According to the Polish Financial Supervision Authority the Polish insurance industry is well capitalised and resilient to serious shocks in the system and its environment. The insurance undertakings’ own funds to cover the capital requirements allow them to manage their liabilities and otherwise meet their obligations under insurance contracts on an ongoing basis. The situation of the Polish insurance industry is stable.
Nevertheless KNF is constantly monitoring the impact of the current epidemiological situation on the functioning of the insurance industry. In order to minimise the risk factors associated with the epidemic, the financial supervisor – whose primary goal is to ensure the safety and stability of the insurance industry and to protect market participants – has developed a package of measures to boost the resilience of the Polish insurance industry to the impact of the epidemic.
The proposed Package of measures aims to, in particular, protect the customers in that industry and to mitigate the impact of market volatility on the insurance industry.
The supervisory authority also declares that – to the extent possible – it will reduce or suspend its supervisory activities, especially those that create particular organisational and/or staffing burdens for supervised entities, and that it will adopt a pragmatic approach to sanctions for noncompliance with regulatory standards. In the supervisor’s opinion, the proposed extraordinary measures will enable the management boards of insurance undertakings to properly respond to the current and future risks, including risks to the continuity of insurance coverage granted to customers under insurance contracts.
More information on KNF’s website: https://www.knf.gov.pl/en/MARKET/Coronavirus_Information_for_authorised_entities
