Poland’s Financial Supervision Authority (KNF) is set to become the national resolution authority for insurers and reinsurers under the planned implementation of the EU Insurance Recovery and Resolution Directive (IRRD), instead of the Bank Guarantee Fund (BFG), which had been preparing for this role for several years, Gazeta Ubezpieczeniowa reported.

According to the draft legislative framework published on September 2, 2026, KNF will receive tools allowing early intervention in insurance companies at risk of failure, with the aim of protecting policyholders, limiting the impact on financial stability and minimizing the potential use of public funds.

The draft also provides for arrangements to separate KNF’s resolution responsibilities from its regular supervisory functions.

The decision represents a change from the institutional model considered in recent years. BFG had been developing insurance resolution expertise and methodologies, and its 2025–2030 strategy included preparations for implementing the new EU framework, while acknowledging that its final role would depend on the legislator’s decision.

Under the new framework, resolution mechanisms should allow authorities to restructure a troubled insurer or manage its orderly exit from the market, avoiding an uncontrolled insolvency and its potential consequences for policyholders and financial stability.

[daniela.ghetu]