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Studies conducted by the Consumers' Association in 2006 and 2018 have shown that the costs of an average funeral have increased from EUR 5000 - 6000 in 2006 to just under 7000 EUR in 2018. This is an increase of about 30%, which is an average 2,2% annually. 

Much of this increase can be explained by inflation, which was cumulatively 20,6% over this period. Separately, we see that a funeral is increasingly focused on the wishes of the deceased or surviving relatives, as a result of which more extensive funerals are more often chosen, which entails higher costs.

Yarden tries to recover extra costs from policyholders.

Finance Minister Hoekstra writes that he finds it very annoying that a recovery plan has proved necessary for Yarden and that a certain group of policyholders of Yarden as a result, it is faced with a cutback of a package policy. 

As of January 1, 2020, this austerity will take place and the policyholders concerned will have to bear the inflation and purchasing risk themselves (price increases of the agreed package of funeral services). 

The policyholders concerned (approximately 380.000 policies out of 1,4 million policies) are in possession of a package policy that includes a so-called “en-bloc” clause. The application of the relevant clause in this case will result in part of the total package costs being borne by the policyholder.

An insurer covers itself with an “en-bloc” procedure.

An insurer can unilaterally change the policy conditions to the disadvantage of the policyholder, provided that this option is included in the policy conditions, the “en-bloc” clause. However, a restriction of the policy conditions by invoking such a clause can only be made in exceptional cases where all other alternatives have been exhausted. 

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In the event that the insurer makes use of this clause, the policyholder has the right to cancel the insurance contract within 30 days. It is important that the policyholder realizes the existence of such clauses and that an insurer's communication is clear and transparent in such a case.

Minister of Finance Hoekstra has no indications that for many people a dignified funeral has become unaffordable due to the financial problems at Yarden. He informed the House of Representatives today in an answer to the questions asked by the member Van Raak (SP) to the Minister of the Interior and Kingdom Relations about the message that Yarden still charges customers for their funeral.

It is annoying for everyone involved that a financial company such as Yarden has got into trouble and that this has consequences for a certain group of policyholders. It is never entirely possible to prevent financial institutions from getting into trouble. Financial supervision reduces the chance of this.

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