Dutch insurer Aegon has concluded a final agreement about compensating people who took out investment policies – known as ‘shark’ or profiteering policies - with the company prior to 1 January 2008. The ANP news agency is reporting that Aegon will now earmark a maximum amount of 250 million euros to cushion the negative impact of the policies - 110 million euros more than the company originally said it would use for this purpose.

These ‘shark’ policies (Dutch: woekerpolissen) - marketed by various insurance and other financial services companies in the Netherlands - were taken out by millions of people, who later discovered that much of the money they invested was going to cover commission and other administrative costs, and therefore not being added to their investment. This also meant that people faced the prospect of their policies possibly yielding less when they matured than they had actually invested.

Two groups, representing the interests of people who have lost out with this type of investment, say they will issue a positive recommendation to their members about the Aegon deal.

Aegon is the fifth of the six large insurance companies which marketed these policies to finalise a compensation scheme with affected policyholders.

photo: Aegon advertisement in Leeuwarden, Friesland by Sint Smeding on Flickr