Plamen Danailov, Deputy Chairman of the Financial Supervision Commission, responsible for insurance, commented on the case with the insurer “DallBogg“.
Regarding how the problems at the company were identified and how the license was revoked, Danailov explains that a European coordination platform was already in operation when he took office: “When we took office on May 15 last year, a cooperation platform had already been launched by the European Supervisory Authority at the request of the Polish Supervisory Authority, which had already suspended the activities of “DallBogg“ due to their poor market behavior.“
He adds that several countries have joined this initiative: “The Italian, Romanian, Greek and Spanish supervisors also joined this platform due to poor market behavior, expressed in slow processing of claims, non-payment of claims or partial payment.“
According to him, this is precisely what necessitated action: “That is, we had no other choice but to act proactively, to analyze the situation, in which we made sure that these statements of colleagues from other supervisors were true and imposed the first measure that we imposed – suspension of the company's cross-border activities.“
Danailov also points to subsequent findings: “Subsequent inspections by the commission established that the company also has a capital shortage, i.e. the money has not been invested properly and is insufficient to meet the claims of all people who have been injured and have claims against the company.“
He adds that an external assessment has also been made: “Based on all supervisory actions, including those supported by the European Supervisory Authority, which conducted an independent assessment of the company, calculations have been reached that the company lacks about 280 million euros to be able to pay possible claims that may arise based on damage caused by insured cars, mainly.“
Regarding allegations that Danailov intends to take over the company for intermediaries, he is categorical: “First, these are absurd allegations thrown into space.“ and adds: “That is, the claims that there is some political pressure are just empty claims and there are no facts for them. The European supervisor conducted an independent assessment of the company's financial situation and found that there is a shortage of financial resources between 550 million and 640 million leva.“ When asked about an intermediary, he stated: “This is a frivolous claim.“