A general administrative act was issued – Decision No. 107-ОЗ of 02.03.2021 for determining the amount of minimum percentages, according to Art. 91, para. 3, item 2 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 (Ordinance No. 53), as well as the period for their application.

The decision is available on the FSC website in the section Administrative Documents, Decisions, 2021, March.

The Financial Supervision Commission notifies all insurance intermediaries that with a decision of a meeting of the FSC held on 23.02.2021, the following have been adopted:

1. Guidelines regarding the interpretation and application of Art. 292, para. 2 and 3, Art. 304, para. 2 and 3, Art. 316, para. 1, Art. 317, para. 3 and Art. 321b, para. 2 of the Insurance Code in connection with the provision, documentation and reporting of continuing professional training and development of distributors of insurance products, which were accepted in connection with numerous inquiries received by the Insurance Supervision Department from distributors of insurance products regarding documentation and reporting of continuing professional training and development of distributors of insurance products in accordance with the Insurance Code and with a view to unifying the procedure and manner of provision, documentation and reporting of continuing training.

2. Guidelines regarding the interpretation and application of Art. 290, para. 2 and 3 of the Insurance Code in relation to the handling of complaints from users of insurance services by insurance intermediaries, in accordance with the Guidelines on complaints handling by insurance intermediaries (EIOPA-BoS-13/164 EN) issued by the European Insurance and Occupational Pensions Authority (EIOPA). The Financial Supervision Commission (FSC) has adopted a decision of 14.07.2014 that it intends to comply with the above guidelines. At the time of the decision, the repealed Insurance Code does not contain provisions that would allow the FSC to take action to implement the guidelines. The current IC contains the provision of Art. 290, which regulates complaints handling by insurance intermediaries. This provision contains general regulations, and the provision of Art. 9, para. 4 of the IC allows the FSC to adopt guidelines in connection with the application of the requirements of the EIOPA guidelines.

3. Practice regarding the establishment of facts and circumstances during on-site inspections of insurance intermediaries, adopted in view of the need to disclose the checklists used by the FSC to establish circumstances during on-site inspections of intermediaries; these lists will be publicly available to the supervised entities – insurance brokers, insurance agents and intermediaries offering insurance products as an ancillary activity.

 The Social Insurance Supervision Department of the FSC announced the preliminary results of the supplementary pension insurance activity for 2020. The information was obtained on the basis of the reports and references submitted by the pension insurance companies to the Financial Supervision Commission. The data on distribution of insured persons by sex and age as of 31.12.2020 have also been published.

 The total number of insured persons in the four types of pension funds as of 31.12.2020 is 4,819,139 people, increasing compared to 31.12.2019 by 1.18 per cent.

 In the system of the supplementary pension insurance as of 31.12.2020, BGN 17,294,294 thousand of net assets have been accumulated. Compared to the end of 2019, the net assets of pension funds increased by 10.67 percent.

 The total revenues of the pension insurance companies for 2020 amount to BGN 217,020 thousand and increased by 8.88 per cent compared to the reported revenues for 2019. The net financial result of the companies as of 31.12.2020 amounts to BGN 58,432 thousand

 Detailed information on the preliminary results of the supplementary pension insurance activity for 2020 and on the insured persons and the accumulated funds as of 31.12.2020 by sex and age are available in the section: Social Insurance activity/ Statistics / Statistics and analysis / 2020.

ESMA launches Common Supervisory Action with national competent authorities on the supervision of the costs and fees of Undertakings for the Collective Investment in Transferable Securities (UCITS) throughout the European Union

The joint supervisory action will take place in 2021. The purpose of this action is to establish whether the rules and legal framework regarding the obligation for investors not to be charged illegitimate costs are being complied with. Supervision of costs and fees is a key factor in ensuring investor confidence in the financial markets.

The full ESMA communication can be found at: ESMA launches a Common Supervisory Action with NCAs on the supervision of costs and fees of UCITS (europa.eu)

 The presented final data on the value and number of paid and filed claims under Motor Third Party Liability Insurance, including by risk groups, as of 31.12.2020 are published on the FSC website – www.fsc.bg, section “Insurance activity”, “Statistics”, “Non-life Insurance”, “2020”. 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.

Regarding an inquiry by Nova TV in the case “9-year-old girl must repay a loan inherited from her deceased mother”, so far the Financial Supervision Commission has not received a complaint from the heirs of the deceased. In view of the specifics of the case and in order to respond to public concerns, the Chairman of the Financial Supervision Commission initiated investigation at the Commission’s own initiative, ensuring that it would take all necessary measures within its legal powers to conduct a detailed and urgent inspection on the case.

In December 2020, the FSC received notifications from the competent authorities of Member States regarding the performance (registration or termination of notification) of activities by insurance companies and insurance intermediaries for a total of 56 (fifty-six) companies based in other Member States of the EU, incl. notifications for extension of the scope of the performed activity or provision of information for the change of addresses and representatives and transfer of insurance portfolios.

For the period 01.12.2020 – 31.12.2020 the FSC received a notification from the supervisory competent authority of Iceland regarding the intention of an insurance company based in Iceland 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 notification in respect of insurers, established in EU Member States, which have declared their intention to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services.

As of the end of December 2020, the number of insurance companies based in other EU and EEA Member States which have notified the FSC of their intention to operate on the territory of the Republic of Bulgaria under the principle of freedom to provide services, amounts to 649 (six hundred and forty-nine).

In December, the FSC decided at its meeting held on 10.12.2020 to send a notification to the competent supervisory authority of the Republic of Austria, which provided information in connection with the notification received by the FSC about the conditions under which a branch of Porsche Versicherungs AG may carry out insurance activities on the territory of the Republic of Bulgaria, under Class 3 “Land vehicles (other than railway rolling stock)” of Section II of Annex № 1 to the IC, under the terms of the right of establishment (through a branch).

In December 2020, the FSC received 29 (twenty-nine) notifications from the competent EU supervisory authorities regarding the intention of insurance intermediaries based in EU Member States to carry out insurance intermediation activities in the territory of the Republic of Bulgaria under the terms of freedom to provide services.

There are 6 (six) insurance intermediaries for which notifications has been received by the competent authorities of the EU Member States of their intention to suspend the activity of insurance intermediation on the territory of the Republic of Bulgaria under the terms of freedom to provide services or the right of establishment.

As of 31 December 2020, the insurance intermediaries from Member States that have stated their intention to carry out insurance intermediation activities on the territory of the Republic of Bulgaria under the terms of freedom to provide services or the right of establishment (through a branch) are 3,123 (three thousand one hundred and twenty and three).

In December 2020, the FSC sent 6 (six) notifications to the competent authorities of EU and EEA Member States about the intention of insurance companies based in the Republic of Bulgaria to operate on their territory, or to withdraw their intention.

The FSC has sent a notification to the competent supervisory authority of the United Kingdom regarding the intention of Euroins Insurance AD to operate on the territory of the UK under the terms of the right of establishment (through a branch).

At the same time, 5 (five) notifications were sent to the competent supervisory authority of the United Kingdom regarding the withdrawal of the intention of Bulstrad Vienna Insurance Group AD, Bulstrad Life Vienna Insurance Group EAD, Asset Insurance AD, DallBogg: Life and Health AD and BAEZ EAD to operate on the territory of the UK under the terms of freedom to provide services.

The total number of insurance companies based in the territory of 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 01.12.2020 – 31.12.2020, 1 (one) notification was sent to the competent supervisory authorities of Romania, Italy, Germany, France, Greece, Spain, the Netherlands, Malta, Croatia, Poland and Cyprus regarding the intention of insurance company broker Accord EOOD to carry out insurance intermediation activities on their territory under the terms of freedom to provide services.

At the end of the period, the total number of insurance intermediaries based in the Republic of Bulgaria which declared their intention to carry out insurance intermediation activities in the territory of EU Member States under the terms of freedom to provide services or the right of establishment, increased to 52 (fifty two) intermediaries.

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

The Financial Supervision Commission initiates proceedings for the issuance of a general administrative act – Decision for determining the amount of minimum percentages, according to Art. 91, para. 3, item 2 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 (Ordinance No. 53), as well as the period for their application. The draft act can be found on the FSC website in the section “Public consultations” (available in BG version).

The proceedings for the issuance of a general administrative act, opened on 06.01.2021 – Decision for determining the amount of minimum percentages, according to Art. 91, para. 3, item 2 of Ordinance No. 53, have been closed. The Financial Supervision Commission initiates proceedings for the issuance of a general administrative act – Decision for determining the amount of minimum percentages, according to Art. 91, para. 3, item 2 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 (Ordinance No. 53), as well as the period for their application. The draft act can be found on the FSC website in the section “Public consultations” (available in BG version).

The proceedings for the issuance of a general administrative act, opened on 06.01.2021 – Decision for determining the amount of minimum percentages, according to Art. 91, para. 3, item 2 of Ordinance No. 53, have been closed.

The Financial Supervision Commission (FSC) reminds all supervised entities that the deadline for paying in full the annual fees for general financial supervision, including for processing the mandatory current and periodic information, and for conducting inspections (annual fees) for 2021 is until 31 January of the current year.

The amount of the annual fees for general financial supervision is determined in Section II of the Tariff for fees collected by the Financial Supervision Commission – Annex to Art. 27, para. 1 of the Financial Supervision Commission Act.

Interest for delay is due on the fee not paid within the deadline according to Art. 27, para 5 of FSCA. In case of non-payment of due fees, the Commission and its bodies may refuse to provide administrative services to the supervised entity until the fulfilment of their obligation to pay the fee, together with accrued interest for delay and costs of enforcement proceedings, in cases provided for in Art. 27, para. 5 of the FSCA.

Payments may be made at the cash desk of the Financial Supervision Commission or at the following bank account with the BNB:

IBAN: BG95BNBG96613000141501

BIC: BNBGBGSD

 For the purpose of informing and transparency to the Bulgarian public on the case of Certasig-Insurance and Reinsurance Company AD, registered in Romania, and in addition to the news published on 30.12.2020 the Financial Supervision Commission informs the persons who have claims from the company that there is information related to the protection of the rights and interests of users of insurance services on the website of the Romanian Guarantee Fund for Policyholders (GFP).

 Short guidelines for policyholders and beneficiaries from abroad in relation to the Certasig case are available in English at https://www.fgaromania.ro/wp-content/uploads/2020/09/Ghid_Certasig_en_.pdf. The document contains synthesized 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.

 Forms for claims to the Romanian Guarantee Fund for Policyholders in English are available the website https://www.fgaromania.ro/en/claimant-forms/. In view of the instructions given in the guidelines for policyholders and beneficiaries that claims against the Romanian Guarantee Fund should be made in Romanian, they are also available in Romanian on the following website: https://www.fgaromania.ro/formulare/.

 According to the published information, 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 now file their claims to the Romanian Guarantee Fund for Policyholders in Romania. Claims can be filed directly in the headquarters of the Romanian Guarantee Fund, by post (registered letter with confirmation of receipt), by e-mail or in other ways that guarantee submission and confirmation of receipt.

 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.