Information regarding servicing the contracts covering the risks situated in Poland, concluded before January 1, 2021 by UK and Gibraltar insurance undertakings (Brexit)

modification date

The UKNF – Polish Financial Supervision Authority informs that pursuant to the Article 8 of the Act of January 21, 2021 amending the Act on trading in financial instruments and certain other acts (published in the Polish Journal of Laws of 26 February 2021, item 335)  - the Polish law allows the UK and Gibraltar insurance undertakings to continue servicing the contracts covering the risks situated in Poland, concluded before January 1, 2021, without additional authorisation, until the day these contracts expire (“run-off”).

However, pursuant to the same Article, these insurers need to comply with the same restrictions, listed in the Article 173 of the Polish Insurance and Reinsurance Act of 11 September 2015, as the domestic insurance and reinsurance undertakings which authorisations have been withdrawn by the KNF:

1.    In case of insurance activity, the insurance undertaking may not:
1) conclude the insurance contracts;
2) extend the existing insurance contracts;
3) cover new risks under the existing insurance contracts;
4) increase the insurance sums in the existing insurance contracts;
5) amend the insurance contracts extending the liability of the insurance undertaking, other than increasing the insurance sums.

2.    In case of reinsurance activity, the insurance or reinsurance undertaking may not:
1) enter into inwards reinsurance and retrocession contracts;
2) extend the existing inwards reinsurance and retrocession contracts;
3) accept new cessions under the existing inwards reinsurance and retrocession contracts;
4) increase the liability under the existing inwards reinsurance and retrocession contracts.

This information is provided for convenience only. The UKNF does not provide individual advice regarding the ongoing/future business activities, applicable law and legal requirements.