Bulgarian insurer DallBogg exits Romanian market amid compliance issues
<p>Bulgarian insurance company DallBogg will suspend its operations, including the issuance of mandatory motor third-party liability (RCA) policies, in Romania and other European markets starting July 1, 2025, due to unresolved claims and failure to meet obligations to policyholders, Romania's Financial Supervisory Authority (ASF) announced on June 13.</p>

<p>DallBogg entered the Romanian RCA market in November 2024 under the Freedom of Services (FoS) regime, which allows insurers licensed in one EU country to operate across the bloc.</p>

<p>The decision to suspend operations was made by Bulgaria's financial supervisory authority and will apply not only in Romania but also in countries where DallBogg has operated, including Poland, Greece, Italy, and Spain.</p>

<p>"The problems reported mainly concerned the delay in resolving and processing claim files and the failure to fulfill contractual obligations towards policyholders," ASF stated, adding that it had identified conduct risks and alerted the Bulgarian regulator as early as the first quarter of 2025, requesting a comprehensive review of DallBogg's operations.</p>

<p>ASF President Alexandru Petrescu sought to reassure policyholders, stating: "The Romanian insurance market is solid and does not face major risks. We have used all available legal levers to protect consumers and to limit any possible escalation of the situation."</p>

<p>He emphasised that the temporary suspension would not lead to financial losses for the state, insured individuals or the guarantee fund, noting that ASF had worked closely with European institutions to address the situation promptly.</p>

<p>While DallBogg held a modest 2.7% share of the Romanian RCA market, ASF said the associated risks had been assessed in line with regulatory standards. The company's short-lived presence in Romania highlights ongoing vulnerabilities in cross-border insurance supervision within the EU's single market framework.</p>

<p><em>iulian@romania-insider.com</em></p>

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