ACM study into competition in the Dutch health insurance market

Competition in the Dutch health insurance market

Interim report

There is room for improving competition in the Dutch health insurance market. This has been revealed by research conducted by the Netherlands Authority for Consumer and Markets (ACM).

Competition among health insurers stimulates them to procure quality health care for a fair price. In this way, Health insurers can offer good and affordable insurances to consumers. The level of competition between health insurers is therefore a key determinant in the realization of a well-functioning health care market.

The ACM research team sees room for improving competition. Therefore, ACM will carry out additional research this year. This follow-up research should lead to detailed recommendations for strengthening competition in the health insurance market.

Follow-up research: three hypotheses

This follow-up research will be focused on the following three assumptions:

1. Large health insurers have insufficient incentives to set themselves apart, and thus to attract customers;
2. Unnecessarily high barriers to entry and expansion in the health insurance market limit the competitive pressure exerted by potential entrants and smaller health insurers;
3. Limited transparency and unnecessary complexity of the product range limit the competitive pressure that consumers can exert on health insurers.

The follow-up research should be ready by the end of 2016.

• More information about health insurance
• Read the study Gupta: the business model of health insurers (in Dutch)