AMSTERDAM, June 23 (Reuters) - Dutch insurer NN Group must compensate one of its customers for failing to adequately inform them about important aspects of an investment insurance product that was widely sold in the 1990s and 2000s, the country’s financial products watchdog said on Friday.
The Complaint Institute for Financial Services (KiFid) said in a binding appeals ruling that NN Group must compensate the customer for money lost on the 1997 policy as a result, and invited both sides to present estimates.
NN Group and other Dutch insurers have been dealing with issues related to these insurance policies, popularly known as “woekerpolissen” for years. The common theme is that customers were not informed how much of their premiums went to actual investments, and how much went to cover insurers’ costs.
Lawyers for consumer groups have estimated that compensation could run billions of euros.
NN Group said the KiFid decision contradicted a 2015 ruling by the European Court of Justice.
But the insurer also said: “Given that the appeals ruling is binding, in this individual case, NN will abide by the ruling.”
“The ruling changes nothing in NN’s standpoint that the financial consequences of the investment insurance dossier cannot reliably be estimated or quantified,” it said.
NN Group shares, which had opened slightly higher, fell more than 3 percent after the ruling was announced. ($1 = 0.8938 euros) (Reporting by Toby Sterling. Editing by Jane Merriman)