Property Insurance is Largest Category in Non-Life Insurance Segment in the Netherlands, According to Timetric22 Aug 2012 • by Natalie Aster
The Netherlands non-life insurance segment is highly fragmented and competitive with the presence of more than 174 insurers supplying a variety of products. Due to the impact of the global financial crisis the non-life segment’s growth was almost stagnant during 2008–2010. Price competition is so intensive that in 2011, the Dutch Central Bank (DNB) issued a warning to a number of insurers because premiums were set too low, which posed a threat to firm’s financial position. The 10-leading non-life insurers accounted for around 63% of the segment’s overall gross written premiums in 2011.
The main categories in the segment are property and motor insurance. Non-life products are distributed through a variety of channels, of which, direct marketing accounted for the largest share of 30.3% of the total commission earned in 2011. As economic conditions improve and the property market stabilizes over the forecast period (2012–2016), the segment is projected to grow at a CAGR of 1.8%.
The new report "Non-Life Insurance in the Netherlands, Key Trends and Opportunities to 2016" by Timetric states that property insurance is the largest category in the non-life insurance segment, accounting for a market share of 48.6% of the total gross written premiums in 2011. According to the Dutch Construction and Infrastructure Federation (Bouwend Nederland), annual construction output should average 75,000 housing completions annually in order to meet the nation’s demand. Also, according to the existing homes indicator of Statistics Netherlands/Land Registry, house prices declined by 1% during the first quarter of 2012 on a quarterly basis. As economic conditions improve, consumer purchasing power and borrowing capacity will rise, a situation which will support the growth of non-life insurance segment.
Non-Life Insurance in the Netherlands, Key Trends and Opportunities to 2016
Published: August, 2012
Price: US$ 1.950,00
According to the Dutch central bank there were 247 non-life insurance companies in 2007, this number declined to 174 in 2012. Due to the implementation of Solvency II legislation, the Dutch non-life insurance segment is expected to experience further consolidation with an increase in merger and acquisition (M&A) activity over the forecast period. Many smaller insurers will not able to restore their balance sheets following the global financial crisis and subsequent European debt crisis, and therefore will look to merge with larger firms.
More information can be found in the report “Non-Life Insurance in the Netherlands, Key Trends and Opportunities to 2016” by Timetric.
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