Latest report from GlobalData;
The Dutch general insurance industry is expected to grow at a compound annual growth rate (CAGR) of 5.4% from EUR70.8 billion ($72.3 billion) in 2023 to EUR92.4 billion ($97.0 billion) in 2028, in terms of direct written premiums (DWP), forecasts GlobalData, a leading data and analytics company.
GlobalData’s Insurance Database reveals that the Dutch general insurance industry is expected to register an annual growth of 7.3% in 2023 and 5.1% in 2024. The growth will be supported by raising health awareness, increasing vehicle sales, and rising motor and health insurance premium rates due to inflation.
Sneha Verma, Insurance Analyst at GlobalData, comments: “The Dutch general insurance industry has witnessed an upward growth trend since the slowdown in 2021 and grew by 3.2% in 2022. It is expected to reach its peak in 2023, with an annual growth of 7.3%, supported by growing health awareness as well as increasing vehicle sales.”
Personal Accident and Health (PA&H) insurance is the leading line of business in the Dutch general insurance industry, accounting for 82.9% share of the DWP in 2023. PA&H Insurance is expected to maintain its leading position until 2028, supported by an increase in health awareness, especially after the pandemic. Moreover, rising concerns about declining public health infrastructure and longer waiting periods have prompted people to move towards private health insurance.
Health insurance premium rates have been on the rise over the last couple of years, which will support PA&H insurance growth. As per the Health Ministry, the average premium for basic health insurance is expected to increase by 8.1% in 2024 as compared to 2023. PA&H insurance is expected to grow at a CAGR of 5.6% during 2023-28.
Motor insurance is the second largest line of business, accounting for a 7.6% share of the general insurance DWP in 2023. Motor insurance is expected to grow by 3.3% in 2023, driven by an increase in vehicle sales. As per the European Automobile Manufacturers’ Association, vehicle sales for January-October 2023 reached 317,323 units, up by 25.2% as compared to the same period in the previous year. In August 2023, the cumulative EV sales for 2023 reached 108,043 units, an increase of 72% as compared to the same period in the previous year.
Sneha adds: “An increase in motor insurance premium rates due to an increase in car prices, higher energy prices, and increasing service and repair costs will also support motor insurance growth. Motor insurance is expected to grow at a CAGR of 3.7% from 2023 to 2028.”
Property insurance is the third largest line of business, accounting for 5.8% share of the general insurance DWP in 2023. The growth in property insurance is expected to be slower in 2023 and 2024 as compared to 4.9% growth in 2022. As per Statistic Netherlands, the Dutch residential investment market reached EUR1.51 billion in the first half of 2023, a decline of 61% as compared to the same period in 2022. Property insurance is expected to grow at a CAGR of 5.5% during 2023-28.
Liability, Financial Lines, Marine, Aviation and Transit (MAT), and Miscellaneous insurance accounted for the remaining 3.7% of the general insurance DWP in 2023.
Sneha concludes: “Rising premium rates for most general insurance lines will continue to support the growth of the Netherlands general insurance industry over the next five years. However, a continuous rise in premiums will prompt policyholders to switch to cheaper substitutes or reduce coverage, thereby creating a risk for underinsurance, which will remain a focus area for Dutch general insurers.”
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