Poland advances insurance reforms, adding EU Solvency II rules and debating mandatory farm coverage

The Polish government has placed a draft amendment to the Insurance Activity Act and the Reinsurance Act on its legislative agenda, aiming to fully implement the EU Solvency II directive by the end of January. The proposal would grant smaller insurers a simplified "small and uncomplicated" status, easing reporting burdens, and expand the powers of the Polish Financial Supervision Authority (KNF) to monitor insurers’ financial health, including climate‑related risk assessments.

Separately, the Ministry of Agriculture and Rural Development is evaluating a system of compulsory agricultural insurance to improve protection against drought, frost and other extreme weather events. Officials say the current voluntary scheme leaves many farms without timely payouts, contributing to indebtedness. No legislation has been drafted yet, but the ministry is assessing the model to ensure broader coverage and faster compensation for farmers.