Regulatory Alerts2025-04-08
A Fair Premium for Loyal Policyholders
The Dutch Authority for the Financial Markets (AFM) issued this report to investigate 'margin personalization' in the Dutch private non-life insurance sector, finding that nearly half of the examined insurers charge higher profit margins to loyal customers than to new ones without actuarial justification. The study, based on 47.7 million policies across 18 insurers, reveals that this practice is most prevalent in all-risk car insurance (30%) and contents insurance (23%), potentially disadvantaging vulnerable consumers who switch less frequently. The AFM has engaged with the involved insurers regarding compliance with product development norms and will continue to monitor the sector to ensure fair treatment and pricing.
Share