The second meeting summarizing “The signals from the market” took place on 28 January 2008.

The following issues were raised:

The General Director of Internal Market and Services, Jörgen Holmquist delivered the closing public hearing. He drew attention to the fact that the introduction of Solvency II would establish global standards and it is important to keep the established time frame. QIS3 study was considered as a success, showing a good response to market-based approach to capital exposed to risk.

QIS4 enable CEIOPS to prepare the ground for future measures of the level 2 implementation.
Jörgen Holmquist underlined the importance of CEIOPS and the need for greater convergence of insurance supervision, similarly as it was highlighted for all level 3 committees in the review of the Lamfalussy.

 

public_hearing_2_programme2008_en.pdf
Program

 

public-hearing-2_summary_minutes_pl.pdf
The summary of the day

 

Presentations on the panel can be found at:

http://ec.europa.eu/internal_market/insurance/solvency/presentations_en.htm

 

The first meeting summarizing “The signals from the market” was held on 21 June 2006.

The following issues were raised:

Commissioner McCreevy delivered the closing public hearing. Attention is drawn to high level of harmonization of Solvency II from the perspective of an integrated insurance market; strengthening the protection of policyholders and the importance of the process of supervision.

 

public-hearing-1-programme_minutes_en.pdf
Programme

public_hearing_1_profile_en.pdf
Speakers profiles

summary_hearing_1_en.pdf
Summary of the day

hearing_1_insurance_newsletter_en.pdf
See also Insurance newsletter – Special edition for the public hearing

Further details regarding the signals from the market, in the form of presentations, speeches, can be found at:

http://ec.europa.eu/internal_market/insurance/solvency/hearing_en.htm

Polish Insurance Association for the first time took part in the Economic Forum in Krynica. In this year’s edition, which took place on 9 – 12 September, PIU has organized a panel discussion Fri “Private health insurance as part of health care in Europe.”

The panel was attended by special guests: Mrs. Agnes Chłoń – Domińczak, a former Deputy Minister of Labour and Social Policy, Mr. Zsombor Kovacsy, former President of the Health Insurance Supervisory Authority of Hungary, Mr. Martin Oxley, CEO of the British – Polish Association of Commerce, Mr. Maciej Bogucki, Vice President of  Employers’ Association of Innovative Pharmaceutical Companies INFARMA, Mr. Paweł Kalbarczyk, Chairman of the Health Insurance and the PIU Director of Health Insurance PZU SA, and Jan Grzegorz Prądzyński, President of the Polish Insurance Association.

The panel was moderated by Mr. Stanislaw Borkowski, Board Member of Allianz Poland SA.

Mrs. Agnes Chłoń – Domińczak outlined the government’s role in the healthcare system in Poland and the opportunity to participate in the private health insurance. She emphasized the need for structural reforms in health care. She recalled that in Poland the share of public expenditure is lower than the average in OECD countries, which is 73 percent. And in our country – 70.8 percent. She emphasized that the potential of private health insurance can improve the efficiency of health care spending.

The characteristics of the Hungarian health care system based on mandatory insurance state was presented by Mr. Zsombor Kovacsy. He stated that the system is dominated by the Hungarian public service, but there are several areas of participation of private health care based on healt insurance and health care accounts.

Mr. Martin Oxley introduced the system solutions for health insurance in the UK, indicating the role of the social security system and the private part of the medical market.

By contrast, Mr. Maciej Bogucki indicated the need for closer cooperation of the insurance, medical and pharmaceutical industries as natural partners serving the same customer.

Paweł Kalbarczyk focused on the concept of private health funds as a solution to financial problems of the health care system in Poland. It is a legislative proposal of the Polish Insurance Association. In discussing the proposal to the PIU, he pointed to the problems of the health care system in Poland: its low efficiency, lack of coordination of health care, lack of alternative payers and lack of alternative sources of funding.

As an antidote to these problems, on behalf of the PIU, he presented a proposal based on the principles of competitiveness and solidarity. It assumes the possibility to choose between staying in the public system of a single payer, or in many Private Health Funds (PFZ).

The proposed reform would raise standards of health care and health security through better access and higher quality, as well as long-term health management tools (programmes, examinations, promotion of healthy lifestyles).

The panel organized by the PIU met with great interest of the guests of the Economic Forum, who despite the fact that this was the last part of this event, filled the room where the discussion on health insurance took place about.

Account of the panel is also to be found on the official website of the Economic Forum on Onet.pl:
http://biznes.onet.pl/prywatne-ubezpieczenia-na-ratunek-sluzbie–zdrowia, 18493,3034818,3028364,30,1, news-detail

Polish Insurance Association is already preparing for next year’s edition of the Economic Forum.

The European Commission responded to the information provided by the Polish Insurance Association on 1 June this year on non-compliance with EU standards governing the Polish law for drivers to hold mandatory liability insurance policy (OC). PIU appealed to the EC amendment of the Law on Road Traffic about liquidation of the right of the police to tow a vehicle without OC and not introducing in its place any other penalties.

The EC in response stated that it will call the Polish authorities to explain the reasons for such changes in the Polish law. General Directorate for Internal Market and Services that leads this case explained, that each European Union member is obliged to take appropriate measures to ensure the obligation to hold such an insurance by vehicle owners.

The European Commission noted that the solution adopted by a Polish legislator “seems to reduce the effectiveness of Poland’s fulfillment of the obligations of ensuring that vehicles registered on a permanent basis in its territory were covered by liability insurance policy.” A key element of this obligation is to ensure “that victims of road accidents receive adequate compensation for suffered damages.” The share of uninsured vehicles on the road can therefore, according to the EC, “have a negative impact on the amount of compensation paid to victims of road accidents.”

PIU for many months has been lobbying for an amendment of the traffic law: a vehicle whose driver does not have with him/her documentation confirming the liability insurance contract (or has never bought the policy), is taken off the road by the police. The best solution would be retention of registration certificate. Meanwhile, the parliament under the pretext of “making the life easier for drivers,” led to the situation where the lack of insurance equals to only 50 PLN fine and a penalty imposed by UFG. Parliament has also prevented the uninsured vehicle off the road, which poses a huge risk especially to victims of accidents.

 

Notice in PDF format

Legal proceedings have started vs Casus Investigation of Insurance Claims, which according to the Polish Insurance Association, misleads customers through their advertisements, by giving false information on insurance companies. District Court in Warsaw has already given the case a signature II C 620/09.

A few weeks ago PIU filed a lawsuit against Casus demanding an apology to insurance customers for misleading them and to the insurance companies for infringement of their good name.

PIU also called Casus to pay 100 thousand PLN for charity foundation of the Child’s Health Centre “Towarzystwo Przyjaciół Centrum Zdrowia Dziecka“ to support of funding of the Institute’s Library.

In addition, the Office for Competition and Consumer Protection (Urząd Ochrony Konkurencji i Konsumentów) has also been dealing with this case. Currently, the Office of Consumer Policy Department, is examining the notice. Within the next month UOKiK should send a formal notice to PIU of further steps.

 

Notice in PDF format.

Polish Insurance Association supports the idea of a Travel Security Fund (FZT) – a mechanism for protecting clients from unfair travel agentcies. The fund would be based on contributions paid by all tour operators. The contribution will depend on the type of service – the highest would be paid for a customer sent on charter trip, less for the client sent on a bus trip or youth trip. This system would complement the current model of the guarantee provided by commercial insurers. The guarantee would remain the basis for the system.
PIU also proposes that the charter tour operators could operate only as joint-stock companies – perhaps with a larger amount than the statutorily required 0.5 million PLN. From this point of view, charter tour operators are most likely to go bankrupt.
The form of a joint-stock company will oblige companies offering charter trips to give regular audited financial reports, so insurers will be able to assess the situation of the company and the risks associated with insurance better, therefore customers will receive better protection.
PIU keeps the media informed about FZT. PIU also took part in Monday’s press conference on the subject. PIU will keep monitoring the law project, which is being prepared by the Ministry of Sport and Tourism.

Witold Janusz agreed to become the new President of the PIU Committee of the Property Insurance. He replaced Robert Szyszka, who due to increased professional responsibilities resigned from directing the work of the Committee.

The Board of the Polish Insurance Association is grateful for Robert’s time and contribution and it also appreciates the cooperation with Witold Janusz.

Witold Janusz is Lloyd’s Poland General Representative.

He graduated from the Faculty of Law and Administration, University of Gdansk. He began his professional career in 1978 in the Department of TUiR Warta SA in Gdynia, in Department of Compensation and Liability of Shipowner and Marine Carrier. In 1992 he became a Vice President of Insurance Department STU Hestia, then STU Ergo Hestia SA. Then, in 2004 he became CEO of TU Gerling Poland.

Since March 2008, he has been Lloyd’s Poland General Representative.

Polish Insurance Association is cooperating with the Polish Information and Foreign Investment Agency (PAIiIZ). PIU prepared a report – “The insurance market in Poland in 2008.

The report discusses in detail the development of insurance market in Poland in 2008 on the light of the macroeconomic situation in Europe and worldwide. It also shows a place of our country on the map of the Old Continent and presents a number of relevant data relating to distribution channels, capitals and major parameters of the financial sector. The report has already been posted on the website of the PAIiIZ www.paiz.gov.pl , under “Publications.”

Direct link to pages with the report:

http://www.paiz.gov.pl/index/?id=d714d2c5a796d5814c565d78dd16188d

In this way, PIU started broader cooperation with PAIiIZ. In the future, analysis and studies on the insurance market for foreign investors will be regularly prepared by the PIU and published by PAIiIZ.

Another amendment to the Law on Road Traffic was published in Dziennik Ustaw (No. 97 pos. 802 of 23 June 2009). It introduces new rules for further technical examination of the vehicle, whose cost is included in the compensation of the third party insurance (OC) or mandatory Casco (AC). Current obligation to carry out further technical examination of the vehicle, which was repaired for the cost exceeding 2,000 PLN, is abolished.
That approach is consistent with the Motor Insurance Commission of the Polish Insurance Association, which supported this amendment.

The consequence of adopting new rules requiring additional technical examination is also the following change:

–    Art. 17 of the Act of 22 May 2003 on insurance activities (Journal of Laws No. 124, item. 1151, as amended. Zm.), which reads as follows: “Article 17th. The holder of a motor vehicle is obliged to inform the insurance company to conduct additional technical studies referred to in Article. 81. 11 paragraph 5 of the Act of 20 June 1997 – Road Traffic Law (Journal of Laws of 2005 No. 108, item. 908, as amended) A technical examination is regarded as a normal consequence of the injury and its costs are covered by insurance under the AC policy and the OC policy of the perpetrator.”

–    Art. 36a of the Law of 22 May 2003 on compulsory insurance, Insurance Guarantee Fund and Polish Motor Insurers’ Bureau (OJ No. 124, item. 1152, as amended. Zm.), which reads as follows: “Article 36a. Compensation for third party insurance of motor vehicles includes the cost of additional technical examination referred to in Article. 81. 11 Section 5 of the Law – Traffic Law.. “

The text of the Act is on the website:

http://www.infor.pl/dziennik-ustaw,rok,2009,nr,97/poz,802,ustawa-o-zmianieustawy—prawo-o-ruchu-drogowym-oraz-niektorych-innych-ustaw.html

The new rules would eliminate undue cases of additional tests of vehicles after the payment of compensation for minor injury. Additional testing will be performed only in case of damage, having a significant impact on the traffic safety. As a result, the new regulation will affect the cost of settling claims, since the cost of additional technical examination is part of the compensation.

On 10 June this year the Parliamentary Committee on Public Finance adopted, in the first reading, a bill on an amendment on the Law on Insurance Business and the Law on Public Offering of Financial Instruments to Organized Trading and Public Companies.

Adopted by the Committee the bill adjusts the provisions of the Act on insurance activity to the provisions of Directive 2007/44/EC as regards the threshold at which the insurance company is obliged to notify the supervisory authority to ensure the acquisition of shares or to have exceeded 33% of the votes at the general meeting or in the capital Establishment, on the threshold of 331 / 3%. The proposed amendment therefore alters the current threshold of 33% – referred to in Article. Paragraph 35. Article 2. Paragraph 36. 1 of the Law on Insurance Business – on the threshold of 331 / 3%.

The Committee on Public Finance will forward the adopted bill for the first reading in Sejm.
The Act will come into force after 14 days from the date of its publication.