The development of the property finance market in Poland depends on many factors. From the practical point of view, it is important to identify the major determinants of the market development, which is measured by the level of sources of financing involved. According to the authors, sources of financing in the amount of 250 b zloty are possible to be reached within 15 years, where the current state amounts to 50 b zloty. However, such a scale of development is based on the premise of establishment of stability on the market of mortgage-secured debt. To this end, control of the specific risk related to this market is of vital importance. Such control will only be possible with an advanced system of insurance and guarantees of mortgage loans.

Insurance of mortgage receivables provides for a larger flow of funds to the property market, stimulates its development and increases the number of persons that may become real property owners (thanks to the enhanced access to mortgage lending).

Risk transfer and risk dispersing may take place not only through the application of appropriate insurance products. An important mechanism of risk transfer is the establishment of institutions trading in mortgage debt on the secondary market which not only transfers the capital, but also transposes part of the risk from banks to other market segments. In the context of a stable mortgage lending market, this risk occurs less frequently. However, in extreme situations, such as a deterioration of the global economic situation or the economic situation in Poland, the diversification of risk will exert a positive impact on the banking system.

In the paper the authors present significant elements relating to the issue of credit risk and its transfer (insurance) onto an insurance company. Using several North American and West European countries as an illustration, the authors have analysed relevant solutions in the area of insurance products. In the conclusion, they have proposed directions of activities as well as product, institutional and legal solutions applicable in the Polish environment.