Construction All Risks
Various local and international insurance companies operate within the Dutch market. The specialist construction market insurers are very experienced and their knowledge is of a high quality.
The experience of the locally Insurance market is very important, especially for the larger construction companies who are involved in large or complex constructions / projects such as off shore, power stations, breakwaters, quay walls, horizontal directional drillings, harbours and the like.
Manuscript wordings, created by brokers to meet the needs of their clients, are common. As a result Dutch wordings are currently considered to provide broad coverage. Despite this premiums and deductibles are very competitive.
The Dutch construction insurance market has been changing rapidly in the recent years. Several reputable insurers who provided lead market capacity have withdrawn from the construction market. This was in part for strategic business reasons, partly due to poor results and in some circumstances a combination of both. The largest impact has been experienced in relation to stand alone coverage for single projects.
Despite the reduction in competition following the withdrawal of these insurers, capacity in the Dutch market is still considered sufficient. New insurers have entered the market and the remaining traditional construction insurers expanded their capacity. As such, we do not foresee any short term change in premium rates.
The Dutch market has not experienced any significant claims. As a consequence premium levels are at an all-time low.
There are no signals that that situation will change in the short or mid-term future. Indeed, with insurers from the UK entering the Dutch markets it is expected that the capacity may grow and competitive pressure will increase.
As a result of significant claims in PPP the PI market is under pressure. Indeed the market leader for Dutch PI has withdrawn from the Design and Construct Liability market.
While other insurers are emerging, they are more cautious - premium rates and deductibles have increased on recent projects. Indeed the experience is no longer confined to PPP projects but is being experienced for construction risks more generally.
Outstanding claims remain in the market. As a result we do not see improvement in market conditions in the short term. The outlook over the mid-term will be dependent on the outcome of the claims and the competitive market forces.
D&O insurance has increasingly become a commodity within the Dutch market.
We do not expect to see any significant change over the short and mid-term.