Regulatory Alerts2023-06-29
Exploration of Closed-Book Portfolios in Individual Life Insurance
The Dutch Authority for the Financial Markets (AFM) conducted an exploration into the service provision, outsourcing, and information disclosure regarding closed-book portfolios of individual life insurance. The findings indicate that while insurers have strategies to manage rising costs through outsourcing or portfolio sales, no acute risks to customer interests currently exist, though the market is shrinking by approximately six percent annually. The AFM will continue to monitor these developments closely, combining quantitative data with qualitative assessments to ensure that customer interests remain central as insurers pursue cost efficiency.
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