Bonus-malus will reward responsible drivers with lower premium levels (discounts), based on no incident in a determined time horizon, while punishing drivers who caused accidents with a more expensive MTPL tariff. It is worth mentioning that some Bulgarian insurers already have bonus-malus models in their MTPL underwriting policies; the FSC aims to make an MTPL bonus-malus system a universal feature for all domestic insurers.
By introducing the system, the FSC expects that a long-term incentive for responsible driving will be indirectly inserted in Bulgarian automobile driver behavior. In this regard, a new working group has been formed, including experts from the FSC, Ministry of Interior, Ministry of Transport, and Ministry of Information Technology and Communications. The team will work on multiple options for the bonus-malus scheme, to be presented and negotiated with insurance market participants.
The FSC believes that the bonus-malus will be ready to be introduced in Bulgarian insurance market by the end of autumn this year.