Close [x]
By using the site you express your consent to the use of cookie files, some of which may be already saved in the browser folder.
For more information, please follow the Privacy and using cookie files policy for the service

Office of Competition and Consumer Protection

Increase font sizeDecrease font sizeHigh-contrast versionText versionText versionRSS ChannelGet QR codeWersja polska

You're here: Home > About us > About us > News

Open Life TU Życie - decision by the President of UOKiK

< previous | next > 14.01.2021

Open Life TU Życie - decision by the President of UOKiK
  • Open Life TU Życie engaged in the misselling of unit-linked life insurance to consumers.
  • The insurance company would sell unit-linked life insurance contracts to consumers which entailed funds that were riskier than the consumers’ needs and their risk profile assessment suggested and for a longer term than the customers wanted.
  • The President of UOKiK, Tomasz Chróstny, has imposed a penalty on Open Life amounting to more than PLN 20 million.

When offering investment products, e.g. unit-linked life insurance, financial institutions are obliged to verify – in line with MIFID II – whether the product presented to consumers is adjusted to their financial needs, investment experience and knowledge, as well as the acceptable level of risk. In order to do this, they present their consumers with an adequacy survey to be filled in. If the results of the survey should indicate that the product fails to meet a given consumer’s needs, is too complicated or too risky for the consumer, the insurance institution should refrain from selling such an investment product and inform of the fact in writing. However, if the consumer should nonetheless choose to conclude such a contract, being aware of the risk and specific nature of the product, then they may do so only after submitting a written statement confirming that they have been informed of the inadequacy of the investment product offered.

As a result of notification by the Polish Financial Supervision Authority, after analysing in the course of the proceedings the unit-linked insurance contracts concluded between Open Life TU Życie S.A. and consumers as well as the adequacy surveys filled in by the consumers, the President of UOKiK, Tomasz Chróstny, issued a decision declaring that Open Life TU Życie S.A. had offered unit-linked life insurance to consumers with unit funds which failed to meet their needs (misselling).

In the course of the proceedings, it was determined that Open Life TU Życie S.A.:

  • had suggested products with much riskier unit funds than the consumers wanted according to the survey when offering unit-linked insurance contracts; for example, when a consumer declared in the survey that they found moderate investment risk acceptable, the company would offer higher-risk unit funds;
  • had concluded unit-linked insurance contracts with consumers for a term longer than indicated by the consumers, e.g. the customers said they were interested in a contract with a term of up to 10 years and Open Life TU Życie would offer a contract with a much longer term – e.g. until the customer reached the age of 85. Such practice could expose the consumers to the risk of loss as in the declared period for which they wanted to invest their money the selected funds could not only fail to bring the expected profit, but also generate losses due to the design of the product;
  • had misled some consumers by offering them unit-linked insurance contracts which were inadequate for their needs and risk profile determined on the basis of the survey, while presenting them with a statement transferring to them the responsibility for the insurance company’s decision for signature and not informing them of the actual consequences.

“Offering consumers financial services which fail to meet their needs and risk profile is forbidden under the Polish and EU law. This constitutes an unfair practice which exposes the consumers to the risk of financial loss which is higher than acceptable for those consumers. It is also an example of irresponsible behaviour on part of the financial institution and abuse of the trust of customers, as they may reasonably expect that the insurance company – as an institution which enjoys public confidence – will offer them a product adjusted to their needs and risk profile. Open Life TU na Życie S.A. violated the collective interests of consumers and was fined more than 20 million zlotys for the unfair practices,” says Tomasz Chróstny, President of UOKiK.

The President of UOKiK decided that Open Life TU Życie had violated the collective interests of consumers and imposed on it a financial penalty amounting to more than PLN 20 million (PLN 20,011,600). The undertaking engaged in the impugned practices in the period from 2016 until the second half of 2018 in the case of misselling and until the end of 2018 in the case of misleading consumers. The decision is not final and the company may decide to appeal to a court of law.

Consumer support:

Phone: 801 440 220 or +48 22 290 89 16 – consumer helpline
Email: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer ombudsmen – in your town or district

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL

Attached files


Read also

Repayment holidays - President of UOKiK to take action
Repayment holidays - President of UOKiK to take action

On Friday, 29 July, legislation comes into force that will enable consumers to suspend the repayment of their mortgage loan instalments - for up to eight months. The President of UOKiK is to investigate how the 16 banks inform about repayment holidays and how they grant them. ...>

Unfair practices on shows - New Life and its CEO get fined
Unfair practices on shows - New Life and its CEO get fined

It was supposed to be a promotional campaign called “Get To Know Polish Brand”, a notebook as a gift, discounts worth even tens of thousands of zlotys. There were trade shows with products sold at steep prices.   ...>

Beware of cruises with Incruises - consumer warning
Beware of cruises with Incruises - consumer warning

Dreaming of a trip to the Caribbean and have been tempted by the INCRUISES Cruise Membership programme? Beware, InCruises International is likely to be managing money collected from consumers in a prohibited syndication scheme. ...>

Auction houses - preliminary investigations
Auction houses - preliminary investigations

Have auction houses in Poland violated collective consumer rights or used prohibited clauses in their contracts? President of UOKiK will examine practices of auction houses in the opened preliminary investigations. These include the five largest auction houses in the country.  ...>

Current situation on the fuel market
Current situation on the fuel market

Due to soaring prices and incoming complaints, the President of UOKiK carefully analysed the situation on the fuel market. ...>

Coal: President of UOKiK initiates an investigation procedure
Coal: President of UOKiK initiates an investigation procedure

The President of UOKiK, Tomasz Chróstny, initiated an investigation procedure in connection with the situation on the hard coal market. An extensive market investigation is being conducted with the support of the Trade Inspection Authority. ...>


See also: