• 1-800-526-8630U.S. (TOLL FREE)
  • 1-917-300-0470EAST COAST U.S.
  • +353-1-416-8900REST OF WORLD
Bancassurance in the Netherlands: Life, Non-Life and Creditor Product Image

Bancassurance in the Netherlands: Life, Non-Life and Creditor

  • ID: 1999296
  • November 2011
  • Region: Netherlands, Holland
  • Finaccord

PUBLICATION OVERVIEW

Finaccord’s report titled Bancassurance in the Netherlands: Life, Non-Life and Creditor Insurance is about the distribution of insurance products through banks and other lending institutions in the Netherlands. Types of insurance considered are: investment-related life insurance and retirement savings; risk life insurance, critical illness insurance and income protection insurance; accident insurance, medical expenses insurance and health / hospital cash plans; personal motor insurance and household insurance; and creditor insurance for mortgages, consumer finance and credit cards.

Based on a survey of 55 organisations, it identifies 115 bancassurance distribution initiatives across these types of insurance, and highlights the operating models and product providers used in the vast majority of cases. Moreover, it analyses these bancassurance agreements in terms of ‘weighted partnerships’ which take into account the size of the retail customer base of the banking institutions distributing these policies, thereby differentiating between the most important relationships and those that are comparatively minor.

In addition, with READ MORE >

Note: Product cover images may vary from those shown

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

What is this report about?

Distribution partnerships with banks and other lending institutions constitute the focus of this report

Rationale

Across Europe, over 80% of banking entities surveyed are active in this arena to one extent or another

Methodology

Survey of banks and other lending institutions

Market data

Definitions

Investment-related life insurance

Retirement savings

Risk life insurance

Critical illness insurance

Income protection insurance

Accident insurance

Health / hospital cash plans

Medical expenses insurance

Personal motor insurance

Household insurance

Creditor insurance

Mortgages, consumer finance and credit cards

Weighted provider share of partnerships

Operating models

Abbreviations and exchange rates

Finaccord

2.0 MARKET ANALYSIS

Banks and other lending institutions covered

Introduction to the banking sector

The Dutch state exerts a greater influence on the retail banking sector than foreign institutions...

…and is likely to continue to do so until 2014 at least

ING has reshaped itself greatly in recent years

Several lending institutions have closed to new business

Investment-related life insurance and retirement savings

Insurance market size and growth

The Dutch market for investment-related life insurance and retirement savings is relatively large but mature

Distribution share of banks

The share of banks in the retirement savings market fell back slightly between 2008 and 2010

Bancassurance provision rates, operating models and partnerships

Investment-related life insurance

Captive and joint venture underwriters are almost completely dominant in this market...

... albeit Friesland Bank utilises a captive broker as opposed to a captive underwriter

Banking entities not selling investment-related life insurance are mainly specialised lending institutions

Retirement savings

Arrangements for retirement savings very similar to those for investment-related life insurance

Performance of key bancassurance underwriters

Underwriters owned wholly or in part by banks account for over one third of total life insurance

Protection-related life insurance

Insurance market size and growth

Different forms of income protection insurance are significant within the overall market

Distribution share of banks

Banks increased their share of the individual life insurance market between 2008 and 2010

Bancassurance provision rates, operating models and partnerships

Risk life insurance

Eight captive underwriters and three joint venture underwriters are active in this market

Where risk life insurance is not offered, there is usually a logical reason why this is the case

Critical illness insurance

No bancassurance policy in the Netherlands fits the definition of critical illness insurance

Income protection insurance

Dutch income protection plans are designed for medium-term disability, not unemployment

Performance of key bancassurance underwriters

Accident and health insurance

Insurance market size and growth

The value of the Dutch health insurance market is exceptionally high because holding cover is obligatory

Distribution share of banks

The relative strength of Dutch banks in personal non-life insurance is not replicated in health insurance

Bancassurance provision rates, operating models and partnerships

Accident insurance

Provision of accident insurance by banks is carried out mainly by means of captive underwriters

Five institutions classified as banks (as opposed to specialised lenders) have no activity in this area

Medical expenses insurance

Banks do not constitute a significant channel for distributing health insurance...

Health / hospital cash plans

... whether formulated as medical expenses insurance or lower value plans

Performance of key bancassurance underwriters

Underwriters owned wholly or in part by banks account for a relatively low share of premiums

Personal motor and household insurance

The Dutch market for personal motor and household insurance delivers virtually no growth

Distribution share of banks

Bank sales account for in excess of 20% of the total personal non-life insurance market

Bancassurance provision rates, operating models and partnerships

Personal motor insurance

A dozen Dutch banks distribute personal motor insurance...

... mainly by means of captive or joint venture underwriters

Household insurance

A very similar picture emerges for household insurance

Performance of key bancassurance underwriters

Underwriters owned wholly or in part by banks account for well over 20% of total motor insurance...

... and in excess of 30% of total property insurance

Creditor insurance

Consumer lending market size and growth

Mortgage lending

In terms of balances per capita, the Dutch mortgage market is one of the most developed in Europe...

Non-mortgage lending

... although the non-mortgage lending sector is modest by comparison

Credit and other pay later cards

The Dutch market for credit and other pay later cards has contracted since 2006

Creditor insurance provision rates, operating models and partnerships

Creditor insurance linked to mortgages

By weighted share of partnerships, the Dutch market appears highly concentrated...

…and largely controlled by captive or joint venture underwriters owned by the leading banks

Creditor insurance linked to consumer finance

Many partnerships for this form of creditor insurance are the same as those for mortgage-related policies...

Creditor insurance linked to credit cards

Only two underwriters were found to be active in credit card payment protection insurance...

…with a limited pool of card issuers available to them to cultivate

Creditor insurance risk coverage

Virtually all policies tied to consumer finance include cover for temporary incapacity and unemployment

Alternative distribution channels

The Nationale Hypotheek Garantie is important in the context of mortgage-related insurance

Mortgage and insurance brokers comprise another significant independent distribution channel

Creditor insurance market size, growth and forecast

Creditor insurance in the Netherlands is largely dominated by mortgage-related cover

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Overview of bancassurance provision rates for different types of insurance in the Netherlands, 2011

1.0 INTRODUCTION

Banks and other lending institutions in the Netherlands contacted by Finaccord, segmented by type

2.0 MARKET ANALYSIS

Gross written premiums for investment-related life insurance and retirement savings in the Netherlands, 2006-2010

Gross written premiums for investment-related life insurance and retirement savings in the Netherlands, 2006-2010 (data)

Distribution share of banks in total individual life and pension insurance in the Netherlands, 2008 and 2010 (data)

Bancassurance provision of investment-related life insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of retirement savings in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Market share in total life insurance of key bancassurance underwriters in the Netherlands, 2006-2009 (data)

Gross written premiums for protection-related life insurance in the Netherlands, 2006-2010

Gross written premiums for protection-related life insurance in the Netherlands, 2006-2010 (data)

Distribution share of banks in total individual life, mortgage-related life and funeral expenses insurance in the Netherlands, 2008 and 2010 (data)

Bancassurance provision of risk life insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of income protection insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Gross written premiums for accident and health insurance in the Netherlands, 2006-2010

Gross written premiums for accident and health insurance in the Netherlands, 2006-2010 (data)

Distribution share of banks in personal non-life and health insurance in the Netherlands, 2008 and 2010 (data)

Bancassurance provision of accident insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of medical expenses insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Market share in accident and health insurance of key bancassurance underwriters in the Netherlands, 2006-2009 (data)

Gross written premiums for personal motor and household insurance in the Netherlands, 2006-2010

Gross written premiums for personal motor and household insurance in the Netherlands, 2006-2010 (data)

Distribution share of banks in personal non-life, personal motor, household buildings and household contents insurance in the Netherlands, 2008 and 2010 (data)

Bancassurance provision of personal motor insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Bancassurance provision of household insurance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Market share in total motor insurance of key bancassurance underwriters in the Netherlands, 2006-2009 (data)

Market share in total property insurance of key bancassurance underwriters in the Netherlands, 2006-2009 (data)

Residential mortgage lending balances outstanding in the Netherlands (absolute and per capita), 2006-2010

Consumer non-mortgage lending balances outstanding in the Netherlands (absolute and per capita), 2006-2010

Credit and other pay later cards issued and per capita in the Netherlands, 2006-2010

Key data points for the consumer lending market in the Netherlands, 2006-2010

Provision of creditor insurance linked to mortgages in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to consumer finance in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Provision of creditor insurance linked to credit cards in the Netherlands, 2011: provision rate, operating models and weighted provider share of partnerships

Risk coverage of creditor insurance policies in the Netherlands, segmented by type of underlying product, 2011

Creditor insurance gross written premiums in the Netherlands, segmented by policy type, 2007, 2011 and 2015 (forecast)

Creditor insurance gross written premiums in the Netherlands, segmented by cover type, 2007, 2011 and 2015 (forecast)

Creditor insurance gross written premiums in the Netherlands, segmented by policy and cover type, 2007, 2011 and 2015 (forecast) (data)

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

RELATED PRODUCTS

Our Clients

Our clients' logos