Dutch Authority for the Financial Markets publishes review urging banks and insurers to embed consumer behavioural insights more systematically

The Dutch Authority for the Financial Markets (AFM) published an exploratory study on how banks and insurers apply consumer behavioural insights in practice, building on its 2021 principles to “understand”, “steer” and “measure” behaviour. The review finds that behavioural expertise is becoming more prominent within firms, but that behavioural applications are still largely focused on practical interventions to prevent or resolve specific financial problems. Banks and insurers increasingly employ behavioural specialists with varied academic and practical backgrounds and also bring in external expertise, with knowledge shared through internal events, thematic sessions and platforms. Interventions tend to centre on tools and guidance to improve consumer insight, overview and self-reliance, while the AFM notes that information alone is usually insufficient to drive behavioural change. Less frequently used are approaches that change the choice environment or adjust product offerings, which the AFM highlights as an area with substantial potential. The report suggests broadening the use of behavioural insights to better understand behaviour in context and integrating them more structurally into standard processes such as product development, including via PARP. On 26 June, the AFM and the participating firms planned to discuss the findings in a roundtable meeting as a continuation of the dialogue on how behavioural insights can be applied most effectively.