The Bulgarian insurance market has been in turmoil since the insolvency of the Cypriot company Olympic and its Bulgarian branch in the month of August. Nearly 200,000 Bulgarians with a compulsory 'civil liability' vehicle insurance policy with the company have been left without cover.
The company, which filed for liquidation on 10 August, has had its licence withdrawn on the grounds of its insolvency. The management of the case by the Bulgarian Financial Supervision Committee (KFN) has been called into question and citizens who have lost their compulsory 'civil liability' vehicle insurance with the company are calling for compensation.
In Bulgaria, observers stressed that legislative shortcomings do not allow policyholders to be fully covered if the insurer comes from another EU country. The Bulgarian parliament has asked the finance minister, Vladislav Goranov, to look into all possibilities under Bulgarian and EU law to compensate those who have lost their vehicle insurance.
When asked on Thursday 23 August whether the European Union may lend a hand, one of its spokespersons, Christian Spahr, reiterated that it is the obligation of the supervisory authority of the country of origin to continue to supervise its insurers, including in the event of cross-border activities, and confirmed that compensation remained a matter for the national authorities.
“Currently, the compensation of the policyholder in the case of an insurer insolvency is not regulated at EU level”, he added. (Original version in French by Marion Fontana)