Dutch insurance market reaches saturation point

amsterdam2

The Dutch insurance market is saturated and has become highly competitive, according to a new report.

"Insurers in the Netherlands were hit hard by the global financial crisis, with most of the largest insurers forced to take state aid or accept support from majority shareholders," said Ella Spencer, analyst in Fitch's insurance team, which produced the report.

She added: "Although the industry has survived the crisis, severe pricing pressure is threatening profitability for life and pension providers, driving companies to cut costs and, in some cases, withdraw from the market."

The report found the life market is also suffering from tax changes that have allowed banks to compete on equal terms with insurers in the savings market. The effect is exacerbated by a slump in insurers' products sold through banks, as banks are increasingly pushing their own saving products.

However, the unique healthcare insurance system in the Netherlands shields insurers from the underwriting risks normally associated with health insurance.

"The Netherlands has the largest private health insurance market in Europe, with annual premiums of around €40bn," explained Ms Spencer. "However, most of this insurance is, in effect, underwritten by the Dutch government, with insurers covering a lot of the administration associated with healthcare but taking on very little risk."

Indications from the fifth Quantitative Impact Study show that, overall, Dutch insurers look set be well capitalised under Solvency II. However, the industry continues to lobby for less-onerous risk charges for health insurance, believing that the Solvency II calibrations do not reflect the risk-mitigating features of the Dutch system.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@postonline.co.uk or view our subscription options here: http://subscriptions.postonline.co.uk/subscribe

You are currently unable to copy this content. Please contact info@postonline.co.uk to find out more.

Government to consult on leasehold commission ban

In a written statement published yesterday, the Minister of State for Housing, Communities and Local Government has said the government “will go out to consultation very shortly on the detail of the Act’s ban on buildings insurance remuneration”.

Diary of an Insurer: Clear’s Claire Thompson

Claire Thompson, senior corporate account handler and hybrid account executive in the broking and sales team at Clear Doncaster, walks her Springer Spaniel, tackles CrossFit plus prepares for being a full-time account executive.

Big Interview: Clarissa Franks, Lockton

Clarissa Franks, head of UK retail for Lockton, speaks to Scott McGee about her first year at the broker, the joy of not being “tied up in numbers and margin”, and shares how her team is “doubling down” to achieve growth.

Most read articles loading...

You need to sign in to use this feature. If you don’t have an Insurance Post account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here