New horizons

Good morning,

It is an honour to join you today. I want to thank the FSC's Chairperson Mr. Golemanski for inviting me to share EIOPA's vision as we stand at the threshold of new horizons for Europe's insurance and pensions sectors.

We meet at a time of profound change. The world is struggling with the dual challenges of economic uncertainty and rapid technological transformation. Climate risks are no longer a distant threat but a present reality, while digitalisation is reshaping how we supervise, how we serve consumers, and how we ensure the stability of our financial systems.

In this context, the theme of new horizons proposed by the FSC is not just aspirational, it is a necessity.

Today, I'd like to share with you how the European supervisory community is building on this momentum through three essential pillars: building consumer trust, strengthening resilience, and deepening collaboration.

1. Building consumer trust

For consumers, trust translates into confidence that their insurance claims will be paid in a timely manner and adequately, that their long term savings - being this pensions or life insurance products - will be safe and will deliver good and adequate returns. In summary both from a savings and risk protection perspective consumers associate trust with products which offer value, being this at the time of submitting a claim or receiving back lifetime savings.

In Bulgaria, insurance penetration remains low, particularly in life and health insurance: according to our latest Eurobarometer 29% of Bulgarian did not own a life or savings product vs 25% EU average and 22% of Bulgarians did not own a non-life insurance product vs 9% of EU average.[1] In a market where households face tighter budgets, trust plays an even more critical role; in fact, in Bulgaria trust in insurance and pensions providers remains low, as only 47% of Bulgarians trust their insurer will treat them fairly and 37% of Bulgarians trust their pension provider will treat them fairly. At the EU level trust is also relatively low but higher than in Bulgaria (50% of consumers trust insurers and 45% of consumers trust pension providers).[2] Building this trust is critical to market development and the protection of consumers.

But we also observe market improvements: our recent costs and past performance of insurance based investment products (IBIPs) - keeping however in mind that IBIPs penetration remains low in Bulgaria - shows clear areas where the Bulgarian market performs well. I will give a couple of examples here: Bulgaria has higher return than the EEA average for low risk unit-linked and profit participation products and lower costs for unit-linked products in general. However, we also see areas where some issues remain, such as lower returns than the EEA average for high risk unit-linked products and higher costs than the EEA average for profit participation products.

The FSC's journey over the past few years offers an example of how supervisory actions can strengthen trust in the regulatory system. The cooperation with EIOPA has been steady and ongoing as demonstrated by the cooperative engagement in market-wide exercises like Balance Sheet Reviews, participation in Colleges of Supervisors, fulfilment of Exchange Rate Mechanism's related commitments and participation in collaboration platforms. The FSC has also more actively participated to a number of EIOPA's initiatives on the conduct side and most notably it will be part of the second coordinated mystery shopping exercise.[3]

But as the Bulgarian insurance market continues to evolve, new vulnerabilities emerge. The recent supervisory actions of FSC are a reminder that our work is never truly done. Supervisors must remain vigilant, ensuring that the progress made is consolidated and built upon.

This requires consistent effort, transparency in regulatory processes, and a commitment to putting consumers first. Also, collaboration with other NCAs. As the Bulgarian market matures there may also be an increase in incoming cross-border business; the good cooperation the FSC has established with other EU NCAs can definitely be leveraged upon.

Overall, Bulgaria's progress shows what can be achieved, but the journey continues.

2. Strengthen Resilience

Resilience is the ability to withstand shocks and adapt to change. For the insurance and pensions sectors, this means applying Solvency II and preparing for evolving frameworks like the Insurance Recovery and Resolution Directive (IRRD) and other relevant regulatory requirements, while addressing a range of risks, from climate change to cyber threats, and from economic volatility to demographic shifts.

Climate change is one of the most pressing challenges we face. For Bulgaria, a country vulnerable to extreme weather events such as floods and droughts, the impact on the insurance sector is real. The raise of climate-related events requires that all stakeholders - government, consumers, industry, and civil society in general - work together on closing the protection gap, and that the sector is ready to withstand climate shocks.

On a different topic, digitalisation offers immense opportunities, from improved efficiency to better customer experience. However, it also introduces new risks, particularly in cybersecurity and data privacy. Bulgaria's insurance sector, like many others, is increasingly reliant on digital tools, making it vulnerable to cyber threats. Consumers also need to be protected and it is important that digitalisation benefits them rather than harms them. According to EIOPA's 2025 Eurobarometer survey, 16% of Bulgarians gathered information online on insurance before purchasing and 6% have used general purpose AI chatbots.[4]

This means that supervisors and market participants need to build capacity to ensure they have the skills and tools to manage digital risks. It is also essential that proportionality is applied by recognising that smaller insurers may not have the same resources as larger players. And they need to be doing this while cooperating with other competent authorities to share best practices and respond to cross-border threats.

Finally, on pensions, Bulgaria's pension system, like many in Europe, also faces the dual challenge of an ageing population and low contribution rates.

Across Europe, traditional pension systems are approaching a structural turning point. The need for imminent reforms in many member states offers a timely opportunity to transition to a stronger, more diversified and more sustainable model. Demographic change is reshaping the foundations of our social systems. People live longer - which is a success story - but the number of workers relative to retirees is steadily declining. Some thirty years ago, there were 5 working-age people for every pensioner on our continent. Today, we have three. By the middle of this century, there will be fewer than two on average. Many member states rely heavily on unfunded pay-as-you-go systems, where today's workers finance today's pensions without generating investment returns. These systems have served Europe well for decades, but they are running on borrowed time and into unsustainable territory. At the same time, governments face significant spending pressures elsewhere. Europe cannot rely on unfunded public pensions alone to ensure adequate retirement income for its citizens.

Hence, it is important we work together to both trust in pensions systems close pension gaps.

Resilience is not just about surviving shocks. It is about thriving in the face of change. By preparing for climate risks, embracing digitalisation safely, and addressing the current and future challenges in the Bulgarian market, the FSC can build a sector that is not just stable but also dynamic and forward-looking.

3. Ensure effective cooperation

The third pillar, collaboration, is paramount. In a single market, where insurers can operate across Europe under a single licence, and where home supervisors retain prudential responsibility for supervised entities throughout the Union, neither supervisors nor insurers act in isolation. Bulgaria's insurance market like other markets in the EU, is deeply interconnected with the rest of the EU. Risks don't stop at borders. Cross-border supervision is therefore essential.

EIOPA's role is to facilitate the exchange of knowledge and ensure effective collaboration. The FSC's active participation in the European discussions is a clear sign of its commitment to continuous improvement.

Finally, collaboration must extend beyond supervisors to include the industry itself. Insurers, pension funds, and other market participants are partners in building a resilient and consumer-centric sector.

As we look to the New Horizons, the path ahead is clear:

• Supervisors will continue to build trust by reassuring customers that the market and the players are robust, that a sound and credible supervisory system is in place ensuring that claims are paid as promised in times of need,
• Together we can strengthen resilience by preparing for the risks of today and tomorrow, whether they come from players, climate change, digitalisation, or other sources.
• We are committed to deepening collaboration, recognising that coordinated actions are far greater than the sum of individual efforts.

Bulgaria's progress over the past few years is encouraging. It shows what can be achieved with supervisory cooperation with a shared sense of purpose. But the journey does not end here. The new horizons we seek, of a sound and stable, innovative, and consumer-focused insurance and pensions sector, require our continued commitment.

At EIOPA, we will continue to work with the the FSC and other national supervisors in their efforts to build trust, enhance resilience, and foster collaboration.

Thank you.

[1] Eurobarometer 2025: consumer trends in insurance and pension services

[2] Eurobarometer 2024: consumer trends in insurance and pension services

[3] EIOPA to undertake second coordinated mystery shopping exercise across several EU Member States

[4] Eurobarometer 2025: consumer trends in insurance and pension services