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.”