The Polish Financial Supervision Authority (KNF) has announced the initiation of proceedings to impose a financial penalty on Link4. The insurer may face sanctions for setting motor third-party liability insurance premiums “at a level that does not ensure, at the very least, the fulfillment of all obligations under insurance contracts and the coverage of the costs of the insurance company’s operations”, i.e., for undercutting rates in order to gain market share at the expense of profitability.

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Link4 is yet another company to come under scrutiny by the Polish Financial Supervision Authority (KNF) for this reason. I would remind you that at the end of April 2026, the regulator announced it had imposed a PLN 8.5 million fine on Compensa for failing to ensure premiums were commensurate with risk. When the KNF announced that it was initiating proceedings against this insurer, it also stated that it would analyze the situation at InterRisk in this regard; however, no decision has yet been published regarding this insurer.

Earlier, similar penalties were also imposed on Agro, which the Polish Financial Supervision Authority (KNF) ordered to pay PLN 1.3 million in January 2026. Meanwhile, in early 2024, the KNF penalized TUZ for its involvement in a price war. At that time, the fine for setting rates inappropriately amounted to PLN 1 million.

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As stated in KNF’s announcement, the investigation into Link4 will focus on practices during the period 2023–2025. This was a period during which the insurer indeed faced profitability issues in motor third-party liability insurance; however, as it announced in early 2025, after two years of operating at a loss, it achieved a positive technical result in the first quarter of 2025. However, efforts to improve the portfolio’s profitability resulted in a reduction in premium income. The chart below shows the level of motor third-party liability insurance premiums collected by Link4, based on data from the Insurance Guarantee Fund (UFG).

It is worth noting, by the way, that Link4’s owner, the PZU Group, has decided to merge its property and casualty insurance companies – PZU and Link4. The process is due to be completed in the first quarter of 2027.