...Cost-Cutting Pivotal as Low Yields Threaten Life Insurers The Dutch insurance market is mature and concentrated and has one of the highest penetration rates in the world. Given limited growth opportunities, costs need to be cut and Fitch Ratings expects significant progress on this in 2015. The life sector outlook is negative. The individual life insurance market has declined sharply since 2007 as a consequence of tax changes. The fall in demand for life products, together with low interest rates, has hit profitability. Fitch expects this trend to continue in 2015. This could spur consolidation as the market shrinks and insurers cut costs. Fitch expects Dutch bond yields to be lower for longer than expected a year ago. This is detrimental for life insurers, particularly those with large blocks of regular premium business with long-term investment guarantees. The non-life sector outlook is stable. The market has been stable and profitable since the financial crisis began in 2008. Fitch expects...
