Netherlands Insurance Market Intelligence: 2011 Edition
The insurance industry of the Netherlands, homeland of several top global insurance companies like ING and AEGON, is one of the most open markets in the world. The health and accident insurance business, one of the sub-segments of the non-life insurance segment, constitutes about 46% of the overall insurance market. Both life and non-life insurance segments registered healthy growth by 2008, before declining in the following period as a result of the global economic recession. In 2009, the overall Dutch insurance market witnessed a sharp decline, the downfall mainly contributed by the life insurance segment. The Netherlands government intervened in the financial sector - injected capital in the financial institutions and nationalized the Dutch activities of ABN Amro/Fortis Bank to stem their deteriorating conditions. However, now these institutions are back on track and are repaying the financial aid.
In comparison with the relatively more advanced economies of the world, the insurance market of the Netherlands boasts highest insurance density. The country is unlikely to see growth in the per capita expenditure on insurance in the recent future because of the maturing market, increasing level of unemployment, and rising national population. In the meantime, the rising insurance penetration in the country is mainly contributed by the growing non-life segment. Revenues of the non-life segment are largely contributed by the improved results of health and accident sector.
In comparison with the relatively more advanced economies of the world, the insurance market of the Netherlands boasts highest insurance density. The country is unlikely to see growth in the per capita expenditure on insurance in the recent future because of the maturing market, increasing level of unemployment, and rising national population. In the meantime, the rising insurance penetration in the country is mainly contributed by the growing non-life segment. Revenues of the non-life segment are largely contributed by the improved results of health and accident sector.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Liberal regulatory environment promoting insurance industry
1.1.2 Diversified Distribution channels with number of brokers and agents
1.2.3 Emergence of Health Segment Due to Introduction of Healthcare Reforms
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1Global economic recession resulted in decline in premiums
1.2.1.2 Lower impairment charges and gains on investment increased net income in 2009
1.2.2 Market Segments
1.2.2.1 Non-life insurance dominated the industry
1.2.2.2 Volume of individual life insurance policies contracted sharply in 2009
1.2.2.3 Slight increase in combined ratio in 2009 compared to 2008
1.2.2.4 Health insurer’s premium income grew at a lesser rate in 2009
1.2.3 Market Density & Penetration
1.2.3.1 Mature Market and Rising Unemployment Lead to Slower Growth in Insurance Density and Penetration
1.2.4 Market Share
1.2.4.1 Rise in pricing competition among top players
1.2.4.2 Eureko remained as market leader in overall life insurance market
1.2.4.3 Government injected capital into ING, Aegon and SNS Reaal due to financial trouble
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Aegon: Sale of Dutch Funeral Insurance Business
ING Repaid Bailout Money to Dutch State
Developments in Dutch Health Insurance Segment
2.2 Market Drivers
Growing Economy Fuelling Market Growth
Rising Household and Healthcare Expenditure
Increase in Ageing Population
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slower growth in life insurance premiums due to downturn in consumer’s spending
4.2 Non-life premiums will show modest increase due to rise in main lines of businesses like motor and accident
1.1 Industry Structure
1.1.1 Liberal regulatory environment promoting insurance industry
1.1.2 Diversified Distribution channels with number of brokers and agents
1.2.3 Emergence of Health Segment Due to Introduction of Healthcare Reforms
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1Global economic recession resulted in decline in premiums
1.2.1.2 Lower impairment charges and gains on investment increased net income in 2009
1.2.2 Market Segments
1.2.2.1 Non-life insurance dominated the industry
1.2.2.2 Volume of individual life insurance policies contracted sharply in 2009
1.2.2.3 Slight increase in combined ratio in 2009 compared to 2008
1.2.2.4 Health insurer’s premium income grew at a lesser rate in 2009
1.2.3 Market Density & Penetration
1.2.3.1 Mature Market and Rising Unemployment Lead to Slower Growth in Insurance Density and Penetration
1.2.4 Market Share
1.2.4.1 Rise in pricing competition among top players
1.2.4.2 Eureko remained as market leader in overall life insurance market
1.2.4.3 Government injected capital into ING, Aegon and SNS Reaal due to financial trouble
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Aegon: Sale of Dutch Funeral Insurance Business
ING Repaid Bailout Money to Dutch State
Developments in Dutch Health Insurance Segment
2.2 Market Drivers
Growing Economy Fuelling Market Growth
Rising Household and Healthcare Expenditure
Increase in Ageing Population
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slower growth in life insurance premiums due to downturn in consumer’s spending
4.2 Non-life premiums will show modest increase due to rise in main lines of businesses like motor and accident
LIST OF CHARTS:
Annual Premium – The Netherlands’ Insurance Industry: 2002-2009
The Netherlands Insurance Premium Break-up (%) by Segment - 2009
The Netherlands Insurance Premium (US$) by Segment – 2002-2009
Non-Life Insurance Premium Break-up (%) by Segment – 2009
Health and Accident Insurance Premium (%) by Segment – 2009
The Netherlands Insurance Density (US$): 2002 – 2009
The Netherlands – Insurance Penetration (%): 2002-2009
The Netherlands - Market Share of Insurers – 2008
The Netherlands - Market Share of Life Insurers - 2008
The Netherlands: GDP growth, 2002-2013F
The Netherlands: Healthcare Expenditure, 2003-2009
Netherlands: Ageing population, 2002A-2013F
The Netherlands – Insurance Industry Forecast: 2009A-2013F
The Netherlands: Insurance Industry Segment Forecast, 2009A-2012F
Annual Premium – The Netherlands’ Insurance Industry: 2002-2009
The Netherlands Insurance Premium Break-up (%) by Segment - 2009
The Netherlands Insurance Premium (US$) by Segment – 2002-2009
Non-Life Insurance Premium Break-up (%) by Segment – 2009
Health and Accident Insurance Premium (%) by Segment – 2009
The Netherlands Insurance Density (US$): 2002 – 2009
The Netherlands – Insurance Penetration (%): 2002-2009
The Netherlands - Market Share of Insurers – 2008
The Netherlands - Market Share of Life Insurers - 2008
The Netherlands: GDP growth, 2002-2013F
The Netherlands: Healthcare Expenditure, 2003-2009
Netherlands: Ageing population, 2002A-2013F
The Netherlands – Insurance Industry Forecast: 2009A-2013F
The Netherlands: Insurance Industry Segment Forecast, 2009A-2012F
LIST OF TABLES:
The Netherlands - Key Macroeconomic Indicators: (2009A – 2014F)
The Netherlands - Key Macroeconomic Indicators: (2009A – 2014F)
