Insurance & Reinsurance 2025 Comparisons

In Poland, there are four main law acts regulating insurance and reinsurance law:

• the Polish Civil Code – contains provisions on contracts in general and specific to insurance contracts;
• the Act on Compulsory Insurance – contains provisions on compulsory insurance, including but not limited to motor third-party liability (MTPL) insurance;
• the Act of 11 September 2015 on Insurance and Reinsurance Activity (the “Act on Insurance and Reinsurance Activity”) – contains provisions on rules for the performance of activities by insurance companies and reinsurance companies (see 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance and 2.2 Writing of Insurance and Reinsurance); and
• the Act on Insurance Distribution – contains provisions on rules for the distribution of insurance performed both by intermediaries and directly by insurance companies.

Selected laws that are also applicable to insurance sector are as follows:

• the Act on Consumer Rights – contains regulatory rules for the distance selling of insurance services;
• the Act on Competition and Consumer Protection – contains regulatory rules for consumer protection by entrepreneurs, including insurance companies and insurance distributors;
• the Act on Handling Complaints by Financial Market Entities and the Financial Ombudsman – regulatory obligations of (among others) insurance companies and insurance intermediaries regarding complaints filed by their clients; and
• the Act on AML – contains regulation on AML with regard to life insurance contracts.

It is also worth mentioning the recommendations, guidelines and positions of the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, or KNF), which insurance market entities must comply with (some of them on a “comply or explain” basis). The Polish legal system is not based on common law or precedent; however, case law – in particular, Supreme Court judgments – and legal doctrine are taken into consideration in solving court and out-of-court disputes.

In Poland, insurance and reinsurance activities may only be performed by:

• entities that have obtained a permit from the Polish Financial Supervision Authority; or
• EU-based companies that are:
1. duly authorised in their member state of origin;
2. duly notified in Poland; and
3. performing insurance or reinsurance activity through a branch or on the “freedom to provide services” basis.

As mentioned in 1.1 Sources of Insurance and Reinsurance Law, the rules for performing such activities are specified in the Act on Insurance and Reinsurance Activity. Domestic insurance companies and reinsurance companies are fully supervised by the Polish Financial Supervision Authority, who also supervise EU-based companies to some extent (specified in detail in the Act on Insurance and Reinsurance Activity).

Insurance companies are also subject to legislative guidance in respect of many other regulatory bodies, including but not limited to:

• the Financial Ombudsman – with regard to complaints filed by clients;
• the Data Protection Authority – with regard to data protection;
• the Insurance Guarantee Fund and the Polish Motor Insurers’ Bureau – with regard to compulsory insurance, including but not limited to MTPL insurance; and
• the General Inspector of Financial Information – with regard to AML (life insurance only).

In Poland, the right to conduct insurance and reinsurance activities is regulated primarily by the Act on Insurance and Reinsurance Activity. These activities may only be carried out by entities licensed by the Polish Financial Supervision Authority. Licensing requirements ensure compliance with standards related to ownership structure, solvency, and the nature of business.

Entitlement to Write Insurance Business

Only those entities established as a joint stock company (spółka akcyjna, or SA) or a mutual insurance company are entitled to conduct insurance business. Foreign insurers from EU/European Economic Area (EEA) countries can operate based on the freedom to provide services or the right of establishment (passporting rights), whereas non-EU insurers must establish a branch in Poland and obtain a licence from the Polish Financial Supervision Authority.

The Act on Insurance and Reinsurance Activity does not explicitly differentiate licensing or operational requirements based on the type of client (ie, whether consumer, SME, or corporate). However, insurers offering consumer products must comply with additional consumer protection regulations, including disclosure requirements under the Polish Civil Code and specific rules on unfair market practices.

Entitlement to Write Reinsurance Business

Reinsurance can be conducted by entities specifically licensed for reinsurance or by insurers licensed for direct insurance that are also allowed to conduct reinsurance activities. Separate solvency and capital adequacy requirements apply to reinsurers under EU Directive 2009/138/EC (“Solvency II”), transposed into Polish law by the Act on Insurance and Reinsurance Activity.

Ownership and Solvency Standards

Applicants for a licence must meet stringent requirements regarding the transparency of ownership structures to ensure compliance with AML/CFT standards.

Insurers and reinsurers must maintain minimum capital levels and meet solvency capital requirements (SCR). These requirements are aligned with Solvency II and are supervised by the Polish Financial Supervision Authority.

Special Considerations for Excess Layers and Reinsurance Contracts

There are no specific regulations addressing excess layers underwriting, but insurers and reinsurers must adhere to general risk management and solvency rules. Insurers are expected to assess the aggregate risks associated with underwriting high-value policies.

Reinsurance agreements are subject to general contract-law principles under the Polish Civil Code and to specific provisions of the Act on Insurance and Reinsurance Activity. There are no additional licensing requirements for reinsurance contracts – although reinsurers must demonstrate adequate capacity and solvency to the Polish Financial Supervision Authority.

In Poland, under tax legislation currently in force, no insurance premium tax is applied.

In Poland, the operations of overseas-based insurers and reinsurers are subject to specific regulatory frameworks, which vary depending on whether the entity is from an EU/EEA member state or a third country.

EU/EEA Insurers and Reinsurers

Entities from EU or EEA countries can operate in Poland under the principles of:

• freedom of establishment – allows insurers to establish branches in Poland; or
• freedom to provide services – permits insurers to offer services across borders without a physical presence.

To operate under these freedoms, insurers must notify their home-country supervisory authority, which then informs the Polish Financial Supervision Authority. Once the Polish Financial Supervision Authority receives this notification, the insurer can commence operations in Poland. These entities are primarily regulated by their home-country authorities but must adhere to Polish regulations concerning consumer protection and market conduct.

Non-EU/Non-EEA Insurers and Reinsurers

Insurers and reinsurers from non-EU/non-EEA countries face stricter requirements, as follows.

• Establishing a main branch – they must set up a main branch in Poland and obtain a permit from the Polish Financial Supervision Authority.
• Forming a subsidiary – alternatively, they can establish a subsidiary insurance company incorporated in Poland.

The process involves submitting detailed applications, including business plans, financial projections, and governance structures, to the Polish Financial Supervision Authority for approval.

Unlicensed Activities

Conducting insurance or reinsurance activities in Poland without the appropriate licence or notification is prohibited. Engaging in unlicensed activities can lead to legal penalties, including fines and injunctions against conducting further business.

Impact of Brexit

Following the UK’s exit from the EU (“Brexit”), UK-based insurers and reinsurers lost their automatic passporting rights to operate across the EU, including Poland. To continue their operations, these entities must:

• establish an EU-based subsidiary – many UK insurers have set up subsidiaries within the EU to retain market access; and
• obtain the necessary authorisations – UK insurers must secure the appropriate licences from the Polish Financial Supervision Authority to operate in Poland.

The Polish government has enacted legislation to manage the run-off of existing insurance contracts issued by UK insurers before Brexit, allowing them to fulfil existing obligations without engaging in new business.

Fronting is not explictly regulated in Polish insurance law – although it is present in practice in the Polish market and is allowed, provided it is in compliance with applicable law provisions on performing insurance activity. The insurance contract must therefore be concluded by an insurance company duly authorised (by a regulatory body’s permit or notification) to perform such activities in Poland and the risk may be ceded to another insurance company.

In Poland, the insurance sector has experienced notable M&A activity, reflecting broader trends in the financial industry. This activity encompasses various types of investors and is influenced by specific market and regulatory factors.

Level and Type of M&A Activity

The Polish insurance market has seen significant M&A transactions, particularly involving major industry players. A prominent example is the planned sale by PZU, Poland’s leading insurer, of its 32% stake in Alior Bank to Pekao – in which it holds a 20% stake. This strategic move aims to streamline PZU’s banking activities and address valuation complexities arising from holdings in competing banks. The transaction is expected to include a cash settlement and finalise in the first half of 2025.

Inward and Outward Investment Activity Levels

The Polish insurance sector has attracted substantial foreign investment, with international insurers such as Allianz, Vienna Insurance Group (VIG) and Generali expanding their presence through acquisitions. By way of example, in 2021, Allianz acquired the Polish branch of Aviva – marking one of the largest deals in the insurance sector that year.

Additionally, Apax-backed broker consolidator PIB has strengthened its position in the Polish market with multiple acquisitions.

Polish financial groups who are involved in M&A on more local level are MAK and MJM.

Market and Regulatory Factors Affecting M&A Activities

Several factors influence M&A activities in Poland’s insurance sector, as follows.

• Regulatory oversight – the Polish Financial Supervision Authority oversees M&A transactions to ensure market stability and consumer protection. Transactions involving significant market share or foreign investment may require approval from the Polish Financial Supervision Authority as well as the Office of Competition and Consumer Protection.

• Market consolidation – the trend towards consolidation aims to achieve economies of scale, enhance competitiveness, and streamline operations. This is evident in PZU’s strategy to reorganise its banking assets.
• Foreign investment policies – Poland maintains an open stance towards foreign investments, facilitating the entry of international insurers and investors into the market.

Future Outlook

The Polish insurance sector is expected to continue attracting  domestic and international investors, as a result of the following driving factors.

• Digital transformation – investments in insurtech and digital platforms are likely to shape future M&A activities as companies seek technological advancements to meet evolving consumer demands.
• Regulatory developments – ongoing changes in EU regulations (eg, the Digital Operations Resilience Act (DORA)) will impact capital requirements and risk management practices, influencing M&A strategies.

Insurance distribution is a regulated activity governed by the provisions of the Act on Insurance Distribution, which implements Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (the “Insurance Distribution Directive” (IDD)) in Poland. Insurance distribution encompasses the entire process related to the offering, sale, and after-sales service of insurance products. This process can be carried out in a variety of ways – from traditional sales channels, such as sales through insurance agents representing insurance companies and sales through insurance brokers who are advisers to the customer, to modern distance selling methods (including digital platforms and mobile applications, which do not require the simultaneous presence of the parties to the contract).

The concept of insurance distribution is defined in the provisions of the Act on Insurance Distribution. Insurance distribution means an activity performed exclusively by an insurance distributor, comprising:

• advising on and proposing – or performing other preparatory activities aimed at concluding – insurance contracts or insurance guarantee contracts;
• concluding insurance contracts or insurance guarantee contracts in the name of the insurance company, in the name or on behalf of the customer, or directly by the insurance company; and
• assistance by the intermediary in the administration and performance of insurance contracts or insurance guarantee contracts, including in matters of compensation or benefits.     

Insurance distribution also involves:

• providing information on one or more insurance contracts or insurance guarantee contracts based on criteria selected by the customer via websites or other media; and
• developing a ranking of insurance products that includes a comparison of prices and products or premiums for an insurance contract or insurance guarantee contract in the event that the customer is able to directly or indirectly conclude an insurance contract or insurance guarantee contract via websites or other media.

The distribution channel in this case will be online comparison tools or applications that – while offering the possibility of comparing insurers’ offers – also have the option of redirecting to the website of a given insurer, where the customer can finalise the process of concluding an insurance contract, as well as such tools or portals featured on the website from which the customer can directly purchase an insurance product.

The insurance distributor is an insurance company and insurance intermediaries (ie, an insurance agent, an agent offering supplementary insurance, or an insurance broker). Every insurance intermediary is an insurance distributor, but not every insurance distributor is an insurance intermediary. An insurance intermediary is an insurance agent or an insurance broker – or an agent offering supplementary insurance – who conducts the distribution of insurance for remuneration (ie, entities representing the insurance company or the client, respectively, and intermediating in the conclusion of an insurance contract by their principal while not being a party to that contract). It is therefore clear that an insurance distributor is a broader concept and also includes insurance companies that directly, through their own resources and staff, perform activities in the field of insurance distribution. This refers to the so-called direct models.

Insurance Agents

An insurance agent is an entrepreneur, other than an agent offering supplementary insurance, performing agency activities on the basis of an agency agreement concluded with an insurance company and entered in the register of agents. As part of the conducted agency activities, an insurance agent performs activities in the field of insurance distribution on behalf of or for the benefit of the insurance company.

An insurance agent, unlike an insurance broker, is not required to obtain a permit to conduct business but must meet statutory requirements and is subject to registration in the register of agents maintained by the Polish Financial Supervision Authority. An insurance agent can be either a natural person conducting business activity and, for example, a commercial law company. An entrepreneur obtains the status of an insurance agent after concluding an agency agreement with an insurance company and then entering it in the register of insurance agents.

In the case of an insurance agent who is a legal person, agency activities may only be performed by a natural person who meets all the conditions specified in the provisions of the Act on Distribution – ie, both positive conditions (eg, minimum level of education, full legal capacity, passed exam, warranty) and negative conditions (eg, no criminal record for specific crimes). These conditions must be met by at least half of the board of the agent who is a legal person. Additionally, agency activities may be performed by a natural person after being entered into the register of agents.

An insurance agent may act on behalf of more than one insurance company within the same insurance section (ie, Section I – Life Insurance or Section II - Other Personal and Property Insurance). Such an agent – called a multi-agent – is independently liable for damages caused to the client or the person entitled under the insurance contract that result from the performance of agency activities. Therefore, a multi-agent is subject to mandatory civil liability insurance.

Agency activities may be conducted by any entity that meets the statutory requirements. There are no legal obstacles preventing, for example, a bank or an entity conducting business in the field of sale, leasing or rental of vehicles from simultaneously conducting agency activities, and vice versa – there are no legal obstacles that prevent an entity with the status of an insurance agent from conducting other activities apart from insurance intermediation (subject to the prohibition on conducting brokerage activities).

An agent offering ancillary insurance is an agent who meets the conditions specified in the provisions of the Act on Insurance Distribution and conducts insurance distribution activities as a sideline activity, provided all of the following conditions are met:

• the entrepreneur’s core business is not insurance distribution activities;
• the entrepreneur distributes only insurance that supplements the goods supplied or services provided; and
• the distribution of insurance does not relate to a life insurance contract or a civil liability insurance contract, unless such contract is a supplement to the goods supplied or services provided as part of the entrepreneur’s core business.

In practice, an insurance agent offering ancillary insurance may be, for example, a leasing company or a car dealer and also in the scope of the offered liability insurance or life insurance, if they complement the goods or services provided.

Insurance Brokers

An insurance broker is a natural person or a legal person who has a permit issued by a supervisory authority to perform brokerage activities in the field of insurance and who is entered in the register of brokers. As part of the brokerage activity, an insurance broker performs activities in the field of insurance distribution on behalf of or for the benefit of the client (hereinafter referred to as “insurance brokerage activities”), based on a power of attorney granted by the client (the insured or the insured) and – depending on the arrangements of the parties – on the basis of an agreement for the provision of brokerage services. The broker is therefore the client’s insurance adviser

In the case of an insurance broker who is a legal person, insurance brokerage activities may only be performed by a natural person who meets all the conditions enumerated in the relevant provisions of the Act on Insurance Distribution – ie, both positive conditions (eg, minimum level of education, full legal capacity, passed exam, warranty) and negative conditions (eg, no criminal record for specific crimes). In the case of a broker who is a legal person, the members of the management board must also meet the conditions to the extent specified in the provisions of the Act on Insurance Distribution. In addition, insurance brokerage activities may be performed by a natural person after being entered into the register of brokers.

Acquiring the status of an insurance broker requires obtaining a permit issued by the Polish Financial Supervision Authority, preceded by a passed brokerage exam and entry into the register of brokers. The requirements are therefore greater than in the case of an insurance agent, but also the scope of activity and duties – and therefore the broker’s responsibility – is broader.

Under the provisions of the Polish Civil Code on insurance contracts, the policyholder is obliged to disclose to the insurer all the circumstances known to them about which the insurer has enquired in the offer form or in other letters before contract execution. If the policyholder executes the contract through a representative, this obligation also rests on the representative and covers the circumstances known to the representative. If the insurer executes the insurance contract despite receiving no reply to particular enquiries, the omitted circumstances are deemed insignificant. These rules apply both to consumer insurance contracts and commercial insurance contracts.

If the insurance contract is executed on another person’s account, the disclosure obligations rest on the policyholder and the insured unless the insured did not know about the contract having been executed on their account. The insurer is legally obliged and expected to ask for information and data that are necessary to assess insurance risk, calculate the premium and offer terms of insurance, etc, and must not expect the policyholder or insured to decide on what information is necessary and adequate. A proactive approach by the insurance company as a professional party to the insurance contract is a must.

The insurer is not liable for the effects of circumstances about which, in violation of the obligations outlined in 6.1 Obligations of the Insured and Insurer, they were not informed. If the above-mentioned obligations of the policyholder and the insured are breached owing to wilful misconduct, in case of doubt it is assumed that an event provided for in the contract and its consequences result from the misconduct of the policyholder or the insured.

Both parties to the insurance contract (ie, the insurance company and the policyholder) may be represented by an intermediary during the negotiation and conclusion of the insurance contract. The insurance company may be represented only by an insurance agent, whereas the policyholder may only be represented by an insurance broker. Both intermediaries must have in mind the best interest of their client and act within the scope of the power of attorney granted by their client and in line with the instructions given by their principal (accordingly, either the insurance company or the policyholder).

According to the Polish Civil Code, an insurance contract is a contractual relationship under which the insurer undertakes – within the scope of its business activity – to provide a specific benefit in the event of an accident provided for in the contract and the insured undertakes to pay a premium. The Polish Civil Code does not stipulate any mandatory form for the insurance contract, but only requires that the insurer confirm the conclusion of the contract with an insurance document.

Therefore, the insurance contract may be concluded in any form permitted by Polish civil law. It may also be concluded remotely – by phone or via the Internet – and then the insurer, and possibly the intermediary, must apply special provisions regulating such sales. The Polish Civil Code also provides for special regulations with regard to the contract templates that are used in concluding insurance contracts (general insurance conditions) – in particular, with consumers. These regulations concern, among other things, the delivery of such templates.

The provisions of the general insurance conditions or the provisions of the insurance contract that are contrary to the provisions of the Polish Civil Code concerning the insurance contract are invalid, unless the regulations provide for exceptions. Also, the insurance contract is invalid if the occurrence of the accident provided for in the contract is not possible. Coverage by insurance for the period preceding the conclusion of the contract is ineffective if – at the time of conclusion of the contract – either party knew or, with due diligence, could have found out that the accident had occurred or that the possibility of its occurrence during that period had disappeared.

The policyholder may conclude an insurance contract on another person’s account. The insured person may not be named in the contract, unless it is necessary to define the subject of insurance. The aspect of insurance interest has not been directly regulated in the Polish insurance law, but it appears in legal doctrine and case law. The Supreme Court ruled that, in an insurance contract on another person’s account, “the policyholder insures someone else’s property interest, but acts in [their] own name, which means that someone else is the insured here, and someone else is the person in whose property interest the insurance is concluded”. The literature on the subject states: “Insurance interest is an attribute of the insured – ie, the person who is exposed to the insurance risk. It is their assets that are protected by insurance and the contract is concluded for their benefit, regardless of who the insured person is and what are the reasons for concluding the contract.”

For the assessment of the validity of a given insurance contract, the purpose and reason for concluding this contract by the policyholder (ie, a party to the contract) will be irrelevant. What will be significant from the point of view of the contract is only whether or not the entities that will be covered by the insurance (eg, customers or employees under such a contract) will have an insurance interest – ie, whether or not there will be an element of risk on the part of these entities.

The policyholder may conclude an insurance contract on another person’s account. The insured person may not be named in the contract, unless it is necessary to define the subject of insurance. The insurance contract, or general terms and conditions of insurance, must specify the rights and obligations of insured persons and the rules of their identification when reporting a claim under insurance.

Insured persons must also be provided with terms and conditions of insurance – in particular, in group insurance, which is specified in detail in the Act on Insurance and Reinsurance Activity. Partially, it is the policyholder who is liable for disclosure obligations and in some cases the same rules as the ones for distributor apply accordingly. In the case of an insurance contract concluded on another person’s account (particularly in group insurance), if the insured person’s consent to the provision of insurance cover is required or the insured person agrees to finance the cost of the insurance premium, the insurance company may not invoke provisions limiting the insurance company’s liability, providing for the effects of breaches of the insured person’s duties or burdening them with obligations in the event of failure to deliver the terms and conditions of the insurance contract to the insured person before such consent is given.

The insured is entitled to demand the benefit due directly from the insurer, unless the parties have agreed otherwise; however, such an agreement cannot be made if the accident has already occurred. The insured may request that the insurer provide him with information on the provisions of the concluded contract and the general terms and conditions of insurance to the extent that they concern the rights and obligations of the insured. The insurer may only claim payment of the premium against the insured. The insurer may also raise a claim affecting the insurer’s liability against the insured.

The position of consumer insurance contracts in Poland differs from that of reinsurance contracts – primarily owing to who is involved as a party to the contract and the nature of the legal framework governing it. Consumer insurance contracts are entered into between an insurance company and an individual (a consumer who is not acting in the context of professional or business activity). As a result, they benefit from a relatively broad range of consumer protection regulations, including:

• the right to clear, understandable information;
• restrictions on the use of unfair contract terms; and
• access to mediation or arbitration proceedings offered by institutions such as the Financial Ombudsman.

Reinsurance contracts are a different story. A reinsurance agreement is concluded between two professionals in the insurance sector – the insurer and the reinsurer. This is not a consumer relationship, so the special protections afforded to consumers do not apply. Reinsurance more closely resembles a B2B transaction, where contractual freedom, the sophistication of the parties involved, and their specialised knowledge rule the day. Law-makers assume that both sides know what they are doing, have access to professional advisers, and thus do not require the extensive consumer-style protection.

In Poland, ART arrangements such as industry loss warranties (ILWs) and insurance-linked securities (ILS) are not yet a widespread, mainstream component of the domestic insurance and reinsurance landscape. However, certain sophisticated market players – often international insurers or reinsurance groups with operations in Poland – may consider or engage in such transactions. The Polish regulatory environment, overseen by the Polish Financial Supervision Authority, generally adheres to EU frameworks and Solvency II principles. This means that any transaction aiming to shift risk would be scrutinised to determine whether or not it meets the legal criteria of insurance or reinsurance.

Whether ART transactions are recognised as insurance or reinsurance under Polish law largely depends on their specific structure and the risk transfer mechanics involved. If the Polish Financial Supervision Authority finds that the arrangement involves genuine risk transfer – ie, the contractual obligation to indemnify against a specified fortuitous event – it may fall under the scope of insurance or reinsurance activity. In practice, ART solutions that closely resemble traditional (re)insurance contracts and comply with capital and solvency requirements set forth by Solvency II are more likely to be recognised as such. On the other hand, purely financial instruments or capital market solutions without a clear transfer of insurance risk might be treated as capital market products rather than insurance.

In Poland, the treatment of ART transactions written in other jurisdictions depends largely on how closely those transactions align with the legal definition of (re)insurance under Polish law and the EU’s Solvency II framework. Merely having an ART contract recognised as a reinsurance arrangement elsewhere does not guarantee that it will automatically be regarded as reinsurance for solvency or regulatory purposes in Poland.

If a foreign ART transaction does not satisfy the Polish (or EU-level) criteria of genuine risk transfer characteristic of (re)insurance, the Polish Financial Supervision Authority may view it as a financial instrument rather than an insurance or reinsurance contract. In such a case, the entity involved would not enjoy the capital treatment and solvency relief that reinsurance contracts typically provide under Solvency II. Instead, the arrangement could be treated more like a credit derivative, a contingent capital deal, or a structured financial product.

These instruments would likely fall under the general financial regulatory framework rather than insurance-specific legislation, as follows.

• Capital treatment – the entity’s solvency calculation might not allow for the same reduction in capital requirements as genuine reinsurance. Instead, the transaction may be integrated into the firm’s risk profile as a financial asset or liability, subject to market, credit or operational risk charges.
• Disclosure and reporting – the firm may need to disclose such arrangements to the Polish Financial Supervision Authority as part of its broader financial reporting, without enjoying the more favourable look-through as would be the case if it were traditional reinsurance.
• Supervisory approach – the Polish Financial Supervision Authority would likely expect detailed documentation, stress testing, and risk assessment to ensure that the entity fully understands the financial implications of the ART arrangement. No special insurance-based regulatory protections apply if the transaction is not recognised as (re)insurance.

Insurance contracts fall within the general rules of contractual obligations specified in the Polish Civil Code, including their construction. However, there are also specific provisions on interpretation of insurance contracts both in the provisions regulating insurance contracts and in the provisions regulating performing insurance activity. The insurance contract, general insurance conditions and other contract templates must be formulated (by the insurance company) in an unambiguous and understandable manner.

The provisions of the insurance contract, general terms and conditions of insurance and any other contract templates formulated ambiguously are interpreted in favour of the policyholder, the insured, or the beneficiary of the insurance contract. In the insurance sector, regulations on standard contracts also apply. In accordance with Polish Civil Code, a standard contract established by one of the parties (eg, an insurance company) – in particular, the general terms and conditions and standard contract rules and regulations – binds the other party if delivered prior to the conclusion of the contract. If one of the parties uses a standard contract in electronic form, it should make it available to the other party before the conclusion of the contract in such a way that they can store and reproduce the standard in the ordinary course of business.

Failure to deliver the terms and conditions of the insurance contract before its conclusion results in the consumer not being bound by the standard contract. In the case of an insurance contract concluded on another persons’ account (particularly in group insurance), if the insured person’s consent to the provision of insurance cover is required or the insured person agrees to finance the cost of the insurance premium, the insurance company may not invoke provisions limiting or excluding the insurance company’s liability, providing for the effects of breaches of the insured person’s duties or burdening them with obligations in the event of failure to deliver the terms and conditions of the insurance contract to the insured person before such consent is given.

In the event of a conflict between the content of the contract and the standard contract, the parties are bound by the contract. The standard contract should be formulated unambiguously and in an understandable manner. Ambiguous provisions are explained for the benefit of the consumer. The principle expressed in the preceding sentence does not apply in proceedings concerning the recognition of the provisions of the standard contract as prohibited.

In Poland, the concept of “warranties” in insurance contracts does not strictly follow the same approach as under English common law. Polish insurance contracts are generally subject to the provisions of the Polish Civil Code, as well as specific insurance legislation. While certain contractual terms may resemble what other jurisdictions call “warranties”, Polish law does not typically use the term “warranty” as a distinct legal category. Instead, insurers and policyholders rely on precise, clearly stated contractual terms and conditions that specify obligations and the consequences of non-compliance.

It is worth noting that Polish law does recognise a separate form of contract known as a gwarancja ubezpieczeniowa (insurance guarantee). This arrangement is distinct from standard insurance contracts and involves the insurer guaranteeing the performance of an obligation undertaken by the insured, often in favour of a third party. Although not a “warranty” in the common-law sense, this form of contract is explicitly regulated as a separate legal category and comes with its own legal implications and obligations.

In Polish insurance law, conditions precedent – ie, specific conditions that must be fulfilled before an insurer’s liability arises – are not explicitly defined as such within the legal framework. However, certain provisions function similarly, particularly regarding the payment of premiums.

A key example is the requirement for premium payment. Polish law stipulates that an insurer’s liability does not commence until the premium or its first instalment is paid. This implies that if a loss occurs before the premium payment, the insurer is not liable. This operates as a de facto condition precedent, even if not expressly labelled as such in the policy.

Disputes over coverage are most commonly resolved in court proceedings or settlements.

In an insurance contract concluded on another person’s account, the insured is entitled to demand the benefit due directly from the insurer, unless the parties have agreed otherwise. However, such an agreement cannot be made if the accident has already occurred.

The person entitled to compensation in connection with an event covered by a civil liability insurance contract may pursue their claim directly from the insurer.

Claims from an insurance contract are subject to a limitation period of three years. In the case of civil liability insurance, the injured party’s claim to the insurer for compensation or damages is subject to a limitation period following the expiry of the period provided for such claim in the provisions on liability for damage caused by tort or resulting from failure to perform or improper performance of an obligation. The limitation period for a claim for benefits against the insurer is also interrupted by reporting such claim to the insurer or by reporting an event covered by insurance. The limitation period starts again from the date on which the person reporting the claim or event received a written statement from the insurer on the granting or refusal of benefits.

In Poland, disputes concerning jurisdiction and choice of law in civil and commercial matters are primarily governed by EU regulations, national legislation, and applicable international conventions. However, specific rules apply in the case of consumers, limiting the ability to choose jurisdiction and applicable law to protect their rights.

Jurisdiction

Polish law provides consumers and policyholders additional protections regarding jurisdiction, as follows.

• The Brussels I Regulation (Recast) (EU) No 1215/2012 – particularly Article 18 – stipulates that consumers may bring proceedings in their domicile or the defendant’s domicile, whereas businesses can only sue consumers in the courts of the consumer’s domicile.
• The Act on Insurance and Reinsurance Activity provides detailed rules for insurance disputes. Under Article 10:
1. a lawsuit regarding claims arising from an insurance contract may be brought either in accordance with general jurisdiction rules or in the court competent for the place of residence or registered office of the policyholder, insured, or beneficiary under the insurance contract;
2. in the case of heirs of the insured or beneficiary, lawsuits can also be filed in the court competent for the place of residence of the heir; and
3. an assignment of claims does not affect the jurisdiction of the court.

This ensures flexibility for policyholders, insured persons, and beneficiaries in choosing a court that is convenient and protects their interests.

Choice of Law

The determination of applicable law in insurance contracts involving consumers is governed as follows.

• Rome I Regulation (EC) No 593/2008 (specifically, Article 6) limits the ability to choose foreign law in consumer contracts. A choice of law cannot deprive consumers of mandatory protections provided by the law of their habitual residence if the contract has a close connection to that jurisdiction. For insurance contracts, additional restrictions exist – particularly for mandatory insurances (eg, MTPL), where Polish law often applies if the risk is situated in Poland.
• Article 29 of the Act of 4 February 2011 on Private International Law reiterates that consumers cannot be deprived of mandatory protections under Polish law through a choice-of-law clause if the contract has a close connection with Poland.

International Conventions

Poland adheres to several international conventions respecting consumer and insurance-specific protections, such as the Hague Convention on the Law Applicable to Traffic Accidents. These conventions ensure consistent jurisdiction and choice-of-law standards in international disputes.

Reclamation Process

According to the Act on the Financial Ombudsman, policyholders, insured individuals, and beneficiaries must first file a reclamation (formal complaint) with the insurer. The insurer has 30 days to respond, extendable to 60 days in complex cases. Failure to respond is deemed acceptance of the claim.

If unsatisfied, the complainant may escalate the matter to the Financial Ombudsman, who provides non-binding opinions and mediates disputes.

Pre-Litigation

If mediation fails, the dispute can proceed to court. Consumers and beneficiaries are encouraged to use this process to ensure evidence is preserved and claims are well-documented.

Court Proceedings

Disputes are filed in civil courts, following general jurisdiction rules or as per Article 10 of the Act on Insurance and Reinsurance Activity, allowing suits in the claimant’s domicile court.

The process involves:

• filing a statement of claim with evidence;
• exchange of pleadings between parties;
• court hearings where both parties present their case;
• expert opinions may be sought, especially in complex insurance matters; and
• issuance of a judgment, which can be appealed in appellate courts.

Appeals

The first-instance judgment can be appealed to the appellate court. Further appeal to the Supreme Court is possible in cases of significant legal importance.

ADR

Mediation or arbitration can be chosen as alternatives to court litigation, especially for commercial disputes or as part of policy agreements.

In Poland, the enforcement of judgments is governed by the Code of Civil Procedure (Kodeks Postępowania Cywilnego). The enforcement of foreign judgments is governed by relevant EU regulations and international conventions.

Domestic Judgments

Domestic judgments can be enforced after obtaining an enforcement clause (klauzula wykonalności) from the court.

The creditor submits a motion to the court, which reviews the judgment to ensure it is final and enforceable. Once the enforcement clause is granted, the creditor can proceed with enforcement through a court enforcement officer (komornik sądowy).

Foreign Judgments

The process for enforcing foreign judgments depends on whether the judgment originates from an EU or non-EU jurisdiction.

EU Judgments

Poland follows the Brussels I Regulation (Recast) (EU No 1215/2012), which simplifies the recognition and enforcement of judgments from EU member states. Judgments from EU courts are automatically recognised in Poland without the need for special proceedings.

The creditor must apply for a declaration of enforceability (exequatur) from a Polish court – although this step is largely procedural under the regulation. The creditor presents the judgment and a certificate issued under Article 53 of the Brussels I Regulation (Recast) (EU No 1215/2012) by the court of origin. After the declaration, the judgment is treated as a Polish judgment and enforced through a court enforcement officer.

Non-EU Judgments

For judgments from non-EU jurisdictions, the process is governed by the Code of Civil Procedure (Articles 1145–1149) and applicable international treaties. Non-EU judgments must undergo a recognition procedure in Polish courts unless an international agreement provides otherwise.

Recognition is granted if the judgment:

• is final and enforceable in the country of origin;
• does not violate Polish public policy; and
• was issued by a competent court and the defendant was duly notified of the proceedings.

Following recognition, the creditor applies for an enforcement clause from a Polish court, enabling execution through a court enforcement officer.

Arbitration clauses in commercial insurance and reinsurance contracts can be enforced in Poland, subject to compliance with Polish law and international treaties. The enforceability of such clauses is governed by the Polish Code of Civil Procedure and relevant international conventions.

Arbitration clauses must be in writing to be valid under Article 1161, Section 1 of the Polish Code of Civil Procedure. The clause may be included in the main contract or as a separate agreement, provided it clearly specifies that disputes will be resolved by arbitration rather than courts.

Arbitration is permissible for disputes involving property rights (eg, claims for payment under an insurance contract). Non-property disputes can also be arbitrated if the law allows for settlement.

Polish courts respect valid arbitration clauses and will decline jurisdiction if a party invokes the arbitration clause before submitting a substantive defence.

Arbitration awards, whether domestic or foreign, are enforceable in Poland under the Polish Code of Civil Procedure and relevant international treaties, including the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the “New York Convention”).

Domestic arbitration awards are enforceable after a Polish court grants an enforcement clause. The party seeking enforcement must file a motion with the competent court, accompanied by the arbitration award and the arbitration agreement.

Polish courts can refuse enforcement of domestic awards if:

• the award violates Polish public policy;
• the arbitration agreement was invalid or improperly executed; and
• procedural irregularities occurred during the arbitration.

Poland is a signatory to the New York Convention, which provides a standardised framework for the recognition and enforcement of foreign arbitration awards.

ADR methods – notably, in consumer insurance (eg, before the Financial Ombudsman) – are provided for in the Polish insurance law but still rarely used in market practice. The most common way of resolving disputes between the policyholder/insured and the insurance company is court proceedings; however, settlements are often reached.

Penalties for late payments apply to compulsory insurance. In the event that a domestic insurance company fails to pay compensation under a compulsory insurance contract within the period specified in the Act on Insurance and Reinsurance Activity (as a rule, 30 days; in special cases, up to 90 days) or fails to comply with the obligation to issue a decision refusing payment, the Polish Financial Supervision Authority applies supervisory measures against the domestic insurance company in the form of imposing a penalty on the company or a member of the management board. Analogous rules apply to foreign insurance companies performing insurance activity in Poland within compulsory insurance.

Insurance recourse in Polish law refers to the insurer’s right to seek reimbursement of compensation paid to the insured from the person responsible for the damage. The legal basis for this mechanism is found in the Polish Civil Code and the Act on Compulsory Insurance.

Typical Recourse

According to Article 828, Section 1 of the Polish Civil Code, after paying compensation, the insurer assumes the rights of the insured against the person responsible for the damage – up to the amount of the compensation paid. This allows the insurer to claim reimbursement from the party at fault.

Atypical Recourse

In the context of MTPL, Article 43 of the Act on Compulsory Insurance, the Insurance Guarantee Fund and the Polish Motor Insurers’ Bureau specifies situations where the insurer has the right to seek reimbursement of compensation paid from the driver. These situations include where:

• the driver caused the damage intentionally or while under the influence of alcohol, drugs, psychotropic substances, or substitutes;
• the driver acquired the vehicle as a result of a crime;
• the driver did not possess the required license to operate the vehicle, except in cases of saving life or property or chasing a criminal; and
• the driver fled the scene of the accident.

In such cases, after compensating the injured party, the insurer may recover the amount paid from the responsible party.

Poland’s insurtech sector is experiencing significant growth, with numerous innovative companies emerging to transform the insurance landscape. These firms are leveraging technology to enhance customer experiences, streamline processes, and introduce new insurance products.

Notable Polish insurtech companies include the following.

• Quantee – specialising in AI-driven data science platforms, Quantee offers automated machine learning algorithms and visualisations. Their platform features dashboards, automated data pre-processing, predictive analytics, and workflow automation, aiding insurers in refining risk assessments and pricing strategies.
• Rankomat – operating as an online insurance comparison platform, Rankomat enables users to compare car insurance prices from multiple providers and purchase policies online. Additionally, it offers comparisons for credits, loans, accounts and deposits, empowering consumers to make informed financial decisions.
• Unilink – as a leading insurance distribution platform, Unilink collaborates with various insurers to provide a broad spectrum of insurance products. Their extensive network facilitates access to diverse insurance solutions for individual and corporate clients alike.
• Comperia.pl – this aggregator platform allows users to compare loans, savings accounts, insurance products, and telecommunications offers. By filtering and comparing products based on factors such as instalment amounts and interest rates, Comperia.pl assists users in selecting optimal financial products.
• Punkta – formerly known as mfind, Punkta is an insurance comparison platform that helps users find suitable insurance policies by comparing offers from various providers, enhancing transparency and choice in the insurance market.
• Tensorflight – specialising in analysing satellite images of properties using AI, Tensorflight provides visual analyses that generate information about building features such as height, number of floors, and construction type. This enables insurers to remotely assess property values and calculate premiums efficiently.
• Telemedi – offering remote medical services, Telemedi has secured significant funding, highlighting its role in integrating telemedicine with insurance services to provide comprehensive health coverage solutions.
• Braight – this start-up analyses online user behaviour to assess creditworthiness, supporting financial inclusion by providing insurers and financial institutions with alternative data for risk assessment.

Polish insurtech companies engage in various collaborations with traditional insurers, including:

• strategic partnerships – collaborations to develop and offer innovative insurance products, such as usage-based insurance and on-demand coverage;
• technological integration – implementing AI and machine learning solutions to automate claims processing, underwriting, and customer service, improving efficiency and customer satisfaction; and
• data analytics – utilising big data to personalise insurance offerings and enhance risk assessment models, leading to more accurate pricing and tailored products.

The Polish Financial Supervision Authority actively engages with insurtech developments to foster innovation while ensuring market stability and consumer protection. Its approach encompasses several key initiatives.

Innovation Hub Programme

Launched in January 2018, the Polish Financial Supervisory Authority’s Innovation Hub provides a platform for fintech and insurtech companies to receive guidance on regulatory and legal aspects of their operations. This initiative supports the development of financial innovations by facilitating dialogue between regulators and market participants.

Regulatory Sandbox

The Polish Financial Supervisory Authority is working towards implementing a regulatory sandbox that allows companies to test innovative financial products and services in a controlled environment. This framework aims to balance the need for innovation with regulatory compliance, enabling firms to refine their offerings before a full-scale market launch.

Guidelines on Outsourcing

Recognising the growing trend of outsourcing in the insurance sector, the Polish Financial Supervisory Authority has issued guidelines to ensure that such practices do not compromise service quality or consumer protection. These guidelines address risk management and compliance issues related to outsourcing arrangements. The Polish Financial Supervisory Authority, however, withdrew this communication in mid-January 2025 due to the entry into force of DORA.

Focus on Digital Operational Resilience

The Polish Financial Supervisory Authority emphasises the importance of digital operational resilience, particularly in light of DORA. The authority is working on guidelines to help financial institutions, including insurtech firms, strengthen their resilience against cyberthreats and ensure operational continuity.

The Polish financial market faces a range of emerging risks, such as cybersecurity threats and the development of AI and automation, as well as increasing life expectancy. The Polish Financial Supervision Authority has undertaken various measures to address these challenges and ensure market stability.

Cybersecurity Threats

In the age of digitalisation, the financial sector is particularly vulnerable to cyber-attacks such as phishing, ransomware and DDoS attacks. To counter these risks, the Polish Financial Supervision Authority established the Computer Security Incident Response Team (CSIRT KNF), which co-ordinates and supports the management of security incidents in financial institutions. The CSIRT KNF also conducts educational initiatives, publishing reports on current cybersecurity threats and organising training sessions and webinars for market participants.

AI and Automation

With the growing use of AI and automation in financial services, new regulatory and supervisory challenges are emerging. In response, the Polish Financial Supervision Authority launched the Innovation Hub Programme, which supports the development of financial innovations (fintech) by fostering dialogue with tech companies, providing clarification on legal requirements, and assisting in identifying applicable regulations.

Increasing Life Expectancy

An ageing population impacts the insurance and pension sectors by increasing the demand for products tailored to senior citizens and raising challenges regarding the solvency of pension systems. The Polish Financial Supervision Authority monitors these demographic changes and adjusts regulations to ensure the financial stability of institutions offering pension and insurance products.

In response to emerging risks such as cyberthreats, the rise of AI, and an ageing population, Poland’s financial and insurance sectors are developing innovative products and solutions to address these challenges.

Cybersecurity Insurance

The increasing frequency and sophistication of cyber-attacks have prompted Polish insurers to offer specialised cyber-insurance policies. These policies cover various cyber-risks, including data breaches, ransomware attacks, and business interruptions caused by cyber-incidents. However, analyses indicate that current offerings may not fully meet the evolving needs of businesses, suggesting a need for more tailored and comprehensive solutions.

AI-Specific Insurance Products

As AI technologies become more prevalent, insurers are exploring products that address AI-related risks such as algorithmic errors, data biases, and IP infringements. By way of example, some insurers have developed policies that provide performance guarantees for AI products, ensuring they function as intended and mitigating potential liabilities.

Financial Products for an Ageing Population

Poland’s demographic shift towards an older population has led to the development of financial products tailored to seniors. These include investment opportunities in senior housing and care facilities, recognising the growing demand for such services. Investors view this as a long-term opportunity and anticipate stable returns due to the increasing need for senior-oriented infrastructure.

Government Initiatives

The Polish government has introduced programmes to enhance the financial security of seniors – for example, tax exemptions for pensions up to a certain threshold, effectively increasing disposable income for many retirees. Additionally, programmes such as “Senior+” and “Active+” aim to support senior citizens through various services and activities, thereby promoting their well-being and integration into society.

In recent years, Poland has introduced several significant legislative and regulatory changes in the insurance sector aimed at strengthening consumer protection, improving market standards, and aligning with EU requirements. However, during the past year, there have been no ground-breaking legislative developments, apart from the introduction of the new Recommendation U regarding bancassurance. Currently, the market is primarily focused on implementing DORA and the related Polish Financial Supervision Authority guidelines.

One significant regulatory development in the past year was the above-mentioned implementation of the new Recommendation U, issued by the Polish Financial Supervision Authority. This recommendation provides updated guidelines for the bancassurance sector, ensuring greater transparency and consumer protection in the collaboration between banks and insurers. It aims to clarify the roles and responsibilities of both parties in offering insurance products through banking channels.