НЕОБХОДИМОСТ ОТ „TITLE INSURANCE“ НА БЪЛГАРСКИЯ ЗАСТРАХОВАТЕЛЕН ПАЗАР
Need for title insurance on the Bulgarian insurance market

Summary/Abstract: Purpose. The scientific work aims to present a reasoned argument for the importance and benefits of applying title insurance as a specific type of insurance and a working tool – an alternative approach to counteract the risk of fraud in acquiring real property. Results. Despite the lack of specific statistical data on the number of property frauds, the available statistical information confirms the thesis that the number of frauds in Bulgaria in recent years follows a downward trend. Notwithstanding this fact, the number of frauds (including property frauds) remains relatively high, which raises the need for alternative additional protection for the persons acquiring property. In this respect, Bulgarian insurance practice could also guarantee financial compensation for the realization of property fraud risks, as is the practice in developed insurance markets. Scientific novelty. The research carried out in this paper is based on official statistical data published by the National Statistical Institute and information provided by the Prosecutor’s Office of the Republic of Bulgaria on fraud under Articles 209–213 of the Criminal Code of the Republic of Bulgaria for the period 2007–2020 (obtained under the Access to Public Information Act). Referring to the world theory and practice the essence and the main characteristics of title insurance are analyzed. This paper proposes to introduce a new product for the Bulgarian insurance market and outlines some of its main parameters. Practical value. Starting from understanding property fraud as an illegal economic activity and considering the same as a real risk for citizens and businesses investing in real estate, the possibility of applying title insurance inevitably arises. The latter is a proven instrument, still, little known and not applied in Bulgaria, which aims to guarantee the security of insured persons – investors, when acquiring real estate, by compensating them in case of losses.

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