Market Research Report Life insurance sector trends Netherlands,Netherlan

Low Returns a Threat to Life Insurance in Netherlands- Ken Research
Life insurance in Netherlands is facing concerns because of a decline in premium income and
weak profitability. However, insurers' strong capitalisation and low investment risk is
expected help them to absorb the pressures they face in next few years.
Netherlands has one of the largest pension savings in the world and because of it the savings
at Dutch life insurers is relatively low compared to other European countries. In the
Netherlands, only 2.9% of the Gross Domestic Product (GDP) is spent on life insurance.
Roughly 9% of all household savings is allocated to life insurers. This capital is equal to €150
BN and is being managed and invested by insurers, who employ a total of more than 50,000
people in the Netherlands
Dutch Central Bank (DNB) came out with a report on “Vision for the future of the Dutch
Insurance Sector” where it pointed out that insurance ought to make fundamental choices (ex
– investing in technology, going global, mergers & acquisitions) in order to protect the
financially solid insurance sector due to the low rates of interest rate, competition in the
insurance market and innovative technologies. Life insurers were found to be particularly
vulnerable to the low interest rate environment due to their long-term commitments. It is
recommended that life insurance companies should limit their capacity and secure the long-
term interest of their policyholders by adopting their operations to the shrinking portfolio, as