Overview 1
Catalyst 1
Summary 1
Executive Summary 2
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% 2
The Dutch life and pensions market experienced negative compound annual growth between 2001 and 2005 2
Accelerated growth in life insurance will produce higher compound annual growth in the total market between 2006 and 2010 2
The market will continue to be shaped by EU legislation as well as national legislation aimed at encouraging long-term savings 2
The market is dominated by Dutch firms 3
The market leaders rely heavily on brokers and other intermediaries for distribution 3
Table of Contents 4
Table of figures 5
Table of tables 6
MARKET OVERVIEW 7
The Dutch life and pensions market experienced negative compound annual growth between 2001 and 2005 7
The Dutch life and pensions market contracted between 2001 and 2005, experiencing a compound annual growth rate of -0.8% 7
Between 2001 and 2005, group policies accounted for 29-34% of premium income 9
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 10
Bonds account for the single highest proportion of the investment assets of life and pensions insurance companies 12
MARKET FORECASTS 15
Accelerated growth in life insurance will produce higher compound annual growth in the total market between 2006 and 2010 15
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 15
MARKET REGULATION 17
The market will continue to be shaped by EU legislation as well as national legislation aimed at encouraging long-term savings 17
The Dutch Central Bank and the Authority for the Financial Markets regulate the insurance sector 17
The new Financial Supervision Act consolidates legislation on the supervision of financial services providers 18
Insurance companies which belong to financial conglomerates face additional supervisory requirements 18
Recent legislation enhances consumer protection 18
Distance marketing rules define sales practices 18
The IORP directive creates new market opportunities 19
Revised tax laws affect sales of pensions products 19
Proposed anti-money laundering legislation implies an additional administrative burden for insurers 19
Solvency 2 legislation will impact insurers' capital requirements 20
Providers may be required to fund a new insurance guarantee scheme 20
COMPETITIVE MARKET STRUCTURE 21
The market is dominated by Dutch firms 21
The market is comprised almost exclusively of domestic life insurance providers 21
The top 5 life and pensions insurers control just over half of the market, by gross premium income 22
Close to three-quarters of premium income was distributed through intermediaries in 2004 23
MARKET LEADERS 25
The market leaders rely heavily on brokers and other intermediaries for distribution 25
Nationale-Nederlanden Leven is the life insurance market leader, based on premium income in 2004 25
AEGON Leven trails the market leader in the life and pensions insurance sector 25
Achmea Pensioen- en Levensverzekeringen ranks third among life insurance companies 25
Delta Lloyd Leven (Delta Lloyd Life) is the fourth highest ranked life insurer by premium income 26
Amev Leven (now Fortis ASR) rounded out the top 5 life insurers as at December 2004 26
APPENDIX 27
Definitions 27
Capital redemption policy / bond 27
Composite insurer 27
Defined contribution pension scheme 27
Defined benefits pension scheme 27
Group policy 27
Individual pension scheme 27
Individual policy 27
Life assurance 27
Occupational pension scheme 28
Pension insurance policy 28
Premium income 28
Regular premium 28
Single premium 28
Technical provisions 28
Traditional insurance 28
Unit-linked insurance 28
Further reading 28
Interactive Databases 28
Reports and Briefs 29
Ask the analyst 30
Datamonitor consulting 30
Disclaimer 30
List of Tables
Table 1: Life and pensions insurance premium income, segmented by product, EURm, 2001-2005 8
Table 2: Life and pensions insurance premium income, segmented by product, in percentages, 2001-2005 8
Table 3: Life and pensions insurance premium income, segmented by buyer, EURm, 2001-2005 9
Table 4: Life and pensions insurance premium income, segmented by buyer, in percentages, 2001-2005 10
Table 5: Life and pensions insurance premium income, segmented by investment risk, EURm, 2001-2005 11
Table 6: Life and pensions insurance premium income, segmented by investment risk, in percentages, 2001-2005 11
Table 7: Investment assets of life and pensions insurance companies, EURm, 2001-2005 13
Table 8: Investment assets of life and pensions insurance companies, in percentages, 2001-2005 13
Table 9: Life and pensions insurance premium income, segmented by product, EURm, 2006-2010 16
Table 10: Life and pensions insurance premium income, segmented by product, in percentages, 2006-2010 16
Table 11: Number of life insurance providers segmented by type, as at Dec 2005 22
Table 12: Top 5 life insurers by gross premium income, as at Dec 2004 23
Table 13: Life insurance gross premium income, segmented by distribution channel, in percentages, Jan-Dec 2004 24
List of Figures
Figure 1: Life premiums accounted for 88% of total premium income in 2005 7
Figure 2: Individual policies account for close to two-thirds of life and pensions premium income 9
Figure 3: Between 2001 and 2005, the market for unit-linked insurance experienced compound annual growth of -1.2% 10
Figure 4: The proportion of investment assets held in mortgages and loans declined sharply between 2001 and 2005 12
Figure 5: Up to 2010, growth will be driven by life insurance, as pensions will account for a declining proportion of premium income 15
Figure 6: Domestic insurers represent 99% of the Dutch life and pensions market by number 21
Figure 7: Nationale-Nederlanden Leven led the Dutch life and pensions sector as at December 2004 22
Figure 8: 26% of gross premium income was attributed to direct sales in 2004 23