The presented data on the value and number of paid and filed claims under Motor Third Party Liability Insurance, including by risk groups, as of 30.09.2021 are published on the FSC website – www.fsc.bg, section “Insurance Activity”, “Statistics”, “Non-life Insurance”, “2021”. The data do not include insurance contracts that are concluded by insurers under the right of establishment or under the terms of freedom to provide services.
Announcement for conducting an examination for professional qualification of insurance brokers
The Financial Supervision Commission (FSC) informs all interested parties that at its meeting held on 05.10.2021 a decision was made to conduct an examination for professional qualification of insurance brokers in accordance with Ordinance No. 28 of 10.05.2006 of the FSC on the terms and procedure for conducting an examination for the professional qualification of insurance brokers and for the recognition of a qualification acquired in a Member State and for the registration of vocational training materials.
The examination will be held on 27 November 2021.
By 20.10.2021, the interested persons should submit an application for admission to the examination according to an approved template, together with the appendices under Art. 3, para. 2 of Ordinance No. 28 of 10.05.2006, namely: police clearance certificate or other similar document certifying the circumstances under Art. 303, para. 1, item 1 of the IC; a notarized copy of a diploma of higher education obtained in the country, respectively a legalized translation of a diploma of higher education obtained in a higher school outside the Republic of Bulgaria, to certify the circumstances under Art. 303, para. 2 of the IC and a declaration of the circumstances under Art. 303, para. 1, items 2 – 4 of the IC, according to a template.
Applications can be submitted every working day at the FSC office or signed with an electronic signature at the following e-mail address: delovodstvo@fsc.bg. A fee in the amount of BGN 450.00 (four hundred and fifty) shall be paid for taking the exam, based on Section I, item VI, line 15 in connection with Section IV, item IV of the Tariff of Fees Collected by the FSC under the Financial Supervision Commission Act, to the following bank account: IBAN: BG 95 BNBG 9661 3000 1415 01, BIC of BNB -Central office: BNBGBGSD.
The topics covered by the examination are published on the FSC’s website, in the section “Supervised entities”, “Qualification examinations”, “Insurance brokers examinations”, where the list of admitted candidates will be announced, as well as all other announcements related to the conduct on this exam.
Warning to potential investors
The Financial Supervision Commission of the Republic of Bulgaria warns all potential investors that Infinitrade, operating through the website www.infinitrade.com, does not have a license for an investment firm and is not entitled to carry out investment activities.
The Financial Supervision Commission (FSC) of the Republic of Bulgaria warns all potential investors that Infinitrade, operating through the website www.infinitrade.com and the companies A&I Products EOOD and A&I Products EOOD do not have a license issued by the FSC or by a competent authority of another Member State to act as an investment firm and are not entitled to provide investment services and / or to carry out investment activities. The listed companies are not entitled to receive money from individuals for the purpose of investing them in financial instruments.
The FSC draws the attention of potential investors to the fact that before transferring funds for trading in financial instruments, they should always check on the FSC website whether the person on whose account they intend to make the transfer has the right to provide investment services and / or perform investment activities.
An up-to-date list of companies that do not have a license to operate as an investment firm or management company in the territory of the Republic of Bulgaria is available here.
Information on companies and platforms for which information is available that they are not licensed can also be found on the websites of:
ESMA – https://www.esma.europa.eu/investor-corner/warning-and-publications-investors/;
International Organization of Securities Commission (IOSCO) – www.iosco.org/investor_protection/?subsection=investor_alerts_portal.
Data on the maximum amount of technical interest
Pursuant to Art. 86, para. 11 of Ordinance No. 53 of 23.12.2016 on the requirements for reporting, valuation of assets and liabilities and the formation of technical reserves of insurers, reinsurers and the Guarantee Fund, the Financial Supervision Commission published the maximum amount of technical interest for calculating premiums and reserves for the period from 1 October 2021 to 31 December 2021. Data on the maximum amount of technical interest can be found in the section “Insurance Activity”, “Statistics”, “Life Insurance”.
The Financial Supervisor of the Republic of Romania has revoked the license to conduct insurance business of SOCIETATEA DE ASIGURARE – REASIGURARE CITY INSURANCE S.A.
On 05.10.2021 the Financial Supervision Commission was notified by the Financial Supervision Authority of the Republic of Romania (FINANCIAL SUPERVISORY AUTHORITY ROMANIA) of the revocation of the license of the Romanian insurer SOCIETATEA DE ASIGURARE – REASIGURARE CITY INSURANCE S.A. due to insolvency of the insurer. Action has been taken by the Romanian national competent authority before the competent Romanian court to open insolvency proceedings against the insurance company.
SOCIETATEA DE ASIGURARE – REASIGURARE CITY INSURANCE S.A. has the right to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services, but according to the Romanian Financial Supervision Authority the insurer has not issued insurance to cover risks located in the territory of the Republic of Bulgaria.
The notice of license revocation is published on the website of the Financial Supervision Authority of the Republic of Romania at: https://asfromania.ro/en/a/2191/press-release.
The Financial Supervision Commission will promptly publish on its website: www.fsc.bg any information in connection with the open insolvency proceedings of SOCIETATEA DE ASIGURARE – REASIGURARE CITY INSURANCE S.A.
Up-to-date information can also be obtained through the Commission Information Centre: 0800 40 444 (toll-free number).
Vladimir Savov – Deputy Chairperson of the Financial Supervision Commission, Head of the Insurance Supervision Department in a special interview for Dir.bg
“The implementation of the Solvency II Regulation is expected in the short term to result in the release of up to € 90 billion in capital / financial resources that EU insurers can use to help recover from the current global crisis.” This was said by Mr. Vladimir Savov – Deputy Chairperson of the Financial Supervision Commission, Head of the Insurance Supervision Department in a special interview for dir.bg.
Mr. Savov added that “Those up to € 90 billion would be released in the short term, provided that the full combination of EC options is implemented in their current form. With the introduction of the changes over the next few years, these funds are expected to decline, including due to changes in market conditions.”
Among the other topics that the Deputy Chairperson of the FSC commented on is the accelerated digitalization of the insurance market caused by the pandemic, and his opinion, based on the latest available data in the FSC, is that in the last year the COVID-19 related risk is relatively limited in the insurance sector. The market is in relatively good financial condition and is prepared to meet a possible next wave.
Order of the Sofia Regional Court
At its meeting on 07.10.2021 the FSC decided to send a request to the Chairperson of the Sofia Regional Court to order all enterprises providing public electronic communications networks and / or services to suspend access to websites duly described in the FSC Decision No. 716-ИП/28.09.2021 and which by 07.10.2021 have not stopped offering investment services and activities by persons who are not entitled to carry out such services.
The Chairperson of the Sofia Regional Court ordered all enterprises providing electronic communications networks and / or services within 24 hours from the publication of the order on the FSC website (14.10.2021) to suspend access from the territory of the Republic of Bulgaria to the four websites explicitly mentioned in the FSC’s request.
The suspension of access to the described websites is necessitated by the fact that investment services are provided through them by persons who are not entitled to provide such services on the territory of the Republic of Bulgaria.
The order of the Chairperson of the Sofia Regional Court, together with the websites to which access should be suspended can be found in the attached file (available in BG version only).
Mariya Filipova – Deputy Chairperson of the FSC, Head of the Investment Supervision Department participates in the BSE awards for excellent performance at the examinations organized by the FSC for brokers and investment advisers
Today, a ceremony was held to award the most successful candidates for the qualification exams for brokers of financial instruments and investment advisers, organized by the FSC. Deyan Ivanov, Kristiyana Savova and Panayot Poshtov were awarded diplomas and financial incentives from the Bulgarian Stock Exchange as part of the long-term educational program of the Exchange – BSE Advance. The special ceremony was attended by Ms. Mariya Filipova – Deputy Chairperson of the FSC, who congratulated the three winners for their excellent results with the following words:
“I am certain that the reason for your success today is diligent preparation, which is a manifestation of your thirst for knowledge and the pursuit of self-improvement. Every obstacle overcome on the path of professional development sets the stage for new, higher and intriguing challenges. From now on, you will confirm to yourself and your colleagues and friends that the successful passing of exams and obtaining a certificate are not an end in themselves, but an expression of high professional capacity, which can and should be used to upgrade the environment in which we live and work. I wish you will meet the challenges successfully, remembering that professional ethics requires you to always put the interests of customers who rely on you before your own. The trust you gain will increase over time, and the more trust there is between the individual participants, the more will grow the trust and attractiveness the financial services market. Remember that the development of this market depends on each participant and their responsible behaviour. The experience gained over the years will inevitably lead to you being approached more and more often for advice and assistance, which is a cause for well-deserved satisfaction. I hope you will achieve new higher peaks in your academic and career development!”
On behalf of the organizer of the event, the Executive Director of the BSE – Assoc. Prof. Dr. Manyu Moravenov, congratulated the young experts on their success and expressed his conviction that “they are the best example for all others who see their future in the capital market in Bulgaria.”
Official guests of the event were Mrs. Radoslava Maslarska – President of the Bulgarian Association of Licensed Investment Intermediaries (BALII) and Mr. Petko Krastev – President of the Bulgarian Association of Asset Management Companies (BAAMC).
Update of the lists of insurers and insurance intermediaries who have stated their intention to carry out cross-border activity within the Internal Market of the European Union
For the period from 01.09.2021 to 30.09.2021 the FSC received notifications from the competent authorities of Member States regarding the intention of 71 (seventy-one) insurers and insurance intermediaries based in other EU Member States to operate (entry or termination of the notification) on the territory of the Republic of Bulgaria under the terms of the freedom to provide services.
2 (two) notifications were received regarding the intention of insurance companies based in EU Member States to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services, and by the end of September 2021 the total number of insurance companies based in other EU and EEA Member States which intend to operate in Bulgaria under the terms of freedom to provide services, increased to 413 (four hundred and thirteen).
For the period, the FSC received 13 (thirteen) notifications regarding the intention of insurance intermediaries based in EU Member States to carry out insurance mediation activities in Bulgaria under the terms of freedom to provide services, as well as 51 (fifty-one) notifications for termination of such activity in the country. As a result, as of 30.09.2021, the number of insurance intermediaries based in EU Member States that have stated their intention to carry out cross-border insurance intermediation activities in Bulgaria decreased to 2,227 (two thousand two hundred and twenty-seven).
In September 2021, the FSC sent notifications to the national competent authorities of the EU Member States about the intention of a local insurer to expand the scope of the company’s cross-border activities in their territory for certain classes of insurance.
During the same period, the FSC sent a notification to the competent authorities of EU Member States about the intention of a local insurance broker to expand its insurance intermediation activities by operating under the terms of freedom to provide services in their territory, as well as a notification to the national competent authority of the Republic of France for the intention of another insurance broker to start insurance intermediation activity on its territory.
As of the end of September 2021, the total number of local insurance companies that have stated their intention to carry out insurance activities in the territory of other EU and EEA Member States under the terms of freedom to provide services is 17 (seventeen), and the total number of insurance intermediaries based in the Republic of Bulgaria, which have stated their intention to carry out insurance intermediation activities on the territory of EU Member States under the terms of freedom to provide services or the right of establishment, remains 53 (fifty-three).
The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.
Vladimir Savov – Deputy Chairperson of the Financial Supervision Commission, Head of the Insurance Supervision Department, took part in a special event from the Tech21 series
“The challenges posed by the pandemic to the insurance, supervisory and regulatory sectors have served as a catalyst for processes that have evolved over time but had not been considered a priority,” said the Deputy Chairperson of the Financial Supervision Commission, Head of the Insurance Supervision Department – Vladimir Savov, at the special event of the Tech21 series.
Vladimir Savov also said that in the first and most acute months of the Covid-19 pandemic, the high degree of digitalization is what is observed in the insurance sector and he believes that the process will continue and develop faster. He added that for the Financial Supervision Commission, as a regulator, the priorities that remain foremost are: to protect consumer rights as well as the financial stability of the insurance sector.
In conclusion, Mr. Savov drew attention to the risks that digitalization entails, such as cybersecurity, protection of personal data, non-disclosure of sensitive information, as well as possible digitalization of insurance supervision.