Krystian Wiercioch, Zastępca Przewodniczącego Komisji Nadzoru Finansowego, wystąpił podczas otwarcia X Kongresu PIU

The Polish Financial Supervision Authority (KNF) has published a summary of the speech that was held by Mr. Krystian Wiercioch, Deputy Chairman of the KNF, at the opening of the 10th PIU Congress. While many issues addressed by the Deputy Chairman are similar to those addressed by the Chairman itself, Mr. Jacek Jastrzębski, the Deputy Chairman also outlines the regulatory focus of the KNF for the supervisory year 2023, which is likely to be of particular interest to insurance and reinsurance undertakings.
#### The key areas of focus are the following, so Mr. Wiercioch:
(1) to establish a „fair balance between the value of insurance products“ for both insurance companies and policyholders. In this context, the KNF seeks to eliminate „empty boxes“, that is insurance products that provide minimal coverage while charging high premiums. Such products are deemed harmful to the market and are not suitable for the market, as they not only fail to bridge the insurance gap of policyholders, but also create a false sense of security for policyholders, potentially leading to significant financial risks when claims arise.
(2) to issue recommendations on assessing the suitability of life insurance contracts with investment components. These recommendations, which have been developed in consultation with the insurance industry, aim to mitigate the risk of misselling and ensure that policyholders are provided with sufficient information to make adequate insurance contract and investment decisions.
(3) to closely monitor (re)insurers‘ practices as regards product governance. The KNF will therefore review compliance of undertakings with the existing recommendations to prevent any circumvention of the guidelines that may harm the interests of policyholders and beneficiaries.
(4) to contemplate the issuance of additional recommendations or a position document as regards the investment activities of supervised firms, as the practices of some undertakings are highly worrisome. The new document would aim to ensure that insurance companies maintain responsible and prudent investment practices to safeguard the interests of policyholders.
(5) to improve the KNF’s own IT infrastructure in an effort to enhance supervisory capabilities. This includes the development of new tools for data validation and automation of supervision in specific areas. These improvements will enable more accurate and efficient oversight of the insurance market.
(6) to implement various (upcoming) European regulations, including the revision of Solvency 2, the implementation of the Insurance Recovery and Resolution Directive (IRRD), the revisions of the Motor Insurance Directive (MID), and the implementation of the Digital Operational Resilience Act (DORA), all of which are expected to have a more or less significant impact on insurance and reinsurance undertakings. The key aim of the KNF is to align Polish rules and regulations with European standards and best practices.