Leniency for customers in a distressing situation
If a customer finds himself or herself in a distressing situation, he or she can turn to the insurer. The insurer will make every effort to find a solution. No standard approach is possible: every case is different, it is about customisation.
In the past, insurers have entered into agreements with consumer foundations on the level of costs in unit-linked insurance policies, and have compensated customers for a total of around three billion euros. Insurers have also activated customers with unit-linked insurance policies. This means that they have helped (and will continue to help) clients in making a conscious choice about the future of their unit-linked insurance policy: continue, adjust or discontinue unchanged. Insurers have approached all customers individually.
Customers can also find themselves in a distressing situation after compensation and making a conscious choice about their insurance. In general, these are very special circumstances or an unfortunate combination of all kinds of factors in the customer's specific situation, where the general compensation scheme does not provide a solution and which prevent the customer from continuing the unit-linked insurance policy unchanged. In such a case, the insurer may be able to contribute to a solution. A possible loss due to disappointing investment returns or the fact that someone is not entitled to the general compensation scheme is not a ground for leniency.
What special circumstances must exist? These are situations in which the customer has to deal with a significant decrease in household income due to specific causes. For example, if someone is involuntarily unemployed or incapacitated for work for a longer period of time, and has a significant drop in income that means that he or she can no longer pay the fixed costs. Or someone has to sell their own home due to a divorce and is unable to repay the mortgage from their own resources. Lowering the premium, stopping the premium payment or buying out the insurance are the only realistic options left. If the customer comes forward, the insurer will consult with him or her to investigate the possibilities of a solution. Attention is paid to the extent of the drop in income, or how long unemployment lasts. The role of unit-linked insurance itself is also examined. For example, are there possibilities to adjust them in order to improve or solve the situation? A contribution to a solution can consist, for example, in the insurer paying (part of) the premium. It's always tailor-made.
Insurers always assess a customer's situation on its own merits and will offer an appropriate solution where necessary and possible. If consumers do not agree with the insurer's decision, they can lodge an objection with the Financial Services Complaints Institute (Kifid) after going through the insurer's internal complaints procedure.
