Stanowisko KNF dotyczące jednolitych zasad stosowania punktu 20. rekomendacji U

In June 2023, KNF has released good practices within Recommendation U (see eventid=21895).
This article is an explanation on KNF’s stand for point 20 from Recommendation U, which states that KNF expects the insurance products sold to the client to be adequate to their needs, while the service price will be dependent on the actual interest of the client and the value of the insurance protection.
KNF explains the definition of „damage ratio“ mentioned in Recommendation 20.2, that it should be the ratio of the value of the assumed claims costs to the gross insurance contribution.
The first calculation of this damage ratio should take place before the contract agreement begins (before the insurance period begins). Any parameter changes should lead to a recalculation of the damage ratio. Additionally, the lifespan for the calculation is assumed to be the lifespan of the insurance contract, without any assumptions of earlier termination. In any case, the originator of the product is required to comply with Delegated Regulation 2017/2358, in particular Article 7 on product monitoring and review.