The Bulgarian Export Insurance Agency (BAEZ), part of the system of the Ministry of Economy, Investments and Industry (MEII), has taken concrete steps to implement a programme aimed at limiting increases in the cost of Motor Third-Party Liability Insurance for heavy goods vehicles engaged in international transport.
The programme has been developed as a temporary market measure in response to the significant rise in insurance coverage costs in recent months, driven by limited reinsurance capacity and increased claims levels within the sector. Its objective is to ensure market stability and preserve the competitiveness of Bulgarian international hauliers. The expected benefit for transport companies is a limitation of increases in insurance premiums. It should be recalled that representatives of the sector held a series of meetings with the Ministers of Transport, Economy and Finance to discuss the situation.
The main instrument of the scheme is the provision of a guarantee by BAEZ to reinsurers. The guarantee is activated in the event of high claims levels and is intended to provide temporary liquidity in cases where payments from reinsurers to insurance companies are delayed. Following any payment made under the guarantee, BAEZ is entitled to recover the respective amounts from the relevant reinsurer.
The mechanism does not transfer the risks associated with the ordinary activities of the private sector to the state.
BAEZ’s liability is triggered only where claims levels significantly exceed normal thresholds, ranging between 120% and 150% of collected premiums. Outside this range, the risk remains entirely with private reinsurers.
The programme is temporary and will remain in force until 1 June 2027. Its expected effect is to limit increases in Motor Third-Party Liability Insurance premiums to approximately EUR 2,000 per lorry.
The guarantee scheme also includes a number of measures aimed at monitoring and reducing claims levels. These include the mandatory installation of dashboard cameras with sufficient recording storage capacity, the provision of access to tachograph data, and the implementation of specialised procedures in the event of road traffic accidents.
The objective is to reduce cases in which Bulgarian hauliers are wrongly assigned liability and to improve risk management across the sector.
The BAEZ guarantee was issued last week, and from the beginning of this week the private insurance market will start offering Motor Third-Party Liability Insurance to international hauliers at prices comparable to those available on international markets.
Through these measures, the state, represented by the Ministry of Economy, Investments and Industry, BAEZ, the Ministry of Finance and the Financial Supervision Commission, together with market participants, aims to provide a more stable and predictable environment for one of the most export-oriented and strategically important sectors of the Bulgarian economy, which provides employment for tens of thousands of Bulgarian families.