Balgarianovinite.com Four grounds for revoking the insurance license of the insurance company DallBogg: Life and Health JSC were presented by the Chair of the Financial Supervision Commission (FSC), Vasil Golemanski, at a press conference, where the regulator outlined details of the decision announced on Tuesday.
Golemanski said that revoking a license is the most severe possible measure applicable to any supervised entity and explained that such a step requires very serious justification. “We have them,” he said, noting that over the course of a year, through ongoing communication with European supervisors, the European supervisory authority, and the insurer itself, the commission had identified a number of issues concerning the functioning of DallBogg that run counter to good market practice in the insurance sector.
He explained that, under a decision dated April 9, the insurer was required to submit a short-term, realistic plan to restore eligible own funds or reduce its risk profile in order to ensure compliance with the minimum capital requirement. On May 11, 2026, the company submitted such a plan, which the FSC thoroughly reviewed and assessed as clearly inadequate and subsequently refused to approve. According to Golemanski, this is one of the main reasons for the license revocation.
He further noted that inspections and technical assistance from the European regulator had revealed a significant “gap” in DallBogg’s technical reserves – an estimated shortfall of nearly EUR 280 million. In such cases, legislation requires a strict sequence of steps for restoring solvency: within three months of notification, the company must address the deficiency; within one month thereafter it must present a restructuring plan; and within another month the FSC must decide on it. Golemanski said that in this case the FSC did not approve the plan, and therefore, by law, is obliged to revoke the license, as no alternative measure is available.
The second ground is failure to comply with imposed compulsory administrative measures. He said that on April 2 the FSC imposed a ban on disposing of assets, but the company nevertheless made payments in violation of that measure.
The third ground involves “serious and systematic violations” in conducting insurance business in other EU countries under the freedom to provide services regime and the Green Card system. According to Golemanski, this constitutes a breach of proper market conduct and is also grounds for license revocation.
The fourth ground relates to refusal to pay compensation claims where final court rulings have been issued in Poland, Romania, and Italy.
Golemanski stated that the FSC is obliged to protect the rights of insured persons and ensure that companies maintain sufficient technical reserves to pay claims. He gave examples of serious road traffic accidents where, in his view, compensation payments had been inadequate. He stressed that to properly pay claims, an insurer must maintain adequate reserves, operate normally, and set aside funds based on statistical analysis and actuarial calculations, so that it can cover damages even without new premium inflows.
Deputy FSC chair responsible for insurance supervision, Plamen Danailov, explained that the revocation of the license does not automatically terminate existing policies. They remain valid, and the company is still obliged to service policyholders. Any claims arising from today onwards should still be addressed to the company, he said. Danailov added that the FSC has appointed two administrators who will take over management of the company from the former executive directors.
He clarified that insurance claims continue to be submitted to the company, which must process them. If the company is unable to pay compensation under third-party liability insurance, claims will be covered by the Guarantee Fund.
Deputy FSC chair responsible for pension supervision, Diana Yordanova, said the commission continues to closely monitor the actions of related structures, including the pension insurance company and custodian banks.
The executive director of the Guarantee Fund, Maksim Kolev, stated that the fund has sufficient resources to meet obligations arising from the insurer’s identified reserve shortfall.
In early April, the Financial Supervision Commission imposed a ban on the DallBogg: Life and Health Insurance Company from concluding new insurance or reinsurance contracts across all or specific classes of insurance, as well as from extending the terms of existing contracts or expanding their coverage.
The FSC said the ban is intended to protect the interests of policyholders and to ensure the company’s solvency. The measure came in response to violations of market conduct rules and breaches of the Insurance Code.
Protests, organized by the DallBogg: Life and Health Insurance Company and its clients in May in front of the Council of Ministers building, demanded the resignation of Financial Supervision Commission’s leadership team. The demonstrators rallied against the rising cost of the mandatory insurance against civil liability. Financial Watchdog Revokes DallBogg Insurance License Over Capital Shortfall, EU Violations, Unpaid Claims 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-06-10 05:25:15 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law