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.

If we can be of any assistance or if you have any questions regarding the above. or other financial regulatory matters, please reach out to our Financial Regulatory team.