The cost of car insurance should see a sharp rise if insurance companies are to remain financially viable, according to the Dutch central bank.

The bank says a number of insurers made a loss in 2010 and that at least half of the 28 insurers charges a premium that does not cover costs. This can lead to financial problems and even bankruptcy, reports the NOS website.
Since 2006, car insurance premiums have dropped by 17%, from €311 to €257.
The bank warned insurers six months ago of the consequences of keeping premiums low, since when some have increased their prices.