Proposed amendment to Insurance Law causes investors major headaches

Insurance companies are expressing alarm and fear over an Insurance Law amendment. The changes, prepared by the Insurance and Pension Funds Supervisory Commission (KNUiFE) headed by Jan Monkiewicz, will force insurance companies' supervisory boards to choose one-third of its members from a list prepared by the Commission and Finance Ministry. "We are against this idea. We have agreed to meet with the KNUiFE director and the Deputy Finance Minister to rationally discuss the matter," said the president of the Insurance Chamber of Commerce Jerzy Wysocki. Insurers see the proposed change as infringing their property rights. "The amendment will have a negative impact on the sector and will discourage investment, forcing companies to rethink their expansion plans," said the president of Amplico AIG Life Michel Khalaf. His colleagues believe that if the amendment becomes law it would force corporations to transform their Polish operations into local branches rather than letting them act as independent entities, which would also mean a capital flight from Poland. "My shareholders will think twice before investing, not only in insurance, but also in other sectors such as banking," said the president of Cardif life insurance company Jan Rosciszewski. Sector representatives believe Monkiewicz is trying to gain unjustified total control over the market. (Puls Biznesu, pp. 1, 4) M.M.