There are multiple criteria that play a role in determining whether we are prepared to insure a particular risk, what we are prepared to insure it against, and what the premium will be. Based on these segmentation criteria, we try to find a balance between the premium you pay and the loss or damage we anticipate. The segmentation criteria are objective criteria that can influence the probability or extent of loss or damage. In accordance with Section 45 of the Insurance Act, on 1 November 2014 we will publish the segmentation criteria we use for accepting, pricing and/or determining the scope of the cover. Please find below an explanation of the segmentation criteria we apply. For which insurance policies can you find information on segmentation (Section 43 of the Insurance Act)? 1 Compulsory third-party liability insurance for vehicles 2 Insurance against fire and other risks in respect of homes that constitute an ordinary risk in accordance with Article 5 of the Royal Decree of 31 December 1992 implementing the Act of 25 June 1992 on non-marine insurance contracts 3 Insurance covering non-contractual third-party liability in the private sphere 4 Legal assistance insurance 5 Individual life insurance 6 Health insurance 1 Compulsory third-party liability insurance for vehicles This refers to KBC Vehicle Insurance (passenger cars, light goods vehicles, mopeds and motorcycles). Vehicle specifications We take into account the specifications of the vehicle, as they can be a determining factor in the probability and extent of a claim event. For instance, a vehicle s horsepower determines its acceleration and maximum speed. Powerful vehicles are more frequently involved in accidents and, when they are, cause more serious damage than less powerful vehicles. All-terrain vehicles in particular often cause more serious damage when they cause an accident. Use of the vehicle Whenever you get behind the wheel, you run the risk of being involved in an accident. Long-distance and frequent drivers expose themselves to this risk increasingly over time. We therefore take into account factors that reflect the intensity of vehicle usage. For the same reason, we also distinguish between private use (if applicable, including commuting) and professional use. Furthermore, this distinction is important, because it indicates when you use your vehicle most, i.e. during traffic peaks or at less busy times. Place of residence Because accidents are more common in areas where roads are busy, the place of residence is an important criterion.
Drivers ages Statistically, the older the driver, the fewer and less serious the accidents. By contrast, from a certain age the number of accidents increases due to a deterioration in locomotion, eyesight, hearing and reactions as part of the ageing process. We therefore assess the suitability (including medical) for driving of people aged 75 and older who want to take out insurance with us. We take account of this criterion for the acceptance, the pricing and the scope of the cover. Proven driving proficiency Drivers who pay attention when driving and anticipate the driving behaviour of other road users possess a high level of driving proficiency, enabling them to avoid accidents. Driving proficiency can, amongst other things, be demonstrated by a driver s claims history. The specified criteria are not mutually exclusive; they either exacerbate or mitigate one another. For instance, a young, by definition, inexperienced driver, driving a powerful car will have a greater effect on the premium than it would in the case of someone aged 50, for instance. 2 Insurance against fire and other risks in respect of homes constituting an ordinary risk This refers to KBC Home Insurance. We apply the following criteria only if they are relevant to the risk you wish to ensure. The specified criteria for the pricing are not mutually exclusive; they either exacerbate or mitigate one another. Location of the home Homes in the vicinity of a river, or in a valley, are much more susceptible to floods. The flood risk is determined based on maps of the regional authorities and the Royal Decree of 28 February 2007 on areas at high risk of flooding. We take account of this criterion for the pricing and the scope of the cover. Adjacency of the home to other properties The risk of theft is determined by whether the property is attached or detached. Wary neighbours and neighbourhood watch schemes make terraced houses less attractive to thieves. A semi-detached or terraced house increases the probability of damage being caused to third parties when building work is being carried out. Capacity in which we provide insurance The capacity in which we provide you as an owner, tenant or landlord with insurance determines the scope of the cover (e.g., basis for compensation; whether liability is covered; only contents, or also the building). Security of the home Homes which are not permanently occupied are an easier target for thieves. In other words, the degree of occupation is a determining factor of your home s susceptibility to theft. The extent to which your home is secured is also important. Unsecured or poorly secured homes are more appealing to thieves. This applies in particular to homes that are not permanently occupied.
Claims history We take into account any past flood or water damage in order to determine whether we can provide insurance, and subject to what conditions. We take account of this criterion for the acceptance, the pricing and the scope of the cover. The specifications of the home and contents We take into account the value of your home contents in order to, for instance, be able to impose preventive measures. The more expensive items there are in the home, the more appealing it is to thieves, and the greater the loss in the event of theft. The building materials used and quality of finishing influence the risk of fire and the compensation amount. Condition of the buildings For instance, we do not wish to insure buildings that are already dilapidated or those that are to be demolished or have already been partly demolished. 3 Insurance covering non-contractual third-party liability in the private sphere We take account of the following criteria for the pricing. With KBC Family Insurance we take into account the composition of the group of people being insured. According to the law, you are not only responsible for your own acts, but in some cases also for the errors of others, such as your minor children. Sometimes we provide you with a specific type of insurance for certain risks in the private sphere. Then, depending on the risk, we may require additional information from you, such as: For KBC Horse Insurance, we will ask how many horses you own and what you use them for. That activity is also used to determine the scope of the cover. In the case of KBC Pleasure Craft Insurance, certain specifications of the vessel such as its type, horsepower and length are relevant. The reason for this is that the larger and more powerful the vessel, the more difficult it is to sail, and the greater the probability of an accident, serious or otherwise. The length of the vessel is also a criterion for the acceptance. For KBC Event Insurance, we not only want to know how many people we are insuring, but also the nature and scale of the event. This is because, statistically, the probability of injury or damage is greater in the case of large-scale, high-risk activities. The type of event is also a criterion for the acceptance. 4 Legal assistance insurance We take account of the following criteria for the pricing. With KBC Family Insurance we take into account the composition of the group of people being insured. The larger the group, the greater the probability that we will have to provide legal assistance and advice. If you only require legal assistance and advice for a single risk, we may be able to provide you with specific insurance for this purpose. Depending on the risk, we may then require additional information from you, such as: For KBC Horse Insurance, we will ask how many horses you own and what you use them for. That activity is also used to determine the scope of the cover. In the case of KBC Pleasure Craft Insurance, certain specifications of the vessel such as its type, horsepower and length are relevant. The reason for this is that the larger and more powerful the vessel, the more difficult it is to sail, and the greater the probability of an accident, serious or otherwise. The length of the vessel is also a criterion for the acceptance.
For KBC Event Insurance, we not only want to know how many people we are insuring, but also the nature and scale of the event. This is because you are more likely to require legal assistance and advice in the case of large-scale, high-risk activities. The type of event is also a criterion for the acceptance. 5 Individual life insurance We take account of the following criteria for the acceptance, the pricing and the scope of the cover. The specified criteria are not mutually exclusive; they either exacerbate or mitigate one another. Age Your age is an important factor when you take out life insurance, because, statistically, the probability of death increases with age. State of health We will assess your state of health based on a list of medical questions. If, when you take out the insurance, you have already been diagnosed with health issues that could make you more likely to die prematurely, we will take this into account. If the list of questions provides us with insufficient information on the state of your health, we may also ask you to undergo a medical examination. Risk-increasing behaviour or activities In light of the fact that tobacco damages your health and increases the risk of death, we want to know if you are a smoker or ex-smoker. High-risk professions (e.g., soldier, stunt person, bodyguard) increase the probability of early death. Place of residence: Any individual officially residing in Belgium can take out an individual life insurance policy with us. The range of products might be more restricted for people residing outside Belgium either because KBC does not have the authorisation required to provide cover to people outside the country or a certain type of life insurance policy is not advisable for legal or tax reasons. 6 Health insurance (hospitalisation insurance) We take account of the following criteria for the acceptance, the pricing and the scope of the cover. The specified criteria are not mutually exclusive; they either exacerbate or mitigate one another. Age Statistically, the risk of hospitalisation is largely determined by age. State of health We will assess your state of health using a list of medical questions. If, when you take out the policy, you have already been diagnosed with health issues that could make you more likely to be admitted to hospital, we will take this into account. If the list of questions provides us with insufficient information on your state of health, we may also ask you to undergo a medical examination. Risk-increasing behaviour or activities In light of the fact that tobacco damages your health and increases the risk of hospitalisation, we want to know if you are a smoker or ex-smoker. High-risk professions (e.g., soldier, stunt person, bodyguard) increase the probability of you being admitted to hospital.
Place of residence To be able to take out health insurance, the policyholder must have their official or actual place of resident in Belgium, because KBC is not authorised to underwrite this type of insurance for people residing outside the country. Social security status You must be registered for Belgian social security to be able to take out this insurance, since the cover we provide supplements that provided under the Belgian social security system. Registered office: KBC Insurance NV, Professor Roger Van Overstraetenplein 2, 3000 Leuven, Belgium. VAT BE 0403.552.563, RLP Leuven. IBAN BE43 7300 0420 0601, BIC KREDBEBB. Company authorised for all classes of insurance under code 0014 (Royal Decree of 4 July 1979, Belgian Official Gazette of 14 July 1979) by the National Bank of Belgium, de Berlaimontlaan 14, 1000 Brussels, Belgium. Member of the KBC group July 2015