Government backs insurance industry reform
The Council of Ministers approved an amended system for financing the Insurance Guarantee Fund and beneficiaries of insurance contracts for the year 2026. The aim is to protect the rights of policyholders and reduce the likelihood of insurance companies going into liquidation by encouraging mergers between financially sound companies and weaker, financially struggling companies. The system seeks to shift from a reactive approach to insurance company insolvencies to a preventive model that promotes sustainability and stimulates the merger of troubled companies. Incentives such as reduction or exemption of contributions to the Fund for merged or acquiring companies are offered, with the goal of improving resource management and enhancing market confidence.
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