On 20 March 2020 the Polish Financial Supervision Authority (“PFSA”) published the so-called Supervisory Stimulus Package for insurance industry (“SSP”). SSP is a package of extraordinary measures aimed at boosting the resilience of the Polish insurance industry to the impact of the COVID-19 pandemic conditions.
What does the PFSA offer within the SSP?
In the area of capital requirements and solvency:
lowering the capital requirement by offering the possibility of calculating the quarterly SCR without changing the parameters
opening a fast-track for the approval of ancillary own funds and long-term guarantee (LTG) measures
derogating from the requirement to apply the maximum technical interest rate
In the area of day-to-day supervision:
suspending new inspections of insurance companies and insurance distributors and, in relation to ongoing inspections – conducting these inspections with lower intensity (mostly using electronic communication)
minimising or postponing burdensome supervisory activities (e.g. the SREP, stress tests, product intervention measures)
releasing or postponing some reporting or disclosure requirements (e.g. reporting in respect of unit-linked products or submitting questionnaire for the purpose of the review of Solvency II system)
applying a pragmatic approach to the documentation of the underwriting process for insurance contracts. The PFSA accepts that the entire process may be conducted remotely (by phone, e-mail or online), subject to the customer’s consent (the customer’s consent may also be expressed remotely); such process should be documented by collecting appropriate electronic files
Legislative initiatives in the area of management of insurance contracts:
As PFSA stated, catalogue of SSP’s measures is non-exhaustive. These measures may be implemented depending on how the situation unfolds.
Please contact CMS experts for more information and to stay on track with a detailed proposition within SSP's.