Insurance laws Poland
Poland's insurance legal framework is structured to ensure consumer protection, financial stability, and compliance with both domestic and European Union standards.
📜 Key Legislation
1. Act of 11 September 2015 on Insurance and Reinsurance ActivityThis foundational law regulates the conduct of insurance and reinsurance businesses in Poland It outlines the legal basis for pursuing insurance and reinsurance activities, including the establishment of insurance undertakings, the operation of insurance mediation, and the supervision of insurance and reinsurance activities The Act classifies insurance risks into life and non-life categories and mandates that insurance undertakings operate as joint-stock companies, mutual insurance undertakings, or European companies
2. Act of 21 July 2006 on Financial Market Supervision This Act establishes the Polish Financial Supervision Authority (KNF) and delineates its powers to oversee various financial sectors, including insuranceThe KNF is responsible for licensing, regulating, and supervising insurance entities to ensure the stability and transparency of the financial market
🏛️ Regulatory Authority
*Polish Financial Supervision Authority (KNF)
The KNF is the central regulatory body overseeing the Polish insurance marke. It is responsible fo:
Issuing licenses to insurance and reinsurance undertaking. Monitoring the financial health and solvency of insurance entitie.Ensuring compliance with legal and regulatory requirement.Issuing guidelines and recommendations to improve market practice. The KNF also plays a role in consumer protection by providing information and resolving disputes between consumers and financial institution.
🧾 Consumer Protection
*Insurance Guarantee Fund (UFG)
The UFG safeguards policyholders y:
Covering claims arising from compulsory third-party liability (TPL) insurance for motor vehicles and farmers when the liable party is unidentified or uninsurd. Providing compensation in cases where an insurance company becomes insolvent, up to specified limis. Maintaining a register of compulsory insurance contracts and related evens.
The UFG operates under the supervision of the Minister responsible for financial institutios.
🧭 Recent Developments
Recommendation U – Bancassurance Practicen June 2023, the KNF introduced an updated Recommendation U, providing guidance on bancassurance practie. The recommendation emphasies:
Ensuring competitive and transparent insurance products offered by baks.
Protecting consumer interests, particularly regarding credit protection insurance (CI). Establishing clear agreements between banks and insurance companies, detailing roles, responsibilities, and information exchage.
Implementation of the recommendation is expected by 1 July 2024 for banks, with an extended deadline of 1 January 2025 for credit unions.
🧭 Legal Assistace
For legal advice or representation in insurance matters in Poland, consulting with a law firm specializing in insurance law is advisbe.Firms such as CMS offer expertise in regulatory compliance, dispute resolution, and insurance transactons.
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