The acquisition was announced last year. In addition to one million extra insured, Dela would also get hold of dozens of funeral homes and crematoriums.
For Dela it was important that Yarden got the finances in order. The funeral insurance company has been in financial difficulties for some time and does not seem to be able to resolve it for the time being.
The reason for this lies in the in-kind policies that Yarden took over from insurers AVVL and NUVA in 2001. For years, Yarden paid for everything related to the funeral with these policies. Customers paid a fixed premium for this.
But this method cost the company a lot of money, making the financial buffers alarmingly low.
To solve this problem, Yarden set the value of the in-kind or package policy at a fixed amount as of 1 January 2020. If the costs for, for example, the box increase, the insured person must pay extra himself. That extra amount can amount to about 700 euros.
Yarden’s decision caused a lot of commotion and unrest among the policyholders. Some of them went to court and they were in the right for the time being.
The interests of the members come first
And that is now reason for Dela to abandon the takeover. “It may take years before the legality is legally tested,” says the funeral home. “Dela has decided not to wait for this uncertain development.”
“As a non-profit cooperative, we must put the interests of our members first,” explains Dela director Edzo Doeve on the website. “And that is exactly what we are doing now, because the uncertainty at Yarden is not in the interest of our members.”
*The article has been translated based on the content of Source link by https://www.rtlnieuws.nl/economie/bedrijven/artikel/5186924/dela-yarden-overname-afzien-cooperatie-financieel-gezond
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