In reinsurance, the reinsurer takes over certain risks (such as the mortality risk) from an insurer. Reinsurance is essentially different from life insurance, non-life insurance and funeral expenses and benefits in-kind insurance because reinsurance is affected between professional parties. The difference lies in the fact that the reinsurer does not have any straight contractual affiliation with the original policyholder (consumer) but solely with an insurer or pension fund. Because of this difference and in connection with the licensing requirement ensuing from the legislation, reinsurers are included separately in the register. In terms of written premium, the Netherlands Insurance industry is one of the global leaders of the world. The nation’s reinsurance industry experienced a negative growth due to the adverse effect of the global financial crisis and subsequent European debt crisis from 2008 to 2012. Overall, the premium ceded to reinsurance recorded a low compounded annual growth rate. According to the research report “Reinsurance in the Netherlands, Key Trends and Opportunities to 2020“, life, personal accidents and health insurance segments held retentions above 90% indication an underutilisation of reinsurance as a risk management tool. Moreover, the non life insurance, which previously displayed a reliance on reinsurers for sharing risk, recorded a decline in the percentage of premium ceded by about three percentage points in 2012. This was due to intense competition in the segment, which forced non-life insurers to reduce premiums.
A period of severe summer storms in the Netherlands, which brought high winds, torrential rain and large hail to the region, is expected to result in more than EUR500m of insurance industry losses, with reinsurance capital expected to take a major share. Insurance losses from damage to residential property, automobiles is estimated at EUR325m, 40% of which is related to homes, while EUR175m is largely from agricultural businesses, but the commercial toll is expected to rise further. This is certainly not a major loss for the industry, in the overall scheme of things, but when added to severe weather in France, Germany and other European areas, the losses will be taking their toll on some reinsurers with a focus on Europe. With reinsurance rates extremely low in Europe for property catastrophe cover, ILS participation is likely to be low, as often the returns do not meet their targets.
Growth in the Dutch reinsurance segment was variable, and affected by demand trends in the insurance industry. The Netherland’s reinsurance segment contains both domestic and foreign reinsurers. The segment is not highly competitive such as the non-life and life segment. Solvency II law, implemented on January 1, 2016, was a basic reform of capital adequacy requirements and risk management. It has created a level playing field across European insurers, improved protection offered to policyholders and enhanced transparency and quality of public disclosure. Reinsurance providers in the Netherlands initially covered only commercial and industrial risks. Insurers such as Nationale-Nederlanden, the Dutch unit of NN Group NV, and Aegon have recently begun analyzing risk models, and have put forward proposals to cover flood-affected properties. Effective from April 1, 2015, the European Insurance and Occupational Pensions. Authority (EIOPA) issued guidelines on the application of outward reinsurance arrangements to the non-life catastrophe risks.
Most of the reinsurance companies operate from Switzerland, Germany,Bermuda and regional financial hubs from London,Singapore, Dubai,Malaysia,Russia. ING Re (Netherlands) NV, ABN AMRO Captive NV, Achmea Reinsurance Company NV, Unive Her NV, Rabo Herverzekeringsmaatschappij NV, Global Re NV, Nationale-Nederlanden and Metro Reinsurance NV are leading reinsurance providers.
Topics Covered in The Report
- Reinsurance in the Netherlands Market Research Report
- Reinsurance in the Netherlands Market Size
- Reinsurance in the Netherlands Market
- Reinsurance in the Netherlands Gross Written Premium
- Reinsurance in the Netherlands Market Future Outlook
- Reinsurance in the Netherlands Market competition
- Netherlands insurance industry research
- Europe insurance industry research
- Netherlands insurance industry regulations
- Netherlands insurance Market Growth
- Netherlands insurance Market trends
- Netherlands insurance Market share
- Reinsurance in the Netherlands Market Future
- Reinsurance in the Netherlands Market analysis
For further reading click on the link below:
Reinsurance in Hong Kong, Key Trends and Opportunities to 2020
Timetric | Page 43 | May 2017
Ankur Gupta, Head Marketing & Communications