Due to Covid a lot of entrepreneurs are in distress and are not able to meet premium obligations. Luckily the Dutch Association of Insurers and the Dutch State provide various ways of help to prevent entrepreneurs from falling into premium debt, to prevent a large-scale reduction and withdrawal of credit limits by credit insurers and to lower the risks for event organisers.

Framework for entrepreneurs in distress
The Dutch Association of Insurers has developed a framework for entrepreneurs in distress. The framework offers insurers, proxies and advisers/brokers an overview of possibilities for adjusting insurance cover, shortening the term of the premium and extending the term of payment, for example. In doing so, they expressly look for solutions to prevent entrepreneurs from falling into (premium) debt.

Depending on the severity of the acute (liquidity) problems, the framework offers unequivocal measures and a course of action ranging from adjusting the insurance cover, changing the premium period to, for example, six months, quarter or month, or extending the payment period by 30 days. These measures are tailor-made for each individual customer. To be eligible for these measures, entrepreneurs/customers must contact their insurer, authorised agent, broker or adviser themselves. These measures apply for the time being until 1 July 2021. Every month, the Insurers' Association evaluates the measures and examines whether any changes are necessary. The regulations are binding on all members.

The framework is a tool for business non-life insurance, including the business insurance of the self-employed such as the AOV (disability insurance), but excluding business products that fall under the Pension Act. Situations where payment terms already apply to non-life insurance are not covered by the framework. There will also be no refunds of premiums already paid due to changed payment terms.

The Dutch state as reinsurer
Due to the fear that credit insurers would be reluctant to provide new credit insurance or lower the credit limits, the government has decided to reinsure (entire) portfolios of credit insurers. The starting point for the reinsurance was that the limits in force on 1 January 2020 would be maintained or, where necessary, reinstated. Claims that had already been paid out before 1 March 2020 were not covered.

The total reinsurance, which has been extended to 30 June 2021, amounts to €12 billion. Insurers report to the State on a monthly basis and the reports show that the measure is having the intended effect, as there has been no large-scale reduction and withdrawal of credit limits due to increased credit risk.

Covid-19 temporary grant scheme for events instead of pandemic cover within event cancellation insurance
Based on the expectation that the epidemiological situation will be more favourable in the second half of 2021, the government expects that events will be able to take place again.
In order to stimulate the organisers to make preparations and to maintain the viability of the sector, the temporary regulation subsidy events Covid-19 has been drawn up. An organiser of an event organised in the Netherlands and planned between 1 July and 31 December 2021, can claim under the regulation if the event is banned by the government because of Covid-19 and the organiser cancels the event as a consequence. The regulation has a subsidy ceiling of €385 million, distributed in order of receipt of applications.
The reason for this regulation is that the pandemic cover within event cancellation insurance has lapsed. Therefore, this regulation is only open to events that previously had a cancellation insurance.