The Dutch Authority for the Financial Markets (AFM) published findings indicating that loyal customers sometimes pay higher premiums for non-life insurance than comparable newer customers, and warned this may conflict with requirements for fair and careful customer treatment. The AFM plans to engage with the insurers concerned on compliance with product development standards. The review covered 31 non-life insurers and compared profit margins for policies in force for at least nine years with those held for one to two years, across 47.7 million retail motor (third party, third party plus and comprehensive), household contents and liability insurance policies over 2021–2023. In 2023, almost half of insurers showed higher profit margins on loyal customers for at least one product group, often with margin increases of more than 10% between the one-to-two-year and nine-plus-year customer groups; the share of insurers with higher loyal-customer margins ranged from 19% to 30% across the three motor lines and was 23% for household contents, while liability insurance showed virtually no such pattern. The AFM noted that loyal customers also regularly pay less than comparable newer customers, but emphasised that where margin increases occur after the one-to-two-year point, insurers should be able to explicitly justify that customer interests have been balanced in line with legal standards; absent risk-profile differences or another grounded reason, higher premiums for loyal customers may indicate breaches of product development rules. The AFM has already challenged insurers where it identified higher margins for loyal customers, will hold follow-up discussions with them, and is also consulting with the Dutch Association of Insurers while continuing to monitor developments in margin personalisation in the insurance sector.

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