Insurance company CAK Dordrecht, parent company of Promovendum and Besured, among others, has been fined for providing incorrect, unclear and misleading information to customers. For this reason, the company must pay 2.5 million euros to the Authority for the Financial Markets (AFM).
The fine was already handed out on November 21, 2022, but the AFM is only now publicizing it due to objection procedures. The reason for the fine was an accumulation of violations. The insurance company had been structurally violating the law for at least three years, according to the AFM.
Information that CAK Dordrecht provided to customers was unclear, incorrect and misleading on important points. For example, insurance conditions were adjusted in such a way that it would be difficult for customers to find out, and car insurance premiums were raised sharply while communication was deliberately vague, so that as few customers as possible would cancel their insurance.
The insurance company also messed with customer reviews, for example by not being open about how the overall satisfaction rating was calculated or by making bad reviews less prominent. The company’s communication was also not good, according to the AFM. CAK Dordrecht only contacted us about important subjects by e-mail or via the site without having received explicit permission to do so.
CAK Dordrecht says it has never deliberately harmed or misled customers. The points pointed out to the company by the AFM would also have been rectified immediately. According to the insurance company, the investigation dates back to 2018. CAK Dordrecht is appealing against the fine.
- AFM fines French bank after ‘strangling loans’
- AFM imposes a fine on Maltese bank in the hands of Marcel Boekhoorn
- Bankrupt insurer Conservatrix asked Hoekstra for support, but did not receive it
