On 24 October 2017, the new version of the draft act on insurance distribution was published. The new draft act incorporates the amendments made by the Sejm’s sub-committee for financial institutions.
The draft act implements directive 2016/97 on insurance distribution (commonly known as IDD) into the Polish legal framework.
The updated draft act introduces several changes. Most notably, the new act:
- adopts the definition of a ‘person seeking insurance coverage’;
- modifies the existing definition of ‘client’ to the extent it refers to the insurance guarantee. The meaning of client has been restricted to the principal of the insurance guarantee (previously it also covered a person seeking the insurance guarantee and beneficiary of the guarantee);
- imposes an obligation on multiagents and multiagents who sell insurance products on an ancillary basis to provide insurance companies with information on complaints submitted by clients.
What comes next ?
It is still possible that there will be certain amendments to the draft in the further legislative process. Although it is difficult to predict what the final outcome will be, the core elements of the draft are likely to remain – by and large – unchanged.
Most provisions of the draft act are expected to come into force on 23 February 2018. Nevertheless, the deadline for implementation could be pushed back. This is because the EU Committee on Economic and Monetary Affairs has requested the European Commission to postpone the ultimate deadline for the implementation until 1 October 2018.
Whatever position the European Commission takes, the final decision on the implementation date of the IDD in Poland will be up to the Polish parliament.