UOKiK has completed the last of the proceedings on cancellation fees in unit-linked life insurance policies, with insurer Skandia Życie the last to commit.

Poland’s Office of Competition and Consumer Protection (UOKiK) accused insurance companies of shifting the distribution costs of unit-linked life insurance policies onto consumer by charging them exorbitant cancellation fees. According to UOKiK, these costs should have been treated as a part of the risk of running a business, and hence fall upon the insurer. As a result of UOKiK’s proceedings, the companies have voluntarily committed to significantly reducing the cancellation fees on existing agreements and eliminating them entirely from new standard contracts.

UOKiK earlier accepted commitments from Allianz, Aviva, Nationale Nederlanden, MetLife, PKO Życie (earlier Nordea Życie), PZU Życie, Axa, Europa, Pramerica, Sopockie TUnŻ Ergo Hestia, UNIQA TUnŻ, TUnŻ WARTA, TUnŻ Aegon SA, Compensa TUnŻ SA, Generali Życie TU SA and Open Life TUnŻ SA. The last to join the group, Skandia will reduce cancellation fees in contracts concluded on the basis of 67 standard contracts. For policies requiring regular contributions, the costs will not exceed 29 percent of the value of the contract and in each year of the contract the costs will decrease by 1 or 2 percent. Clients who opt for early cancellation of one-time payment contracts will face a charge of no more than 6 percent of the value of the contract. Skandia will send an offer of a contract annex to all of its clients.

All of the insurers are obliged to inform clients that complying with the conditions UOKiK has established for concluding an agreement does not preclude eventual civil claims. UOKiK is monitoring the implementation of the commitments through reports submitted by the companies.

Additional information for the media:

Press Office, UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone.: +48 22 827 28 92, +48 22 55 60 314, +48 22 55 60 430
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]

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