ACCORDING TO THE ASSOCIATION BRINGS INDIVIDUALLY ENSURING THE FLOO...

16. According to the Association brings individually ensuring the flood (too) high investment costs. The purchase

of (affordable) reinsurance capacity for an individual insurer impossible. This is partly to do with the fact that there

are for the Dutch situation, no risk model exists and needs to be developed so that high (initial) investment costs.

The Association indicating that insurers the risk that this insurance is unsuccessful (due to the expected low

demand) to large to start, itself a costly development process. For the same reason, according to the Association

large reinsurers and reinsurance brokers at this time no insurance risk model and product have been developed. It

states that the Association joint investment by the cost per individual insurer are lower and that makes collective

purchase of reinsurance capacity procurement significantly cheaper. Insurers consider such an investment, however,

only justified if there is a certain degree of mandatory. For this reason, the construction of insurance the

Association is mandatory.