Compensa must pay millions for too cheap liability insurance. Fine reduced

The Polish Financial Supervision Authority (KNF) has imposed a fine on Compensa for setting insurance premiums too low, which violates insurance regulations. The fine was reduced from 8.5 million PLN to 5 million PLN after a review. This decision reflects ongoing price wars in the motor liability insurance sector, where insurers have kept premiums low despite rising claims costs. The situation has raised concerns about the sustainability of the insurance market, as the average cost of claims has significantly increased while premiums have stagnated. The president of the Polish Chamber of Insurance highlighted that this issue affects nearly half of the property insurance market in Poland.