International players and pan-European ambitions in the Dutch insurance market
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While protectionism is emerging in Europe and the United States, the insurance market is experiencing the opposite phenomenon: internationalization. Both intermediaries and insurers are looking across borders for new prospects, creating both opportunities and threats for Dutch players and their customers.
Internationalization of intermediaries
The Dutch intermediary insurance market is currently in a third wave of acquisitions. Rick Verweij, Manager Insurance at IG&H: "After waves of private equity-backed takeovers and the growth of consolidators, we now see large international brokers with Pan-European ambitions entering the Dutch market." The market share of international players has even grown to 20% by now at the intermediary commercial market. These parties are investing in further acquisitions within the Netherlands, viewing the Netherlands as a launchpad for European growth.
International intermediaries primarily focus on the commercial market, leaving opportunities for Dutch intermediaries to focus on niches such as disability and income, or leverage their local networks and targeted customer service. At the same time, competition from international brokers poses a threat because of their economies of scale, extensive expertise, and broad networks of risk carriers, which Dutch intermediaries may not have or not to the same extent.
Internationalization of insurers
Although large-scale takeovers of Dutch insurers by foreign parties are rare, foreign players continue to strengthen their position through the relatively easy-to-enter and attractive co-insurance and MGA channels. Additionally, foreign insurers have a different or higher risk appetite, allowing them to serve a larger part of the market.
National insurers can – like intermediaries – address internationalization by focusing on target groups (industries or niches), local propositions and tailored service offerings. A focus on the retail market can also be beneficial, given that foreign parties primarily focus on the commercial market. At the same time, the competitive position of national insurers is weakened by the internationalization of intermediaries, who seek partnerships with international risk carriers. This allows customers to be served more easily across borders.
Reverse movement: Dutch players abroad
Dutch intermediaries and insurers are also leveraging internationalization for growth. Companies like Alpina and Yellow Hive are expanding to Belgium and Germany, while NN is moving into Germany through the underwriting channel, and Achmea is actively exploring beyond Dutch borders.
Looking forward
In summary, the insurance market is breaking down borders while protectionism is rising worldwide. Jan Pieter van der Helm, Managing Director at IG&H: ""It is evident that internationalization in the Non-Life insurance market will continue in the upcoming years. This presents opportunities for all parties involved: insurers, intermediaries and customers. International economies of scale enable sharper rates, better solutions and international customer service. Further digitalization and successful integration of acquired parties are crucial. For established players, this means that flexibility, scalability and clear choices between local specialization or international broadening will be crucial to remain relevant."
And for the customer? If insurers and intermediaries fulfill the mentioned success factors, the international customer will benefit from services that better align with the character of their organizations. The local customer will receive more attention from specialized local players. Both customers may soon be stronger than ever in an increasingly dynamic insurance market.
Do you want to learn more about internationalization among intermediaries and insurers?
Download the full white paper and discover more details, opportunities and threats in the market (the white paper is in Dutch).