Financial Supervision Commission (FSC) threatened six Bulgarian insurers with sanctions over the low premiums they charge on the mandatory third party motor insurance, Sega daily reported on October 30, quoting a statement by Ralitsa Again, deputy chair of FSC.

Several days earlier, the six companies were handed letters warning them that their premiums were too low and needed to be corrected. The insurers were even under the threat of losing their licences if they failed to calibrate their tariffs by November 9, Again said, as quoted by Sega. She refused to name the would-be perpetrators but said they included smaller and larger companies.

FSC had doubts that, with the premiums the insurers were charging, they would be able to cover possible damages in cases of accidents caused by their customers. Therefore the regulatory body ordered them to recalculate the premiums. The FSC had already imposed fines on actuaries of the insurers over negative technical results.

FSC statistics showed that third party motor insurance premiums and Green Card insurance premiums fell to 125 million leva and 3.8 million leva by end-July 2007 from 129 million and 22.3 million leva a year earlier. The drop happened despite the increased liability risk after border control for outbound Bulgarian motorists heading to other EU countries had been lifted.