Renewal of insurance cancellation rules: how does this affect you?

On 9 October 2023, a new legislation was passed that simplifies the cancellation rules for insurance contracts. From 1 October 2024, this new legislation will enter into force. In this blog post, we will discuss what these changes mean and how they may affect your insurance portfolio.

What is changing?

The new legislation brings some important changes. The most notable are the shortening of the notice period for cancelling policies by the expiry date and the right to cancel policies at any time.

Shortened cancellation period

Until now, policyholders could cancel an insurance policy up to three months before the expiry date. After 1 October 2024, this period will change to two months. This means that you can cancel your policy up to two months before the annual due date. For the insurer, the three-month deadline will continue to apply for some policies, such as corporate liability insurance. For legal expenses, whether this is a separate policy or a guarantee in an inclusion agreement, a two-month notice period always applies.

Cancellation at any time

A new addition is the right for policyholders to cancel their policy at any time, albeit under certain conditions:

• The policy must run for at least one year.
• The policy must cover consumers. This means that only private risks are covered. 

When these conditions are met, the policyholder can cancel the policy at any time. If this right is exercised, the cancellation is effective after two months from the date of notification or submission of the registered mail.

It is important to note that the policyholder must be reminded of this right at each premium due date. In addition, the customer has the right to ask his broker to take the necessary steps for the cancellation, who is thereby obliged to respond to it.

Attention: the new legislation does not immediately apply to current insurance policies yet

As mentioned earlier, the new cancellation legislation will take effect on 1 October 2024. However, there is a catch. The legislation only applies to contracts entered into or tacitly renewed from that date. This means that if an agreement, for example, is concluded in August 2024 with a commencement date and expiry date in November 2024, it will only fall under the new legislation from November 2025. Since the agreement was concluded before 1 October 2024, it will not be subject to the new rules until the first tacit renewal in November 2025.

We will inform and help you with any change

With all these exceptions, this new, simplified legislation suddenly becomes quite complex. Fortunately, we closely monitor the changes and implications and make sure you stay informed about any consequences for your insurance portfolio. On top of that, you can simply contact us if you would like to terminate an insurance contract: we will let you know what the options are and take care of everything!

Need advice on a specific insurance policy or have any other questions? Discover our private and professional insurance policies or contact us! We will be happy to help you.