See II.2.4
The purpose of this Framework Agreement is to designate, for a period of 4 years, two insurers offering outstanding balance insurance services (hereinafter: ASRD) in the field of mortgage lending (mandatory ASRD) and installment loan (optional ASRD).
These outstanding balance insurance services will be provided to SWCS borrowing clients.
The purpose of the framework agreement is also to define the framework within which the two designated insurers compete again for the award of subsequent contracts, i.e. mortgage or installment loans granted by the SWCS.
For these subsequent markets, the SWCS will offer its borrowing clients the option to purchase their outstanding balance insurance policy with that of the two designated insurers offering the most advantageous insurance.
This is a framework agreement that has been passed through an open procedure.
Subsequent contracts are service contracts for outstanding balance insurance services. This is a balance insurance remaining due in the strict sense, in which the risk covered is only the death of the insured.
The reopening of competition for the award of each subsequent contract takes place by means of a simulation carried out on the basis of the electronic platforms provided by the designated insurers (see below: Article 3 of Title IV. Technical specifications).
The award and execution of subsequent contracts is managed by the SWCS on behalf of its own clients.
In this context, the SWCS acts as an “unrelated agent”.
Strictly for information purposes and without this generating any right on the part of the bidders, it should be noted that in 2021, the mortgage loans granted by the SWCS agency for which the borrowers had to take out outstanding balance insurance, totaled an amount of around EUR 3.2 million. The premiums paid to insurers under outstanding balance insurance policies taken out for these loans amounted to an amount of around EUR 150.000
However, the SWCS has strengthened its agency and aims to increase its production. Thus, it hopes to be able to achieve an annual production of around EUR 30 million.