Reinsurance companies will soon find it easier to do business in Poland in both the life and non-life insurance sectors. The Polish government adopted on 14 October a draft amendment to the current insurance law, submitted by the Finance Ministry. These changes were necessitated by EU regulations. Under the directive 2005/36/EC once a reinsurer is authorised in one Member State, it should be allowed to do business in all other Member States. The Commission has recently launched infringement proceedings against Poland for non-implementation, as previously reported (see post here).
Previously reinsurance in Poland did not exist as a distinct specialisation, although any insurance company authorised in Poland could offer reinsurance services. According to the draft amendment, reinsurance firms from outside Poland will now be able to function in Poland as joint stock companies, mutual reinsurance companies and European companies. The draft amendment also establishes new systems on financial management of reinsurance firms and investing assets used for creating technical and insurance reserves.
These reforms are likely to prompt an increase in the number of reinsurance companies moving into the Polish market, bringing with them much needed change and competition.