Leniency for customers in a distressing situation
If a customer is in a distressing situation, he or she can turn to the insurer. The insurer will make every effort to reach a solution. No one-size-fits-all approach is possible: every case is different, it involves customization.
In the past, insurers have concluded agreements with consumer foundations on the level of costs in unit-linked insurance, and have compensated customers for a total of around three billion euros. Insurers have also activated customers with unit-linked insurance. This means that they have helped (and continue to help) customers to make a conscious choice about the future of their investment insurance: continue, adjust or stop unchanged. Insurers have approached all customers individually.
Customers can also end up 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 specific situation of the customer, where the general compensation scheme does not provide for a solution and as a result of which the customer cannot continue the unit-linked insurance unchanged. In such a case, the insurer may be able to contribute to a solution. A possible loss from disappointing investment income or the fact that someone cannot claim the general compensation scheme is not a ground for leniency.
What kind of special circumstances must exist? These are situations in which the customer has to deal with a significant decrease in family income for specific reasons. For example, if someone is involuntarily unemployed or incapacitated for work for a longer period of time, and has a significant drop in income as a result of which he or she can no longer pay the fixed costs. Or someone has to sell their own home due to a divorce and cannot repay the mortgage from their own resources. Lowering the premium, stopping the premium payment or buying off the insurance are the only real options that remain. If the customer reports, the insurer will consult with him or her to investigate the possibilities of a solution. Attention is paid to how big the drop in income is, or how long unemployment lasts. We also look at the role that the unit-linked insurance itself plays. For example, are there opportunities to adjust these and thus improve or solve the situation? A contribution to a solution may, for example, consist of the insurer taking (part of) the premium for its account. It is always tailor-made.
Insurers always assess a customer's situation on its own merits and will offer a suitable solution where necessary and possible. If consumers do not agree with the insurer's decision, they can – after going through the insurer's internal complaints procedure – lodge an objection with the Financial Services Complaints Institute (Kifid).