In a significant blow to one of Bulgaria's major insurers, the Financial Supervision Commission (FSC) has temporarily banned DallBogg: Life and Health from selling insurance products across the European Union. The ban marks another high-profile failure of a Bulgarian insurer's aggressive international expansion strategy, particularly in the competitive motor insurance market.
The regulator's decision was made on June 10 but was only quietly announced on June 13, after Romania's supervisory authority made the issue public, prompting media coverage.
Effective July 1, the three-month ban prohibits DallBogg from issuing new or renewing existing cross-border policies under the freedom to provide services via the European single passport. While the ban covers all insurance classes, regulatory announcements from other countries make it clear that the core issue lies with compulsory third-party liability (TPL) motor insurance. DallBogg has used aggressively low pricing in this segment to become the market leader by premium income in Bulgaria.
The company currently operates in Romania, Poland, Greece, Italy, and Spain, though a precise ratio of its international versus domestic revenue is not publicly available. Its domestic operations remain unaffected by the ban.
"As a national supervisor, the FSC is in constant contact with DallBogg to ensure the effective protection of consumers," the regulator stated, adding that it is defining the conditions for the ban to be lifted and is collaborating with its European counterparts.
A pattern of problems across Europe
While the FSC has been short on specifics, regulators in other EU member states have been more open. Romania's Financial Supervisory Authority, ASF, revealed it had flagged risks to its Bulgarian counterpart in early 2024, citing "delays in the settlement and processing of claims and non-fulfillment of contractual obligations to clients." DallBogg had rapidly captured a 2.7% share of Romania's TPL market since entering the country in late 2022. The ASF has a history of taking decisive action, having previously revoked the license of another Bulgarian-owned insurer, Euroins, over similar issues.
Meanwhile, Poland's financial supervisor had already banned DallBogg from selling TPL insurance in the country's market in April 2024. It stated that the company's "organizational structure is not adapted to the scale of its intended business," leading to "numerous irregularities in the claims settlement process."
A high-risk business model
The regulatory actions highlight the vulnerabilities of DallBogg's business model, which is heavily reliant on a high-volume, low-margin product. Rapid growth in TPL insurance is often achieved by offering the lowest price, a key factor for consumers of a compulsory product. However, this segment is notoriously unprofitable, with most insurers using it as a loss leader to cross-sell more profitable policies like Casco (comprehensive cover).
DallBogg's portfolio shows extreme concentration. In 2023, the company generated 527 million levs (269.5 million euro) in premium income, with a staggering 451 million levs coming from TPL policies, while Casco insurance accounted for a mere 2 million levs. Data from 2022 shows its TPL income was already diversified, with 140 million levs from Bulgaria, 83.5 million from Italy, 6.8 million from Greece, and 1.8 million from Poland.
History repeats itself
This is not the first time DallBogg has faced international scrutiny. In 2017, the company and then-market leader Lev Inswere accused of systemic violations within the Green Card system-the global framework for settling cross-border motor insurance claims. The Bulgarian insurers were found to be delaying or refusing legitimate payments, leading to the entire Bulgarian insurance sector being placed under special monitoring by the system's governing body, with the threat of complete exclusion.
The resolution of this issue cost the Bulgarian insurance sector years of effort and millions of levs. In a moment of profound irony, the National Insurance Bureau announced the final lifting of the monitoring just days before the FSC imposed its ban on DallBogg.
The insurer is controlled by Tihomir Kamenov, a prominent Bulgarian businessman with a diverse portfolio that also includes major pharmaceutical manufacturing (Tchaikapharma), distribution of medicines (Commercial League), and a private hospital chain (Heart and Brain Center). The group also includes a pension fund of the same name.
In response to the ban, DallBogg stated that the decision is appealable and that it views the suspension as "an opportunity for significant improvement," while categorically denying rumors that it was deliberately canceling policies to avoid payments.
In a significant blow to one of Bulgaria's major insurers, the Financial Supervision Commission (FSC) has temporarily banned DallBogg: Life and Health from selling insurance products across the European Union. The ban marks another high-profile failure of a Bulgarian insurer's aggressive international expansion strategy, particularly in the competitive motor insurance market.
The regulator's decision was made on June 10 but was only quietly announced on June 13, after Romania's supervisory authority made the issue public, prompting media coverage.
