Sanction in the RCA Square: the activity of the Bulgarian insurer Dallbogg, suspended from July 1, 2025. What the Romanian drivers must know

The Financial Supervisory Authority (ASF) announced on Thursday that the activity of issuing insurance policies, including the RCA, of the Bulgarian insurance company Dallbogg, will be temporarily suspended, starting July 1, 2025, due to issues with the payment of damages and the non -observance of the obligations towards the insured. The company is active on the RCA market in Romania in regime of free services (Freedom of Services) starting with November 2024.

The decision was taken in Bulgaria. What issues did ASF signal

According to the legal framework that governs the activity of companies operating through FOS, the decision was taken by the Supervisory Authority in Bulgaria and has direct effects not only on Romania, but also on other European states such as: Poland, Greece, Italy, Spain, where the company is carrying out operations based on the European passport.

Although the competences of the national authorities against the companies supervised by another Member State are limited, ASF acted proactive, signaling in time the risks of conduct identified in the company's activity and requesting the Bulgarian authority, from the first quarter of 2025, a complex analysis of Dallbogg practices.

The issues notified in particular aimed at delaying the settlement and instrumentation of the damage files and not fulfilling the contractual obligations to the insured.

“We want to ensure consumers that the Romanian insurance market is solid and does not face major risks. In order to prevent the recurrence of difficult situations, we have collaborated closely with the European institutions and took measures in advance. The temporary suspension of the activity of the Bulgarian company does not involve additional expenses for the absolutely nobody, or that we are talking about the state, or of all the law. Consumers and to limit any possible escalation of the situation ”, said ASF president, Mr. Alexandru Petrescu.

Dallbogg contracts remain in force. The company is obliged to pay RCA damages

Dallbogg has a market share of only 2.7% of the total valid RCA policies, the equivalent of over 200,000 RCA contracts.

The measure of suspension aims to exclusively issue new policies. The insurance contracts already concluded by Dallbogg remain in force, and the company has the obligation to honor the payments related to the damages and to comply with the contractual clauses.

In the next period, at the ASF initiative there will be a common control, together with the Supervisory Authority in Bulgaria and with the European Insurance and Occupational Pensions (EIOPA), to evaluate the conduct of Dallbogg in Romania.

The checks will include both the way of instrumentation of the damages and the correctness of the distribution of the products, in relation to the requirements of the European Directive on Insurance (IDD – EU 2016/97) and with the national legislation.

In this context, Romania is an active part in a Pan-European supervision process, assuming the responsibility to contribute to the early correction of the dysfunctions that could have acquired systemic dimensions.

In the first three months of 2025, the RCA insurance market in Romania registered an increase of 11%, compared to the similar period of last year, reflected by a total volume of the gross premiums of approximately 2.4 billion lei.

This value includes both the subscriptions made by the local authorized companies and those carried out by companies that work based on the Freedom of Establishment and Freedom of Services regimes. At the same time, the number of RCA policies concluded exceeded the threshold of 1.8 million, which represents an increase of 8% compared to the first quarter of the previous year.

From the perspective of financial stability, the market is noted by maintaining prudential indicators at comfortable levels.

The rate of coverage of the solvency capital requirement (SCR) was located at a level of 159%, while the minimum capital requirement (MCR) was 376%. These parameters highlight the structural solidity of the insurance sector, suggesting a robust risk absorption capacity and protecting the interests of the insured in the medium and long term.