The Association of Bulgarian Insurers (ABZ) remains open to dialogue and to identifying practical solutions that simultaneously ensure the financial stability of the insurance sector, protect road users and address the needs of motorcycle owners. For this reason, ABZ calls for the public debate on the issue to be conducted constructively—on the basis of objective data, taking into account the actual actions of all stakeholders and the prevailing market conditions.
ABZ supports discussions on more flexible solutions for motorcyclists and will participate in a working group established by the Financial Supervision Commission (FSC) to prepare legislative amendments related to the introduction of seasonal insurance for motorcycles. At the same time, it should be noted that there are already insurers on the Bulgarian market offering seasonal motorcycle insurance. In addition, annual Motor Third Party Liability (MTPL) insurance policies are available with the option of paying the premium in instalments.
With regard to seasonal insurance, it is important to emphasise that this does not necessarily mean a substantially lower premium. The reason is that motorcycle claims are not evenly distributed throughout the year but are concentrated during the active riding season, when motorcycles are used most intensively. As a result, the premium depends not only on the duration of the insurance cover but also on the intensity of vehicle use during the insured period. Consequently, it should not be expected that the premium for a six-month seasonal policy covering the active riding season would be half the premium of an annual policy.
With respect to MTPL premiums for motorcycles, some price adjustments have indeed been observed in recent months. According to FSC data, the current average premium for a motorcycle is EUR 81, compared with approximately EUR 100 in April, with prices ranging from EUR 44 to EUR 120 depending on the insurer. This development is also linked to a gradual return to more sustainable market levels following the exit of an insurer that had offered MTPL insurance below cost for a number of years.
Another factor affecting motorcycle insurance is the segment-specific risk associated with non-payment of instalments under policies paid in instalments. According to FSC data for 2023 and 2024, more than 80% of policies paid in instalments had two or more unpaid instalments. As a result, the premiums actually collected were significantly lower than those originally written. In 2024, insurers collected only 42.9% of written premiums, while in 2023 the figure was just 30.8%. At the same time, the value of claims arising from accidents caused by motorcyclists holding valid insurance exceeded the premiums actually collected in both years. This is a specific factor affecting both risk assessment and insurers' market behaviour in this segment.
The average premium for Motor Third Party Liability (MTPL) insurance remains well below the overall increase in prices across the economy.
The calculation of MTPL insurance premiums is based on actuarial assessments that take into account a wide range of factors, including regulatory requirements regarding premium adequacy, to ensure that sufficient funds are available to compensate injured parties.
Among the main factors influencing MTPL premiums are claim frequency and the amount of claim payouts. Claim costs, in turn, are affected by a number of economic factors, including the prices of spare parts, repair services, medical services and the overall increase in prices across the economy.
According to data from the National Statistical Institute and the Guarantee Fund, over the past five years (January 2021 – May 2026), the average MTPL premium for the market has remained well below both inflation and the growth in many of the costs that affect claim payouts. During this period, the average MTPL premium increased by 6.5%, compared with cumulative inflation of around 42% and significantly higher increases in several key cost indicators affecting claims. For example, repair and labour costs increased by more than 105%.
Against this background, some increase in premiums has indeed been observed in recent months, although the trend varies across different categories of vehicles. According to Guarantee Fund data, the average market premium increased by around 7% between December 2025 and May 2026, while increases for certain vehicle categories reached 20–30%.
However, data on the average annual MTPL premium show that this increase does not represent unusually high price levels but rather a return to those prevailing in the market during 2021–2022. The average annual premium was EUR 160.5 in 2021, EUR 152.8 in 2022, EUR 144.1 in 2024 and EUR 150.3 in 2025. By comparison, the average premium in May 2026 stood at EUR 160.4.
A similar trend can be observed for the most common vehicle category—passenger cars. The average annual premium was EUR 134.7 in 2021, EUR 127.6 in 2022, EUR 124.6 in 2024 and EUR 128.9 in 2025, reaching EUR 135.6 in May 2026. These figures show that current premium levels are broadly comparable with those recorded in 2021 and do not support claims of a significant increase in the cost of MTPL insurance.
The observed price developments should also be viewed in the context of rising claims costs. In 2025 alone, claim payouts under MTPL insurance increased by 31% compared with the previous year. The premium developments seen in 2026 are also linked to the exit from the market of an insurer that had offered MTPL insurance below cost for many years, resulting in a gradual return to more sustainable market pricing.
ABZ emphasises that consumer protection cannot be measured solely by the price of insurance. MTPL insurance exists to ensure that people injured in road traffic accidents receive the compensation to which they are entitled. Therefore, the sustainability of the system and the availability of sufficient funds to pay claims are just as socially important as the affordability of insurance. Maintaining the balance between these two principles lies at the core of both the European and the national framework governing compulsory motor insurance.
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