Specifically, Switch employees signed expensive insurance contracts without really saying so, and customers didn’t realize it until a few months later after a free period. Following its inspections, the FSMA banned Switch from marketing insurance products in Belgium. The brand has now disappeared and the stores have been partially taken over by Lab9 Stores.
At the same time, legislative work to prevent this practice from taking place resulted in a Royal Decree, co-signed by Secretary of State De Bleeker and Ministers Demargne and Van Peteghem. The general principles of insurance are not questioned, but it is now prohibited to offer offers that start with a free period. “From now on, the periodic premiums must be equal and spread equally over the term of the contract. Teasers and growing bounty payouts will no longer be possible“, specifies the Foreign Minister’s office.