Polish insurers are facing tighter rules on selling investment-linked life policies as the Polish financial market regulator, KNF, approved draft assumptions of an adequate product intervention.
KNF wants to be able to restrict or prohibit distribution and sale of life policies linked to insurance capital funds bearing features „unacceptable” for the regulator, pointing to:
- a lack of real benefit for investors as measured by a rate of return,
- investing means from premiums into assets bearing high risk and low liquidity,
- providing „unequivocal and non-transparent” information on fees.
„The completion of works on the product intervention is planned for Q2 2020 at the latest,” KNF said, adding the assumptions will now be consulted with other EU regulators and the insurance sector.
