Starting from 1 October 2025, companies acting as policyholders for group insurance policies may be required to obtain a licence from the Netherlands Authority for the Financial Markets (AFM). This requirement applies to companies offering insurance to their customers and receiving remuneration for doing so.
The AFM has previously published its interpretation following a ruling by the Court of Justice of the European Union (CJEU), which clarifies the regulatory framework for group insurances.
Understanding the new requirement
In short, any entity that (i) offers customers a choice to join the group insurance policy, (ii) in exchange for a remuneration, will be classified as an insurance intermediary under the Insurance Distribution Directive EU (2016/97) and is subject to licensing requirements and business of conduct rules.
For further insights, we refer to our previous blog post.
Exemptions from the licence requirement
Not all companies providing group insurance need a licence. In the following cases an exemption may apply:
- If customers are automatically covered by the group insurance without having to make a choice (this includes a choice about the (specific) insurance cover, insured sum, different policies and/or insurance undertaking); and
- If the company does not receive any financial advantage for the
membership of the insurer; or
- If the company meets the conditions of Section 7 of the Exemption regulation Wft (Vrijstellingsregeling Wft).
How to prepare
Companies offering group insurance should assess whether they fall under the licensing requirement and, if so, begin preparations for the application process as soon as possible. Companies that may not benefit from an exemption must secure their licence by 1 October 2025.In practice, the AFM requires at least 13 weeks to process license applications. Consulting with our regulatory experts can help ensure (timely) compliance and avoid potential delays.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
