party Liability (50.76%) and Land vehicles other than railway rolling stock(28.78%), followed by Fire and natural disasters (5.60%) and Guarantees (5.21%).

 In life insurance, the premium income realized through insurance brokers as of 31.12.2020 was recorded mainly under Life and annuity insurance (48%), Sickness insurance (31%), Supplementary insurance (10%), followed by Unit-linked life insurance (4%).

 Updated individual data from the reports of insurance brokers operating during the reporting period and registered in the Republic of Bulgaria as of 31.12.2020 are summarized and published on the FSC website in the section “Insurance activity”, “Statistics”, “Insurance Brokers”,”2020”.

 For the period 01.12.2021 – 28.02.2021 the FSC received 2 (two) notifications regarding the intention of insurance companies based in other Member States of the EU to operate in the territory of the Republic of Bulgaria under the terms of freedom to provide services , as well as 7 (seven) notifications regarding the withdrawal of intention of one insurer established in an EU Member State, to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services.

 During the same period, the FSC received 30 (thirty) notifications from the competent supervisory authorities regarding the intention of insurance intermediaries based in EU Member States to carry out insurance intermediation activities on the territory of the Republic of Bulgaria, as well as 16 (sixteen) notifications of the intention of insurance intermediaries based in EU Member States to suspend the activity of insurance intermediation on the territory of the country.

 As of 28.02.2021, the number of insurance companies based in other EU Member States which have notified the FSC of their intention to operate on the territory of the Republic of Bulgaria amounts to 427 (four hundred and twenty-seven). At the same date, the insurance intermediaries from Member States for which the FSC received a notification of intention to carry out insurance intermediation activities on the territory of the Republic of Bulgaria are 2,226 (two thousand two hundred and twenty-six).

 Given the expiry of the transitional period following the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the EU as of 1 January 2021, insurance companies and insurance intermediaries established in the United Kingdom shall be treated as insurers and insurance intermediaries established in a third country. As a result, insurance companies based in the UK are included in a separate list, in order to protect the public interest and given the fact that all insurance contracts concluded with such insurers before 31.12.2020 for risks located in the Republic Bulgaria, remain valid and can be serviced. The insurance companies based in the United Kingdom, for which the FSC received notifications before 31.12.2020 regarding their intention to operate in the country, are 222 (two hundred and twenty-two). The insurance intermediaries based in the United Kingdom, for which the FSC received a notification before 31.12.2020 for their intention to carry out insurance intermediation activities on the territory of the country, are 908 (nine hundred and eight). After 31.12.2020 the FSC did not receive any notification regarding the intention of an insurance intermediary based in the UK to establish a subsidiary or a new intermediary on the territory of the Republic of Bulgaria.

 For the period 01.01.2021 – 28.01.2021, the FSC did not send notifications to the competent authorities of EU Member States about the intention of local insurance companies to operate on their territory. During the same period, the FSC sent 1 (one) notification regarding the withdrawal of the intention of a local insurance company to operate in another Member State under the terms of freedom to provide services. As of 28.02.2021, the total number of insurance companies based in the Republic of Bulgaria which have stated their intention to carry out insurance activities on the territory of other EU Member States under the terms of freedom to provide services, remains 18.

 For the period 01.01.2021 – 28.02.2021 the FSC has not sent notifications to the competent supervisory authorities of the EU Member States about the intention of local insurance intermediaries to carry out insurance intermediation activities on their territory under the terms of freedom to provide services or the right of establishment. As of 28.02.2021, the total number of insurance intermediaries based in the Republic of Bulgaria which have declared their intention to carry out insurance intermediation activities on the territory of EU Member States, remains 52.

 The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.

For the purpose of information and transparency to the Bulgarian public on the case with Certasig-Insurance and Reinsurance Company AD, whose license was revoked by the Insurance Supervision Authority in the Republic of Romania, and in addition to the information already published on the FSC website dated 19.01.2021, the Chairman of the Financial Supervision Commission Boyko Atanasov presented a communication campaign informing the persons who have insurance claims to the company that with a Decision of 14.01.2021 of the Court of Appeal in in Bucharest, the decision to initiate proceedings on the insolvency of Certasig – Insurance and Reinsurance Company AD has been confirmed and has become effective as of 14.01.2021.

According to the information available to the FSC, in accordance with the applicable legislation of the Republic of Romania, insurance contracts concluded with Certasig – Insurance and Reinsurance Company AD continue to be valid after the date of revocation of the company’s license up to 90 days after the court decision for initiating insolvency proceedings becoming effective (15.04.2021) or until one of the following dates – the date of expiration of the contract or the date of its termination by the policyholder through a unilateral notification addressed to the insurance company.

The persons who have claims for insurance compensation in connection with insurance events or for insurance premiums corresponding to the unexpired term of insurance contracts that have been terminated prematurely can file their claims to the Romanian Guarantee Fund for Policyholders in Romania.

Any person who has an insurance claim against the company may submit a justified request to the Guarantee Fund of the Republic of Romania (address: 24 Popa Petre Street, sector 2, Bucharest, e-mail: office@fgaromania.ro and phone: 004.021.211.60.37, 004.021.211.60.73, fax: 004.021.211.60.94. ), as of the date of the decision of the Financial Supervision Authority of the Republic of Romania to revoke the license of Certasig – Insurance and Reinsurance Company AD, but not later than 90 days from the date of the decision becoming effective – 15.04.2021 and in case this right has arisen after the opening of the insolvency proceedings – within 90 days from its occurrence. Claims can be filed directly in the headquarters of the Romanian Guarantee Fund, by post, by e-mail or in other ways that guarantee submission and confirmation of receipt.

more information on the protection provided by the insurance claims guarantee scheme in the Republic of Romania, on the authorized persons and on the procedure under which claims can be made is available at https://asfromania.ro/en/consumers/certasig-information/certasig-guide.

In adherence to the commitment of awareness and transparency made by Mr. Boyko Atanasov, Chairman of the FSC, the Financial Supervision Commission will continue to communicate the relevant information concerning the protection of the rights and interests of the users of insurance services in connection with all subsequent measures against the insurer and its branch in the Republic of Bulgaria on its website: www.fsc.bg.

The Deputy Chairperson, Head of the Investment Supervision Department, approved a template of the Report under Art. 31, para. 3 of the Special Investment Purpose Vehicles and Securitization Companies Act (SIPVSCA) for transformation of the financial result of special investment purpose companies by the procedure of Art. 29, para. 3 of the SIPVSCA. An up-to-date template of the report is published on the website of the Financial Supervision Commission, section “Administrative documents”, section „Forms and templates” (available in BG version).

The Deputy Chairperson, Head of the Investment Activity Supervision Department approved a Template of declaration under Art. 20 of the Special Investment Purpose Companies and Securitization Companies Act. An up-to-date template is published on the website of the Financial Supervision Commission, section “Administrative documents”, section „Forms and templates” (available in BG version).

The data presented from the reports of insurers in non-life and life insurance at the end of November 2020 are summarized and published on the FSC website – www.fsc.bg, section “Insurance activity”, “Statistics”.

The Deputy Chairperson, Head of the Investment Supervision Department, approved an updated template of Report No. 7 Management Company – Portfolio, part of the templates of reports to the financial statements of management companies, determined by Decision No. 1522 – КИС of 08.12.2017. The current templates of reports are available on the website of the Financial Supervision Commission, section “Administrative documents”, “Forms and samples”, “Investment activity“.

Once more “Capital” brought together the financial technology community at the traditional FinTech Summit.

Fintech entrepreneurs and innovators, visionaries, bankers, financial experts, representatives of companies from the country and abroad, as well as the central government and regulators discussed the future of the fintech sector, and how the global economic crises caused by COVID in 2020 turned out to be a stimulus for the development of financial technology.

„Technological advances offer the insurance industry tremendous opportunities to meet growing customer needs and regulatory requirements. More and more, maintaining competitiveness will mean that insurers have to keep up with the latest developments in insurtech, so that companies can ensure that they take advantage of the best possible technological solutions,” said Vladimir Savov – Deputy Chairperson of the FSC, Head of the Insurance Supervision Department in his opening speech at the Innovation in the Insurance Sector panel. He added that he “believes that we, as an insurance regulatory and supervisory body, need to address the following challenges in the near future:

• We need to understand how innovation works and is implemented to ensure an adequate assessment of new product and business models.
• We will also need to balance the risks of innovation with the benefits for policyholders and the insurance sector as a whole, and consider how to create the right environment to foster innovation. In other words, we need to find a balance between fostering innovation and protection against the negative aspects of any potential customer and business disruptions.
• We will need to assess and, where appropriate, adjust the regulatory framework, especially on the part of market behaviour, in order to adequately deal with changing risks and business models.
• We will need to organize the appropriate capacity – technical resources, knowledge and skills – to be able to respond to and monitor FinTech solutions in the future.

In conclusion, Mr. Vladimir Savov assured the conference participants that “The Financial Supervision Commission is fully committed to its strategic goals, namely to protect consumers of financial services, maintain the stability of the non-banking financial sector and promote business development. We will strive to apply the same principles in building and maintaining an adequate understanding of financial innovation. In this way, we intend to strengthen cooperation with stakeholders, first and foremost with the insurance sector.”