NMa approves merger between Dutch health insurers Achmea and De Friesland

Having conducted a detailed investigation in the licensing phase, the Netherlands Competition Authority (NMa) has approved the merger between Dutch health insurers Achmea and De Friesland.

The NMa’s investigation has revealed that Achmea/De Friesland would have a strong buying position in the northern Dutch province of Friesland. However, Achmea/De Friesland customers and patients do not have to fear a reduction in the quality of their health care plans or of their benefits. Henk Don, member of the Board of the NMa explains: ‘If customers or patients are not satisfied with their health care plans or benefits, they can switch health insurers rather easily. Risking to lose customers to competitors, the new company will think twice before reducing the quality of their health care plans or benefits.’ Another important factor is that insurers attach considerable value to maintaining a positive image among insured persons. That is why insurers will not make adjustments that easily to their health care plans that would negatively affect their customers or patients, because that would negatively affect their carefully cultivated image, according to the NMa.

In the first-phase decision (December 28, 2010), the NMa concluded that this merger required further investigation. In the subsequent licensing phase, the NMa investigated the planned merger in more detail. The opinions of various stakeholders in the health care field have been included in that investigation, including those of health insurers, health care providers, and collectives. In its opinion, the Dutch Healthcare Authority (NZa) concludes that the merger will not affect accessibility, affordability, or quality of health care in the province of Friesland.

Merger review 
When reviewing mergers and acquisitions, the NMa assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market. It is important to have competition, because it encourages organizations to put more effort in offering more and better products and services. Competition offers consumers considerable advantages: competition generally leads to greater freedom of choice, higher quality and lower prices.

The merger decision (in Dutch) will be published on the NMa’s website as soon as possible (www.acm.nl).