One of the big four Dutch health insurance companies VGZ is taking over its smaller rival ONVZ, if the competition authority ACM gives its approval. The ONVZ brand will not be phased out.

ONVZ said that as a “small national player” it is unable to compete in terms of economies of scale and keep its premiums competitive. “Thanks to the takeover we will be able to keep our premiums affordable and improve our services,” chairman Jean-Paul van Haarlem said in a statement.

Four companies Achmea (Zilveren Kruis), VGZ, CZ and Menzis control 90% of the market, offering dozens of different brands.

The takeover comes just ahead of the start of the six week window during which policyholders can switch insurance companies.

The government determines the makeup of the basic health insurance policy and the own risk payment, of €385. Insurance companies are free to set their own prices and to determine the cost and composition of top-up policies, covering items like dental services and extra physiotherapy.