Balance Needed Between Personalization and Solidarity in Insurance

Speech - Association of Dutch Insurers | 21 May 2026 1 SPEECH Speech by Hanzo van Beusekom (AFM Board Member) Association of Dutch Insurers 21 May 2026 Thank you for the invitation to speak to you here. My alarm went off early this morning. Not because it was seven o'clock, but because my watch indicated that this was the best time to wake up. My smartwatch has already analyzed my sleep, heart rate, and stress levels. On my phone, I see a message: 'Your health insurance premium has increased by 12 euros this month.' Not because I have become ill, but because I have moved less over the past few weeks, I gone to bed late several times, and because the algorithm sees that people like me, with my profile, claim slightly more often. A little later, I get into the car. The car knows how fast I normally drive, how sharply I take corners, and how often I brake just a bit too late. Before I even arrive at work, I receive a second notification: "Attention! Your car insurance will become more expensive if you do not adjust your driving style." I don't need to explain to you that this is (just barely) science fiction. The technology already exists. The customer is increasingly coming into focus. And this is the moment when many people say: "What is unfair about this? You pay according to your risk." But imagine something else. Suppose you are chronically ill. Or have a genetic predisposition. Or simply have bad luck. You do nothing wrong. You live healthily. You drive carefully. But every month you see the same message: "Your premium is rising." Until the moment comes when it can no longer continue. Not because you are irresponsible, but because the premiums simply become too high. Then, for you as a participant, insurance changes from a safety net… into a lottery. And then the question is no longer: how precisely can we calculate risks? But: who are we still allowing to participate? This is the tension field in which we find ourselves today. The challenges and developments you are facing, I recognize. They are reflected in the three pillars that we at the AFM consider important: digitalization, resilience, and Europeanization. Digitalization makes insurance smarter and sharper than ever. I would like to congratulate you on the innovations you are pursuing.

Speech - Association of Dutch Insurers | 21 May 2026 2 But it also challenges the very heart of insurance: solidarity. And of course, we understand that insurers are working with more and more data. More and more data is becoming available: regarding behavior, health, location, and risks. This makes personalization possible: premiums that align ever more closely with individual risk. This is not science fiction; it is already happening. And let's be honest: this can have positive outcomes. A better assessment of risks: fewer claims, better premiums. Some groups actually become more insurable through refined data. Taxi drivers in Northeast Drenthe do not have to pay for the reckless drivers from Amsterdam. Greater insight can also encourage responsible behavior: consumers become more aware of risks and their own behavior, because it no longer gets pooled into the large solidarity fund. Good behavior is rewarded and can lead to a lower premium. Insight into data and claim patterns also helps make prevention more effective. Innovation helps insurers remain relevant in an international market. It is important to note: this clearly shows that innovation can yield positive results. We are therefore certainly not against innovation. We even consider it necessary to remain competitive. But we are a regulator, so we primarily look at risks. The concept of insurance naturally arose from providing security for everyone in the community. Not based on making a profit, but on solidarity. I also find it commendable that the industry still maintains its own safety net for the most difficult cases. This ensures that consumers remain resilient. And of course, making a profit is not a bad thing. Insurance is about sharing risks. If we individualize everything, we ultimately share nothing. Insurance should not shift too far from sharing risks to personalizing risks. That undermines trust in the sector. The only question is: where exactly is the boundary? Insurers have not only a commercial, but also a societal responsibility. The boundary will not always be clear, but in doing so, you risk that if you do not address this yourself, politics will intervene. And it is questionable whether you are waiting for that. Will you steer yourselves, or do you want to be steered? And steering yourselves is not always easy. Because you have a beautiful and commendable ethical framework. But insurers are increasingly coming from across the border. Do they adhere to your framework? How do we ensure that foreign players also recognize the same ethical framework of the Association? That is where the aspect of Europeanization comes in.

Speech - Association of Dutch Insurers | 21 May 2026 3 Dutch insurers actually have the strength to jointly come up with solutions. What should you take away from me today? Use data, but with policy. Remain innovative, but not everything that can be done, must be done. Actively protect solidarity. Insurability is not a given. Take the wheel yourself. Ensure resilience. Do not wait for legislation – jointly shape the standard. And of course, we as regulators would like to think along with you on this. On a day like today, but also at other times. We are here to listen and engage in dialogue, and we are happy to take insights from the sector with us. The dilemma between solidarity and personalization is also our dilemma. We are happy to think along. That way, we keep the customer in focus without hollowing out solidarity, and I will keep my smartwatch on a little longer.