Health insurance company VGZ says it is not concerned about losing some 10% of its customers in a two year period because the reduction in its client base is part of deliberate policy.

Nevertheless, the change in strategy will have consequences for the cooperative’s financial position. ‘We will take in a lot fewer premiums next year,’ managing director Tom Kliphuis told the Financieele Dagblad on Tuesday.

The divested labels proved too expensive for VGZ, because of the high fee it paid the companies administering the insurances.  When talks on a change in terms broke down, VGZ decided to end the contracts.

‘Our strategy is to attract more older people, the chronically sick and people on minimum incomes and to offer them added value,’ Kliphuis said. Health insurance companies get extra compensation for policyholders considered to be high risk groups.

In 2015, all the policy holders insured via the IAK label were switched to Avero while Promovendum, the policy targeting university graduates, has gone to Luxembourg based Iptiq.

The move means Iptiq will be the first foreign health insurer to operate in the Dutch market, offering basic and top up health insurance policies under the Promovendum, National Academic and Besured labels from next year.

‘This is not a short term investment. We have a clear plan worked out for the coming years,’ Iptiq marketing chief Marco Kamerling told the FD earlier this year.

The Netherlands has a myriad of health insurance companies but most of them are owned by the big four: Achmea, CZ, Menzis and VGZ/Univé. Together they control 90% of the market.