Update: Poland to strengthen supervision over foreign (re)insurers

Recently, the Polish government adopted a draft law aimed at introducing changes to existing (re)insurance regulations concerning foreign EU insurers and reinsurers operating in Poland.

Key takeaways include:

• introducing sanctions for exceeding deadlines for the payment of compensation from compulsory insurance (such as MTPL insurance). Those sanctions include the financial penalties to be imposed on the foreign insurer and/or on members of the management board.
• conferring emergency powers to the Polish Financial Supervision Authority (the “PFSA”) allowing for the immediate removal or prevention of infringements of the interests of policyholders, insured persons and persons entitled under insurance contracts. The draft law envisages that the PFSA would be able to impose on foreign (re)insurer all regulatory measures applicable to domestic (re)insurer. Under the draft law the PFSA would also be empowered to prohibit the operation of a foreign (re)insurer in Poland.

For more information, please contact our local CMS expert: Ewa Świderska and Marta Szwarczyńska.