Life insurance companies from the Netherlands, such as ING Groep NV and Delta Lloyd NV have faced tests of their financial abilities. This new test can now allow regulators to block dividend payments under new proposals made.
These new firms would now have their abilities to withstand stock market shocks and other real estate or interest rate related risks starting Jan 1, 2014. This was according to new regulations recently published by the regime of Dutch Finance Minister Jeroen Dijsselbloem.
The Netherlands is pushing through with its plans before the application of the Solvency II rules on capital buffers throughout the European continent. The said schedule was to be enforcible by the earliest, 2016. The life insurers are under pressure because of a housing market slump and competition from other bank offers which cut into demand for these kinds of life insurance products. Overall, the market was able to raise EUR384 billion or USD522 billion in invested assets in 2012.
According to Djisselbloem, "The Dutch insurance industry and life insurers in particular, have to deal with a number of coinciding challenges and problems. I see no reason to wait with the introduction of risk-based supervision on solvency until Solvency II is implemented."
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