Capital, risk, and renewal: PZU charts its next moves

We are working closely with law-enforcement authorities and tightening internal procedures – for example, by introducing a requirement that advisers to the management board submit written reports on their work for PZU, explains Bogdan Benczak in his first interview since being formally approved as chief executive of Poland’s largest insurance group. He also discusses whether, in the current circumstances, it makes sense to pursue a reorganization of the group at all; when a decision on Link4 can be expected; and how to eliminate the technology debt. He signals possible expansion abroad under the so-called MGA model and does not rule out acquisitions.

Piotr Sobolewski, XYZ: In January, State Assets Minister Wojciech Balczun said he was not certain that the planned capital restructuring of PZU insurer and Pekao bank would be carried out during the current parliamentary term. If even the minister no longer believes the legislative process can be completed efficiently, are you not throwing up your hands as well?

Bogdan Benczak, CEO of PZU: This is an extremely complex process – unique not only in Europe but even globally. The PZU Group is in a very strong financial position. It already has a solid capital base, and a potential reorganization represents an opportunity. Making use of it would release significant additional capital, including at the level of the participating bank.

This is made possible by regulations governing solvency in the banking and insurance sectors. That is why, together with Bank Pekao, we are continuing work on this project. On January 21 we held another meeting of the steering committee. In December 2025, we signed an annex extending the work through the end of 2027.

There is, however, no doubt that under the current legal framework this project cannot be implemented. We are waiting for the necessary legislative changes and are preparing so that, once regulations adopted by the Sejm, the Senate, and the President become a reality, we will be ready to carry out the reorganization in a way that is optimal for the PZU Group and fully compliant with the law.

“The potential benefits are substantial – it is worth trying”

But if there is such a high probability that it will not succeed, why work on it at all?

The potential benefits of a reorganization are significant. Estimates from mid-2025 pointed to the possibility of increasing the regulatory capital of the new banking-and-insurance group by PLN 15–20 billion (EUR 3.6-4.7bn). A reorganization based on combining the capital of PZU and Bank Pekao at the level of a single company – one that, like Pekao, would not be subject to the rules and constraints applicable to insurance undertakings – creates an opportunity to generate a capital surplus at the level where those capitals are combined. Such a surplus could be allocated to additional projects for the Polish economy, to the benefit of PZU Group shareholders. From the perspective of Poland’s economic interest, this represents meaningful value, and therefore it is worth attempting.

If there is an opportunity on the legislative side to carry this project through, we will seek to secure investor support for the idea. At the same time, we must act rationally, which is why we are in parallel optimizing the group in line with the regulations currently in force. We are implementing the PZU Group’s strategy for 2025–27, which was developed before the reorganization concept took shape in its current form. That strategy takes into account the entry into force of the new Solvency II regulations in 2027 and provides for alternative solutions to optimize the PZU Group’s operations and capital position.

As part of executing the strategy, we are rolling out projects related to the internal model, as well as initiatives that will support the continuation of the PZU Group’s dividend policy. When meeting investors in Prague or London, we inform them about the status of the reorganization project. At the same time, we stress that we are not changing our strategy and will continue to consistently improve our operating performance.

An internal model will expand PZU’s growth potential

You mentioned the internal risk-assessment model. Do we know how much capital such an implementation would release?

We have calculated it. It is a material amount, and once the internal model is adopted and approved by the Polish Financial Supervision Authority (KNF), its disclosure will have a positive impact on the group’s ability to grow its business. We are not yet ready to share these figures with shareholders or the market. This does not depend solely on us: depending on the parameters ultimately adopted, the capital benefit may vary. The model itself must be approved by the KNF, with which we are in ongoing dialogue. This is another project unique in Poland, developed in-house by our own teams.

When could such a model be implemented?

A realistic timeline is the first half of 2027. The new internal model, tailored to our specific risk profile, will cover part of PZU’s risks. For the remainder, we will continue to apply the existing standard model.

Why not the entire portfolio?

Because there is no need to do so. From the outset, we assumed it would be a partial model.

The PZU Group works with nine banks

You mentioned cooperation with Pekao on the group’s reorganization. How is cooperation in insurance distribution progressing? With two banks in the group – Pekao and Alior – PZU could sell much more through the bancassurance channel than it does today.

We not only see significant potential for cooperation, both in credit-linked products and stand-alone products; we are already capturing that potential. In the latter category, one example is the availability of PZU Home and PZU Auto products. I see scope for further increasing sales through this channel. Both PZU and the banks stand to benefit: PZU through higher premium volumes, and the banks through commissions on policy sales, which helps diversify their income during periods of declining interest rates. It is worth remembering, however, that we work not only with banks in which we are shareholders – Pekao and Alior. Our insurance offering is currently available in a total of nine banks.

And will that offering be expanded?

Yes. We are looking at the possibility of selling insurance for small and medium-sized enterprises through this channel. Initially, it makes sense to focus on the “M” segment – small businesses – which are less likely to use brokers and for which the bank is often the main, and sometimes the only, point of contact with financial services. In addition, selling insurance programs for sole proprietors is structurally similar to offering products to retail clients.

The key is to design a simple protection product without detailed risk assessment—so-called pre-underwritten cover. That way, the process of concluding the policy, and the substantive challenges associated with it, would not discourage bank advisers from offering it. Moreover, if we are able to enhance the insurance product with additional services tailored to specific industries – such as beauty or HoReCa – addressing their day-to-day needs, from minor repairs to IT support, we will significantly increase the chances of success. To make this possible, however, we also need to prepare in terms of speed of quotation and pricing.

Cooperation between banks and investment fund companies is an attractive business opportunity

What about insurance from Division I – life, savings, and investment products?

When I previously worked in the Baltic markets, I observed that life insurers performed very well in the bank channel, even though banking savings and investment products partly compete with Division I insurance. The sale of individual life products, however, is also influenced by regulation, which is evident in the changing sales mix. The role of investment-linked products is declining, while the importance of protection-oriented insurance with regular premiums is growing.

Another attractive business opportunity is cooperation between banks and our investment fund companies (TFIs). Within the group, we have TFI PZU and Pekao TFI, as well as the much smaller Alior TFI. On the one hand, they compete with one another; on the other, they are also capable of working together. One example of such cooperation is the PZU FIZ Private Debt fund, in which both PZU and Bank Pekao have invested.

A decision on Link4’s future by the end of the quarter

Since you raised the topic of investment fund companies, I have to ask: wouldn’t it be better to have a single fund company within the group? That way, you could overtake the current market leader, PKO TFI.

The temptation is there, but everything has to be carefully calculated. Reorganization, however, takes priority. After that, it will be much easier to make decisions about unlocking further synergy effects within the group’s structure. Once the reorganization is complete, we will certainly consider additional ways to improve efficiency.

If everything ultimately comes down to the numbers, I assume you already have an answer on Link4. A decision on the future of this group company was supposed to be taken by the end of 2025. It was not.

It will be taken by the end of the first quarter. The company’s employees will be the first to be informed.

PZU is working on a single platform for policy sales

In an interview with Dziennik Gazeta Prawna daily, you said that more than 50% of the insurance market is generated by multi-agents and brokers, and that there is significant growth potential there. How do you plan to strengthen your presence with multi-agents?

We are resetting our cooperation with this distribution channel. The changes are aimed, among other things, at better recognizing long-standing partners who deliver above-average performance—particularly in renewals and in the sale of our voluntary products.

We are also preparing—and will soon roll out—an efficient, intuitive sales system that will allow our partners to sell both property and life products from the PZU Group on a single, convenient platform. In addition, our current and planned initiatives are designed to build predictability in our strategy for this channel, as in previous years there was no single, firm, and clear approach to what we wanted to do, with whom, and how.

How do you ensure that tied agents do not feel disadvantaged?

We neither forget nor will forget that our tied agents represent a key competitive advantage for PZU. Through ongoing dialogue with agents, we are introducing effective and efficient management solutions in this distribution channel. We are working on a model in which individual sales channels will not compete with one another but will instead be complementary. This is a major challenge, but we have the necessary knowledge, capabilities, and experience to meet it.

A new front-end system will appear in 2027

You mentioned the front-end system. Will there be a single system for all channels?

Yes. Instead of the several systems we currently operate, there will be one front-end system that will serve all channels, while accommodating the specific requirements of each distribution method. This is part of our effort to eliminate technology debt. In the property segment alone, we currently have five different front-end paths for our products. We also see potential in developing channels for multi-agencies with solutions that increase life insurance sales.

When will multi-agents start seeing results from this change?

I expect the effects of these initiatives to become visible over the next few quarters. As for the front-end system itself, we plan to introduce it in 2027. In this area, our goal is not just to catch up with competitors, but to surpass them. We also need to modernize our claims-handling system, which set industry standards 12 years ago but now hinders more efficient customer service. The first improvements should be visible next year.

We also want to strengthen the direct channel. We plan to further increase engagement among customers using the mojePZU [myPZU] platform – which now has nearly six million users – so that it serves not only as a sales channel but also as a platform for communication and interaction with clients.

A new app version – but the old PZU Zdrowie [PZU Health] challenge remains

How will this work?

The new version of the mojePZU app will feature a refreshed, modern interface and simpler, more intuitive user flows. Processes – especially the most frequently used ones, such as booking appointments – will be faster and more convenient thanks to a new information architecture. The app will run more smoothly, and many functions will be redesigned from scratch. We will also introduce new features based on customer feedback, expanding the range of available services.

So will there no longer be a need to call PZU partner facilities, and I will be able to book all appointments online? Just like I can already do for PZU Zdrowie clinics.

The ability to book appointments online at partner facilities does not depend solely on the new app. Our team is continuously working to ensure that more facilities gradually offer direct online appointment booking through mojePZU.

However, this process requires action on both sides. In addition to PZU Zdrowie’s efforts, the IT systems of the partner facilities must also be adapted. Some facilities opt not to implement the system due to additional costs and organizational effort. Integration is most often undertaken by entities that serve the largest volume of PZU Zdrowie patients and see a tangible benefit for their clients.

The new IT strategy will prepare PZU for AI implementation

Let’s return to technology debt. How will the group eliminate it?

We are acting on multiple fronts. In December, we announced our IT strategy, one of whose goals is to simplify our IT architecture. The main objective is to shorten the time-to-market – the period from product conception to availability for clients—which is currently too long.

At the same time, the new IT architecture will prepare the PZU Group to implement an increasing number of AI tools to support our employees. We want to sell more and serve clients better by leveraging the latest technological advances. My ambition is for PZU to become a leader in as many areas as possible – and professionals using cutting-edge technologies will be key to achieving that.

PZU aims to be a leader beyond insurance

So, eliminating technology debt, leveraging cooperation with banks, and expanding into multi-agencies and the direct channel – are these the ways to reclaim market position in Poland?

Yes, but at the same time, we are open to new investment opportunities in Poland. That is why we joined the Innovate Poland project. Through this, we also want to demonstrate that PZU can be a leader not only in insurance.

As the largest financial conglomerate in this part of Europe, the PZU Group has the potential to become a key source of complex financing for investments that are crucial for the Polish economy – both in infrastructure and innovation – including through its ability to mobilize capital from outside Poland.

At the same time, we will continue to fulfill our mission as the national insurer by carrying out preventive initiatives. In 2025, we ran the “Mistrzu, Zwolnij” [Slow down, boss] campaign, and now we are adding initiatives focused on bicycle safety. With the campaign “Rowerowa Polska z PZU” [a bicycle campaign], we will work with the police to educate the public. We see how lifestyles are changing: bicycles are not only used for sport and active leisure but are increasingly a primary means of transport. Unfortunately, this has also affected accident numbers – over the past five years, roughly 10,000 accidents involved cyclists. It is part of the role of an insurance leader to speak about issues that matter.

We also want to lead in implementing local content in the economy. We will support Polish businesses. Our mutual insurance company, TUW PZUW, is responsible for initiatives related to the nuclear pool. We are also considering other projects that will benefit the Polish economy.

The CEO is considering expansion abroad under the MGA model

Everything seems focused on maintaining the leading position in Poland. Does that mean ambitions for further international expansion have taken a back seat?

We are already present abroad. We hold a leading position in the Baltic markets and are also active in Ukraine. We are closely monitoring developments in insurance markets outside Poland to see if there are attractive acquisition opportunities. We are flexible and pragmatic – if an interesting purchase opportunity arises in Europe, we will analyze it.

We are also considering expanding cooperation with selected partners under the MGA (managing general agent) model. In line with our strategy, we are building competencies here and learning. We see that our competitors are developing in this way, and we are drawing lessons from their experience. This is an opportunity to study the market and, in the future, to launch investments there.

Three preliminary proceedings at the prosecutor’s office

Let’s return to internal accountability. How many cases have been referred to the prosecutor’s office so far [concerns actions taken under the previous management – ed.]?

We are focused on the business and the future, but we are not putting necessary accountability on hold. We have conducted internal proceedings, which over the past two years have resulted in the submission of a total of several dozen notifications of suspected crimes, along with follow-up letters expanding these reports. The most recent were submitted in the last quarter of 2025.

Currently, in the cases where notifications were filed by PZU and PZU Życie [life insurance company], the prosecutor’s office is conducting three preliminary proceedings. In one of them, it was decided to consolidate threads from proceedings initiated by different notifications.

We work closely with law enforcement authorities, with professional legal representatives appointed in each case. In addition, we have a management board representative coordinating these matters. Where we see an opportunity, we take action to recover funds through criminal or civil proceedings.

Changes in cooperation rules with advisers

What are these three legal proceedings about? Let’s clarify.

They concern irregularities identified between 2016 and 2024: fictitious employment, investment matters related to the acquisition of shares in one company, and the handling of a major claims settlement. The proceedings are conducted “in the matter of”, and their further course depends on the prosecutor’s office.

The second aspect is corrective action. Based on the results of our analyses, we have tightened internal procedures and implemented, among other measures, new rules for working with advisers.

How so?

Each adviser is now required, among other things, to submit a written report on the work they have performed for PZU, in person.

How many advisers do you have?

Several. They report regularly on their activities – once a month – but I meet with them regularly.

Are you worried about your position? Is it known when the qualification process for PZU board members will begin?

That is a decision for the supervisory board. As the management board, we continue to operate until the general meeting approves the financial statements for 2025. I am fully focused on addressing the challenges facing the PZU Group and on achieving the objectives set by the supervisory board in September 2025.

Key Takeaways

1. The company continues to address past irregularities. Notifications were submitted to the prosecutor’s office even at the end of 2025. Currently, three preliminary proceedings are underway, covering fictitious employment, the settlement of a major claim, and an investment in a company. Bogdan Benczak emphasizes that PZU is learning from these cases and updating its procedures, for example regarding advisers. They are now required to submit written reports on their work for the group.
2. “The potential benefits are substantial, so it is worth trying” – this is how Bogdan Benczak, CEO of PZU, explains the group’s work on reorganization, despite the growing uncertainty that the current Sejm term will pass the necessary legislation to enable it. At the same time, the group is developing an internal risk-assessment model, which will further increase the capital surplus of Poland’s largest insurer. The model is under consultation with the Financial Supervision Authority (KNF) but is tentatively scheduled to come into effect in the first half of 2027.
3. The group will work on expanding its distribution channels. It already cooperates with nine banks but aims to extend its bancassurance offering to policies for small and medium-sized enterprises. It will also strengthen cooperation with multi-agents. PZU plans to introduce a new sales system, better recognize its top-performing agents, and manage the process so as to avoid conflict with tied agents, who remain a key competitive advantage for the insurer.