Market Guide: Life Insurance and Pensions in the Netherlands 2006

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Following compound annual growth of -0.8% in the last five years, between 2006 and 2010, growth in the Dutch life and pensions market will increase to 9.5%
    • The Dutch life and pensions market experienced negative compound annual growth between 2001 and 2005
    • Accelerated growth in life insurance will produce higher compound annual growth in the total market between 2006 and 2010
    • The market will continue to be shaped by EU legislation as well as national legislation aimed at encouraging long-term savings
    • The market is dominated by Dutch firms
    • The market leaders rely heavily on brokers and other intermediaries for distribution
• Table of Contents
• Table of figures
• Table of tables
• MARKET OVERVIEW
  • The Dutch life and pensions market experienced negative compound annual growth between 2001 and 2005
    • The Dutch life and pensions market contracted between 2001 and 2005, experiencing a compound annual growth rate of -0.8%
    • Between 2001 and 2005, group policies accounted for 29-34% of premium income
    • Apart from a slight decline in unit-linked insurance in 2004, the distribution of premium income between unit-linked and non unit-linked insurance has been largely consistent
    • Bonds account for the single highest proportion of the investment assets of life and pensions insurance companies
• MARKET FORECASTS
  • Accelerated growth in life insurance will produce higher compound annual growth in the total market between 2006 and 2010
    • Over the next 5 years, premium income is set to grow at a compound annual rate of 9.5%, compared to -0.8% growth between 2001 and 2005
• MARKET REGULATION
  • The market will continue to be shaped by EU legislation as well as national legislation aimed at encouraging long-term savings
    • The Dutch Central Bank and the Authority for the Financial Markets regulate the insurance sector
    • The new Financial Supervision Act consolidates legislation on the supervision of financial services providers
    • Insurance companies which belong to financial conglomerates face additional supervisory requirements
    • Recent legislation enhances consumer protection
    • Distance marketing rules define sales practices
    • The IORP directive creates new market opportunities
    • Revised tax laws affect sales of pensions products
    • Proposed anti-money laundering legislation implies an additional administrative burden for insurers
    • Solvency 2 legislation will impact insurers' capital requirements
    • Providers may be required to fund a new insurance guarantee scheme
• COMPETITIVE MARKET STRUCTURE
  • The market is dominated by Dutch firms
    • The market is comprised almost exclusively of domestic life insurance providers
    • The top 5 life and pensions insurers control just over half of the market, by gross premium income
    • Close to three-quarters of premium income was distributed through intermediaries in 2004
• MARKET LEADERS
  • The market leaders rely heavily on brokers and other intermediaries for distribution
    • Nationale-Nederlanden Leven is the life insurance market leader, based on premium income in 2004
    • AEGON Leven trails the market leader in the life and pensions insurance sector
    • Achmea Pensioen- en Levensverzekeringen ranks third among life insurance companies
    • Delta Lloyd Leven (Delta Lloyd Life) is the fourth highest ranked life insurer by premium income
    • Amev Leven (now Fortis ASR) rounded out the top 5 life insurers as at December 2004
• APPENDIX
  • Definitions
    • Capital redemption policy / bond
    • Composite insurer
    • Defined contribution pension scheme
    • Defined benefits pension scheme
    • Group policy
    • Individual pension scheme
    • Individual policy
    • Life assurance
    • Occupational pension scheme
    • Pension insurance policy
    • Premium income
    • Regular premium
    • Single premium
    • Technical provisions
    • Traditional insurance
    • Unit-linked insurance
  • Further reading
    • Interactive Databases
    • Reports and Briefs
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Life and pensions insurance premium income, segmented by product, EURm, 2001-2005
    • Table 2: Life and pensions insurance premium income, segmented by product, in percentages, 2001-2005
    • Table 3: Life and pensions insurance premium income, segmented by buyer, EURm, 2001-2005
    • Table 4: Life and pensions insurance premium income, segmented by buyer, in percentages, 2001-2005
    • Table 5: Life and pensions insurance premium income, segmented by investment risk, EURm, 2001-2005
    • Table 6: Life and pensions insurance premium income, segmented by investment risk, in percentages, 2001-2005
    • Table 7: Investment assets of life and pensions insurance companies, EURm, 2001-2005
    • Table 8: Investment assets of life and pensions insurance companies, in percentages, 2001-2005
    • Table 9: Life and pensions insurance premium income, segmented by product, EURm, 2006-2010
    • Table 10: Life and pensions insurance premium income, segmented by product, in percentages, 2006-2010
    • Table 11: Number of life insurance providers segmented by type, as at Dec 2005
    • Table 12: Top 5 life insurers by gross premium income, as at Dec 2004
    • Table 13: Life insurance gross premium income, segmented by distribution channel, in percentages, Jan-Dec 2004
  • List of Figures
    • Figure 1: Life premiums accounted for 88% of total premium income in 2005
    • Figure 2: Individual policies account for close to two-thirds of life and pensions premium income
    • Figure 3: Between 2001 and 2005, the market for unit-linked insurance experienced compound annual growth of -1.2%
    • Figure 4: The proportion of investment assets held in mortgages and loans declined sharply between 2001 and 2005
    • Figure 5: Up to 2010, growth will be driven by life insurance, as pensions will account for a declining proportion of premium income
    • Figure 6: Domestic insurers represent 99% of the Dutch life and pensions market by number
    • Figure 7: Nationale-Nederlanden Leven led the Dutch life and pensions sector as at December 2004
    • Figure 8: 26% of gross premium income was attributed to direct sales in 2004