Debt Collection for Insurers and Managing General Agents

In the insurance industry, strict legal requirements must be met before coverage can be suspended or terminated due to nonpayment. Furthermore, insurance services are exempt from VAT, which has direct implications for statutory collection costs.

At Credifin, we integrate seamlessly with the accounts receivable management systems of insurance companies and authorized agencies. We monitor the statutory collection deadlines and combine decisive action with customer retention.

The specific challenges facing insurers and authorized agents:

• Strict legal requirements (Art. 7:934 of the Dutch Civil Code & WIK): To suspend coverage and charge collection fees to consumers, a legally sound 14-day notice must be issued after the default occurs.
• High volumes & recurring term premiums: Monthly and quarterly premiums require automated tracking without manual data entry.
• Retaining Valuable Policyholders: A failed direct debit (reversal) is often caused by a temporary inability to pay or a change in account number; a direct iDEAL payment link resolves this immediately in most cases.

Credifin supports property and casualty insurers, health insurers, life insurers, authorized agents (NVGA), and provincial intermediaries in three key stages of the collections process:

• 1. Premium Collection (B2B & B2C): Fast and customer-friendly follow-up on canceled or unpaid insurance premiums. Policyholders pay directly via iDEAL or QR code, or set up a verified payment plan online.
• 2. Collection of outstanding deductibles and copayments: Socially responsible collection with early detection of debt issues and clear communication at the B1 language level.
• 3. Recourse Claims & Recovery Cases: Decisive recovery from liable counterparties, uninsured parties responsible for the damage, or fraudsters, including aggressive legal collection and seizure when out-of-court negotiations are insufficient.

Do you work with insurance packages such as ANVA, CCS, DIAS, Novulo, or a custom policy management system? Through our free API integration and webhooks, we exchange files and payment statuses in a fully automated process.

Here’s what automation can do for your insurance company right away:

• Automatic feedback on coverage status: As soon as a policyholder makes a payment to Credifin via iDEAL, our webhook immediately sends a notification to your system so that a coverage suspension can be automatically lifted.
• Real-time insight into our 24/7 online web portal: Your credit managers can see exactly which letters, emails, text message reminders, and phone calls have taken place for each case.
• Full GDPR & Wft compliance: Secure data exchange within the EEA and strict segregation of funds through our Third-Party Funds Foundation.

A major financial and legal advantage for insurers and insurance brokers: because insurance transactions are exempt from VAT under the Value-Added Tax Act, as an insurer, you cannot claim a refund of the VAT on our collection fee from the tax authorities.

In accordance with Article 2, paragraph 3, of the Decree on Compensation for Extrajudicial Collection Costs (BIK), Credifin adds 21% VAT to the statutory collection costs in both the 14-day notice (WIK letter) and the collection process:

• As a result, the statutory minimum collection fee will increase from €40 to €48.40.
• The full statutory collection penalty schedule will also be increased by 21% and recovered from the debtor.
• If a claim is collected in full , the collection process will cost your insurance company or authorized agency a net amount of €0.

At Credifin, we operate on a 100% “No Cure, No Pay” basis throughout the entire out-of-court collection process. In as many as 94% of cases, we secure payment without court intervention, with an average turnaround time of 14 days until the first payment is received.

What if payment is still not made under a commercial policy or in the case of a large recourse claim? In that case, our attorneys and bailiffs will provide you with transparent advice in advance regarding the feasibility and costs of legal proceedings, including a preliminary check of the debtor’s solvency and recovery prospects.