Mateusz Kosiorowski
WIBOR litigation, part 2: Can basing variable interest rates on WIBOR be deemed an abusive clause?
Some consumers are attempting via the Polish courts to undermine provisions in credit agreements setting variable interest rates on the basis of the WIBOR benchmark. They hope that the courts will hold these clauses to be impermissible under Civil Code Art. 3851. This would allow their credit agreement as a whole, or the specific WIBOR provisions, to be set aside. But does Polish law empower the courts to examine the alleged abusiveness of such provisions?
WIBOR litigation, part 1: Can the WIBOR benchmark be challenged as the basis for setting variable interest rates?
Variable interest rate loans based on the WIBOR benchmark are a major part of the Polish financial market. For years the WIBOR rate remained at a low level, but it shot up in 2022. The WIBOR 6M stood at 0.25% in January 2021, but by July 2022 it had hit a peak of 7.43%. Currently the WIBOR 6M is a little lower (5.05% as of 10 June 2025), but it has yet to retreat to its earlier low values.
Interest on capitalised costs of credit, and the sanction of free credit
Following the high-profile judgment of the Court of Justice of 13 February 2025 in C-472/23, Lexitor, the issue of the sanction of “free credit” has become more and more dynamic. In that judgment, the Court of Justice did not address the legality of charging interest on capitalised costs of credit, i.e. charging interest also on the portion of the loan drawn down but earmarked for payment of the costs of issuing the loan (e.g. commissions). This issue will be addressed by the Court of Justice in subsequent cases where Polish courts have decided to seek preliminary rulings.
Court of Justice: The sanction of free credit must be proportionate
In C-472/23, Lexitor, the Court of Justice of the European Union held that the sanction of “free credit” must reflect the principle of proportionality, and need not be applied simply because of the presence of abusive provisions in the credit agreement having an impact on annual percentage rate.
Draft Recommendations on insurance distribution and their impact on foreign insurers
Will the proposed Recommendations of the Polish Financial Supervision Authority on insurance distribution affect the activity of foreign insurers operating in Poland through a branch or under the EU’s freedom to provide services and passporting scheme?
Vehicle liability insurance: Automatic extension of coverage, and withdrawal of an insurer’s licence to conduct insurance activity
On 16 April 2025 the Polish Financial Supervision Authority banned the Bulgarian company Insurance JSC DallBogg: Life and Health from offering mandatory civil-liability coverage for operators of motor vehicles in Poland. The decision was issued under the rarely-used procedure of Art. 214(5) and (4a) of the Insurance and Reinsurance Act of 11 September 2015.
The European Single Access Point—a new information obligation for insurers
Insurance and reinsurance companies should soon prepare to comply with a major new regulatory obligation, to transmit data to ESAP. The proposal for implementing this change in Poland has been released on the website of the Government Legislation Centre.
Key resolution by Supreme Court of Poland on third-party liability insurance for motor vehicle owners
On 11 September 2024, a panel of seven judges of the Supreme Court of Poland issued a resolution in case no. III CZP 65/23 regarding the settlement of claims within the motor insurance market. The ruling involves the possibility of using cost estimates to determine insurance claims when it is no longer possible to actually repair the vehicle. In December 2024, the Supreme Court published the justification for the resolution and the motives for its ruling.
The Polish Financial Supervisory Authority plans to repeal some recommendations and guidelines in connection with DORA
On its website, the Polish Financial Supervisory Authority (KNF) has announced that it plans to repeal the current recommendations and guidance for financial institutions on managing IT and cybersecurity, covered by the EU’s DORA regulation.
In search of lost profit: Business interruption insurance in disastrous times
The classic form of protection against the financial consequences of natural disasters is property insurance, primarily covering the risk of physical damage or destruction. But that is not all. Insurance for businesses can also protect against the loss of profits and against unanticipated costs of business interruption.
Poland’s insurance and banking industries issue credit protection insurance guidelines
In May 2024, the Polish Chamber of Insurance and the Polish Bank Association jointly issued Good Practice Guidelines on Credit Protection Insurance, with oversight of the financial regulator. The guidelines address a number of key issues, from creation of CPI products, to marketing, distribution, and monitoring of compliance.
Insurers of trade receivables should verify whether their outsourcing of collections complies with KNF guidance
Guidance from the Polish Financial Supervisory Authority of 25 March 2024 on certain aspects of outsourcing by insurers and reinsurers also covers collection proceedings related to performance of insurance contracts. Insurers offering trade credit for which collections are carried out by external providers must verify whether this outsourcing is compliant with the regulator’s position.
