The Polish government intends to introduce changes to existing insurance regulations concerning foreign EU insurers operating in Poland.
The proposed changes would:
- introduce a provision based on which the deadlines for the payment of compensation from compulsory insurance (such as MTPL products) and sanctions for overrun of those deadlines that currently apply to Polish insurers (e.g. financial penalties) would equally apply to foreign insurers writing such business in Poland. As a rule, insurance companies have 30 days from the date of notification about damage to settle a claim covered by compulsory insurance. If this deadline is not enough to clarify all relevant circumstances of the case, compensation is paid within 14 days from the day on which it became possible (no later than within 90 days from the date of notification about damage, unless the liability of the insurance company or the amount of compensation depends on the pending criminal or civil proceedings).
- confer emergency powers to the Polish Financial Supervision Authority allowing for the immediate removal or prevention of infringements of the interests of policyholders, insured persons and persons entitled under insurance contracts. The proposed amendment has to do with the implementation of article 155 sec. 4 of the Solvency II Directive, which provides for the possibility of applying an emergency procedure, entitling the host country's supervisory authorities to take appropriate emergency measures to prevent or punish irregularities within their territories.
Implementation of the draft law by the Council of Ministers has been scheduled for the second quarter of 2019.
For more information, please get in touch with a relevant contact person at CMS Cameron McKenna Nabarro Olswang.