Consumers require simple and clear information about insurance products. That is why the AFM works together this year with twelve medium-sized and large insurers to improve the provision of information.
The AFM is pleased with the ambition and efforts of the insurers to make their information clearer. This could yield concrete results for their clients. In recent years, the insurers have already made progress in improving the information for clients. The AFM's cooperation with the twelve insurers is intended to further strengthen this process.
The insurers involved share their plans for improvement with the AFM. The AFM will enter into consultations with them on the basis thereof in the course of this year. These consultations will include the structure of client information, making the text used understandable and setting up consumer surveys.
Central focus on client interests
The cooperation with the insurers is in line with the Central focus on client interests key objective of the AFM's supervision. In doing so, the AFM intends to ensure that consumers receive the information they need to make sound financial decisions.
This information has to be traceable, clear and balanced. The information must be 'abundantly clear' and coordinated towards how consumers handle information in practice, at the time of purchase and during the term of the insurance. This is an essential part of placing the central focus on client interests.
Policy conditions are often written from a legal perspective and therefore complicated. Brochures and internet pages are not always completely clear either. Moreover, clients are not always able to find the right information. For this reason, it is not always clear how an insurance product is structured.
Disappointment is always great when an insurer refuses to pay in the event of damage - refusal is generally not expected by the client. But this can never be completely avoided. However, said disappointment can be anticipated and consequently prevented if it is a consequence of unclear information.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.