Bulgaria to implement bonus-malus insurance system in 2027

Bulgaria is set to implement a ‘bonus-malus’ system for mandatory civil liability insurance starting in February 2027. Plamen Danailov, Deputy Chairman of the Financial Supervision Commission, stated that while regulations were adopted in late August, technical preparation is required for practical application.

The system aims to link insurance premiums more closely to a driver's actual claims history and behavior. While Danailov clarified that the system is not designed solely to increase costs, he noted that insurance prices are not expected to decrease for all drivers. Instead, the model is intended to foster competition, allowing insurance companies to offer better terms to drivers with clean records.

Under the new rules, each insurance provider will establish its own pricing and claims history policies, which must be made public. The Guarantee Fund will track insurance claims over the previous five years to facilitate this process. The transition includes a six-month period for the Guarantee Fund to update its systems, followed by three months for insurers to integrate their information systems with the fund.