Economic uncertainty and declining financial markets are expected to impact a range of Dutch insurance products, says GlobalData, a leading data and analytics company.
GlobalData insurance analyst, Deblina Mitra, commented: “A rise in economic uncertainty amid the countrywide lockdown is expected to impact surety insurance and trade credit. The slowdowns and trade restrictions will impact the repayment of trade credits and investment loans, resulting in an increase in claims demand for the insurers.”
The Dutch life insurance market was not predicted to see much growth up to 2023, with GlobalData forecasting a CAGR of 0.2%. However, this has been further revised down, to register negative growth of 0.7% CAGR between 2020-24, following the COVID-19 outbreak.
Mitra continued: “Another line struggling amid the pandemic is construction and manufacturing. The lack of migrant workers and supply chain disruptions due to travel bans and lockdown is causing severe deterioration in this market. This, coupled with disruption in the distribution framework of the engineering sector and the lack of agricultural production, will decrease the growth potential of the property insurance sub-segment.”
Netherlands Insurance News Snapshots:
- Lemonade launched in the Netherlands on April 2nd, despite the economic uncertainty surrounding Covid-19.
- ASR suspended its share buyback scheme, and cancelled the shareholders dividend on April 5th.
- The EU approved a Dutch government plan to provide E23million of support in the health and social care sectors. Much of the new money will be spent on virtual support, GP consultations and non-Corona telemedicine services.
AVIVA LOOKS AHEAD WITH WAREHOUSE PURCHASE
The trend towards online shopping is likely to increase as restrictions on High Street shopping, Malls and face-to-face transactions of all types continues into 2021. So Aviva have made a timely investment in Dutch warehouse space, buying a building at Bosporusstraat 51 on the Distripark Maasvlakte, from Euro-Rijn Group for an undisclosed amount.
The 40,000sqm asset consists of two adjoining logistics buildings with accompanying office facilities.