The financial services complaints authority says insurance companies must limit premium rises to 10% following ‘dozens’ of reports about increases of 20% and more.
Two of the complaints came from Achmea and Meeus Groep customers, who were both faced with what Kifid said were ‘exorbitant’ premium hikes. In one case Achmea raised the premiums for a general insurance package 20.22%. In the second, the cost of moped insurance via the Meeús Groep went up almost 174%.
The premium increase in these two cases was so far-reaching that the contracts should be considered new ones, Kifid said. And because the insurance companies had not cancelled the old contracts, they remained valid and the old premiums still applied.
Changes to current contracts should be limited in terms of their financial impact and a maximum rise of 10% would be appropriate, the organisation said in a statement.
Kifid’s recommendations are not legally binding, but are usually adopted by insurers and the organisation said it expected they would fall into line about a maximum premium hike.