How MTPL insurance premiums are determined, why motorcycle seasonality is already factored into them, and whether seasonal MTPL policies are feasible were among the topics discussed by Nikolay Stanchev, Chair of the Association of Bulgarian Insurers (ABZ), during the This Saturday and Sunday programme on bTV on 16 May 2026.
"We understand that the cost of compulsory MTPL insurance is a sensitive issue, particularly at a time when the overall cost of living continues to rise. The reality is that the insurance sector cannot remain unaffected. Spare parts and repair costs have increased significantly, labour costs have risen sharply, and all of this is naturally reflected in insurance premiums," Nikolay Stanchev said.
Over recent years, MTPL insurance premiums have increased only marginally—well below the rate of inflation. In 2025, premiums rose by around 3%, while claim payouts increased by as much as 30%.
Stanchev stressed that any discussion about MTPL insurance premiums should begin with the factors that determine them. When setting premiums, insurers take into account a wide range of indicators. Alongside labour and repair costs, claims experience is one of the most important pricing factors.
Motorcycle MTPL insurance also has a specific feature related to payment by instalments. The issue is that although the policy is issued for a full year, many policyholders typically pay instalments only during the months when the motorcycle is actually used. According to data from the Financial Supervision Commission (FSC), this is the case for more than 80% of motorcycle MTPL policies.
"However, this is an annual insurance policy. When an insurer calculates the annual premium, all relevant factors have already been taken into account—including seasonality and the fact that motorcycles are used only during certain months of the year. Paying in instalments does not mean that the full premium is no longer due," Stanchev explained.
According to FSC data, in previous years motorcycle owners paid only around 30–40% of the total MTPL premium. This is one of the main reasons why this market segment operates at a loss. For example, in 2023 collected premiums amounted to approximately EUR 3 million, while claims exceeded EUR 3.2 million—more than the total premium income available not only to cover claims, but also commissions, administrative expenses and technical reserves.
Stanchev also pointed out that there are legal constraints which explain why insurers offer annual MTPL policies. Under Bulgarian legislation, every registered motor vehicle must have valid MTPL insurance in order to be driven on public roads. The only circumstance in which such insurance is not required is when the vehicle has been deregistered.
"If seasonal insurance were introduced, once the policy expires motorcyclists would have only two options: either deregister the motorcycle or purchase a new insurance policy. This largely defeats the purpose of a seasonal policy," the Chair of ABZ said.
He also warned that if the legislation were amended to allow seasonal MTPL insurance without requiring deregistration, there would be a risk that some motorcyclists would continue riding without valid insurance coverage.
Stanchev also noted that seasonal policies would not necessarily be cheaper than annual ones.
"A shorter policy period does not automatically mean a lower premium. Seasonality is already reflected in today's annual MTPL premium. Motorcycle claims are themselves seasonal, and the fact that motorcycles are typically used for only six or seven months each year has already been taken into account when premiums are calculated."
Therefore, if a seasonal policy were to cover exactly those six or seven months, its premium would not differ significantly from that of an annual policy. A noticeably lower premium would only be possible for a much shorter period of cover—for example, two months.
Stanchev also commented on the forthcoming bonus-malus system. The necessary legislative amendments have already been adopted, but two implementing ordinances still need to be approved, while the systems of both the Guarantee Fund and insurers must also be adapted.
"The system is expected to be ready for implementation at the beginning of 2027," he said.
Concluding the interview, Nikolay Stanchev confirmed that ABZ remains open to discussions both with representatives of the motorcycling community and with the relevant institutions in order to examine all factors affecting MTPL insurance premiums and explore possible solutions.
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