a.s.r. wants to be the best financial service provider for customers and advisors, offering simple and transparent products and services that meet their needs. a.s.r. works closely with independent intermediaries who know customers' personal situations well and can give them the best advice. It is essential to maintain and build excellent relationships with advisors, who play a crucial role in serving customers. a.s.r. also offers customers the ability to quickly and easily manage their affairs and new insurances in the digital a.s.r. environment.
Product Approval & Review Process
The Product Approval & Review Process (PARP) assesses the quality of products and their relevance for customers. In the PARP, in addition to the business lines, Risk Management, Legal Affairs, Compliance and the Actuarial Function (AF) jointly assess all product-related financial and non-financial risks for a.s.r. and its customers. The PARP ensures that a newly developed or modified product is reviewed and deemed appropriate before it is offered. It encourages continual improvement based on feedback from customers and advisors, social developments and current circumstances, such as the impact of economic conditions and changes in legislation and regulations. The PARP applies to products that a.s.r. actively offers, as well as to inactive products. In 2024, the PARP Board assessed 22 reviews (2023: 18) of existing products. The PARP regulation prescribes that products should be reviewed periodically. At a.s.r. this occurs at least every three years for active products, and inactive products are reviewed at least every five years.
In accordance with the assessment framework of the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten – AFM) and in line with legislation and regulations, a.s.r. set up the PARP tests based on interests of customers and society, which relate to matters including cost efficiency, usability, safety, transparency, and several criteria related to sustainability.
In 2024, a.s.r. received feedback from the AFM on two files that have resulted in informal supervisory measures being taken. Where necessary, internal actions have been taken.
In 2024, a.s.r. received no legal and regulatory fines, settlements, and enforcement actions related to incorrect, misleading, or unfair marketing, labelling, and advertising. a.s.r. has not received any reports of violations for non-compliance with statutory labelling and/or marketing codes. One of the marketing campaigns is stopped after receiving comments that the advertisement was not specific enough.
Knowledge sessions were held with PARP stakeholders to enhance the resources available for PARP. Additionally, the scenario analysis was improved with help of an external expert.
Interests of customers
Products and services are assessed against the following criteria:
Cost-effectiveness: an insurance product is cost-efficient if it is perceived by the designated target group as having a good price-quality ratio.
Usefulness: a useful insurance product is one that meets the needs of the designated target group in an appropriate way.
Safety: an insurance product is safe if it delivers what it promises and the possible outcomes are acceptable to the designated target group.
Comprehensibility: a comprehensible insurance product is one whose quality and suitability can be adequately assessed by the intended target group.
Ethical data use: the product is assessed against the Ethical Framework for data-driven applications, which is developed in collaboration with the Dutch Association of Insurers (Verbond van Verzekeraars).
Interests of society
Products and services are assessed on their positive and/or negative impact on society, against the following criteria:
Environmental, social and employment aspects;
Respect for human rights;
Combatting and avoiding bribery and corruption.
The PARP Board can also ask further questions concerning sustainability factors, and these answers are factored into underwriting decisions.
Dilemma - Balancing transparency and conciseness in sustainability communication
a.s.r. aspires to be a leading sustainable employer, insurer and asset manager. It seeks to play a significant role in combatting climate change and accelerating the energy transition. a.s.r. is dependent on the movement and speed of the real economy and the behaviour of investors, clients (or customers) and government policies to help facilitate and speed up the necessary transitions toward a sustainable future.
a.s.r. aims to further increase its efforts to stimulate fairness, sustainability, reliability and social responsibility in society. Topics where the Dutch public have thus far lauded the efforts of a.s.r., as reflected in a.s.r.'s reputation as a sustainable insurer. New and stricter European regulations call for more transparency and substantiation of these efforts, to prevent misleading marketing practices (or greenwashing) and be more detailed in measurable and actionable targets. It's essential to a.s.r. that its sustainability communication is accurate and understandable for a.s.r.'s customers, and that it accurately highlights the long-term value creation strategy for its key stakeholders: customers and intermediaries, employees, shareholders, and society.
New regulations challenge companies to develop a common and consistent language for communicating sustainability efforts in an honest and concrete way. Traditionally, marketing messages have been brief and general in their definitions and wording. This creates new challenges in conveying sincere sustainability efforts concisely, while still including the necessary details and substantiation.
For a.s.r., this entails working on more frequent and critical collaboration between marketing departments, the legal department, the compliance department and the business lines of a.s.r. that provide the data to substantiate its sustainability claims. To find a new, more balanced way to inform its stakeholders of a.s.r.'s efforts to facilitate necessary transitions towards a sustainable future.
Sustainable insurance
a.s.r. strives to achieve positive impact and minimise its negative impact as much as possible with its insurance products and services. a.s.r.’s Policy on Sustainable Insurance sets out how Environmental, Social and Governance (ESG) aspects are integrated into its core insurance processes, such as underwriting, pricing, working processes and product development. The Policy on Sustainable Insurance applies to all business units of a.s.r. that offer insurance products and services.
In 2023, a.s.r. published interim targets for 2030 for its non-life insurance portfolio, which align with achieving a net-zero economy by 2050 or earlier. More information about impacts, targets and metrics please see section 6.2.1 for climate change and 6.2.3 for biodiversity.
Underwriting
The Policy on Sustainable Insurance offers comprehensive guidance on conducting an ESG risk inventory when onboarding new business clients and drafting new contracts. This process aims to ensure informed decisions regarding customer acceptance. The ESG risk inventory complements a.s.r.’s Customer Due Diligence Policy. ESG risks are identified when potential clients appear on a.s.r. asset management’s exclusion list, operate in sensitive sectors (such as gambling, armaments, tobacco, fossil fuels and animal exploitation) or engage in conventional energy products that do not have a transition plan that aligns with the Paris Agreement. If an ESG risk is detected, the sales representative or underwriter will escalate the matter to the Underwriting Committee. This committee will then determine whether to reject the customer based on ESG risks or accept them under specific conditions. In 2024, this was done twice, resulting in one contract not being extended or accepted (2023: 5).
The Policy on Sustainable Insurance was updated in 2024, with a clear distinction between Life and Non-life coverage. For Non-life coverage, which directly supports economic activities of commercial customers, a.s.r. Non-life does not accept producers of thermal coal and unconventional oil and gas products as customers. Additionally, Non-life customers associated with the fossil fuel industry must demonstrate a transition plan that aligns with the goals of the Paris Agreement. ESG risk considerations remain for Non-life clients operating within the fossil fuel industry.
Throughout the contract period, especially during renewals and significant risk adjustments, a.s.r. periodically verifies that the customer continues to meet the risk profile and that transaction patterns align with expectations. In addition to these checks, a.s.r. engages in regular discussions with its customers about sustainability and strategies to mitigate ESG risks, such as in the Council of Action (Raad van Doen).
In addition to discussions with customers, a.s.r. organises knowledge sessions for both intermediaries and underwriters. These sessions are designed to transfer knowledge that relates to a.s.r. products. Topics included sustainability, the integration of Aegon NL, Artificial Intelligence, damage prevention, and road safety. In 2024, many sessions were organised for intermediaries and underwriters.
During the underwriting process, a.s.r. also identifies potential customers who can positively impact sustainability. To support this, a.s.r. has a Sustainability Desk, where insurance advisors can inquire about the insurability of new sustainability initiatives. This approach ensures that new sustainable initiatives are discussed and assessed for their insurability with a.s.r. By acquiring more knowledge about risks, a.s.r. aims to make new sustainable initiatives insurable.
Pricing
Within the framework of its regular pricing policy, a.s.r. focuses on making and keeping sustainability risks insurable and affordable. Sustainability risks, such as those relating to climate change, are explicitly integrated in the pricing process. For instance, the risk analysis for the pricing of non-life products, considers the impact of extreme weather on the cost of claims in the past, present and future.
Working processes
a.s.r. integrates sustainability practices into its operations and processes. For example, where possible, inspections are conducted online, and the volume of printed mail is kept to a minimum. For data-driven applications, a.s.r. uses an ethical framework that is adopted in the form of binding self-regulation devised by the Dutch Association of Insurers. This framework ensures that data-intensive processes, products, services and applications affecting customers take into account ethical criteria such as the customer’s autonomy and privacy, the prevention of exclusion and discrimination, and the incentivisation and monitoring of the insurability of vulnerable groups in society or socially relevant activities.
Products and services with sustainable features
Financial self-reliance and inclusion
Ik denk vooruit (I think ahead): An online tool for customers and non-customers that provides insight into their long-term financial situation and helps people making carefully considered financial choices.
Startershypotheek (Mortgage for starters): To make their housing costs more affordable, new entrants to the housing market can opt for a longer repayment term of up to a maximum of 40 years.
Funeral insurance: For people covered by power of attorney (e.g. individuals with a mental disability). Cover can be organised without unnecessary obstacles and queries relating to health.
Vitality and sustainable employability
a.s.r. Vitality: A well-being program that encourages customers to make healthy choices. a.s.r. Vitality is available to employers with disability or pension insurance and to individual customers with health or disability insurance.
De langer mee AOV (Life Occupational Disability insurance): An occupational disability policy for self-employed people with physically demanding jobs, which includes extra services such as coaching interviews and personal health checks.
De Verzuimontzorgverzekering (Absenteeism insurance): An Absenteeism Relief Insurance supplemented with preventive services to avoid (long-term) sickness, such as the annual prevention check and professional (reintegration) coaching in case of sickness.
Sustainable living and climate
Sustainable and circular repairs: Customers can have damage repaired sustainably by a network of
certified repair companies. If repair is not possible, items can be handed in and replaced by a refurbished or pre-owned equivalent. The percentage of sustainable repair to vehicles increased in 2024 to 77% (2023: 74%). The percentage of sustainable repair of fire damage to property increased to 43% (2023: 38%).
Verduurzamingshypotheek (Sustainability mortgage): Mortgage customers can take out an additional loan to their mortgage at a reduced interest rate to make their home more sustainable.
Sustainable buildings and contents insurance: As part of its home and home contents insurance, a.s.r. covers solar panels, heat pumps and electric charging points, and offers an option to make buildings more sustainable following damage.
Prevention of payment problems
a.s.r. makes considerable efforts to ensure that its customers are financially self-reliant. a.s.r. aims to minimise the number of customer cancellations caused by payment arrears and problems. It works to prevent situations in which customers face cost-increasing measures and to avoid default.
Through the memberships and coalitions mentioned hereafter, a.s.r. shares experience and learns from the experiences of companies in other sectors. This leads to better coordination of customer processes and enables a.s.r. to provide a better customer service.
For some years now, a.s.r. has been part of the Creditors' Coalition (Schuldeiserscoalitie), which works proactively to find solutions for customers with payment arrears.
In 2022 a.s.r. became a member of the Dutch Debt Relief Route (Nederlandse Schuldhulproute - NSR). NSR provides debt assistance through various activities. One of these is Geldfit, a national initiative focusing on effective referral to other financial support organisations at local level. Customers gain insight into their financial situation through a simple online test. This anonymous test offers them targeted help in getting or keeping their finances in order.
In 2024, various business units have made their information provision more accessible to customers with payment arrears, including a reference to Geldfit. Furthermore a.s.r. joined two initiatives aimed at making citizens of the Netherlands free of debt concerns, namely SchuldenlabNL and the National Coalition for Financial Health (Nationale Coalitie Financiële Gezondheid - NCFG). The strength of SchuldenlabNL lies in scaling up successful initiatives, while the NCFG involves employers in the early detection and addressing of financial problems and debts of their employees. After all, as an employer, a.s.r. also has a role in preventing (major) financial worries among its employees.
In order to give customers as much help as possible in preventing or resolving their repayment problems, employees are trained to recognise the financial problems being experienced by customers and to refer them on for advice.