b"SEQUEL LYDIA VAN PUIJENBROEKDECLINE OF TIED AGENTS IN GERMANY CONSOLIDATION IN GERMANY HAS YET TO In Germany, Allianz is a strong market leaderGAIN MOMENTUMwith a turnover of 37.4 billion in gross writtenGerman intermediaries also require scale to premiums. The German market is even moreachieve sufficient purchasing power and make IT fragmented than the Dutch insurance market.investments. Unlike the advanced consolidation With a market share of 40%, Germany has 46,000in the Netherlands, the consolidation process independent advisors (29%) and tied agents (71%).in Germany has only recently begun. Investors Van Puijenbroek: 'In the Netherlands, Belgium,see the German market as attractive due to its and England, independent advisory firms (brokers)size (in terms of acquisition targets and euros). dominate, while in Germany, Spain, and Italy, tiedMoreover, prices are lower compared to mature advisors working for a single provider (agents)markets such as England and the Netherlands. prevail.' Germany has a much higher densityAdditionally, the German property and casualty of offices compared to the Netherlands, formarket is one of the largest in Europe, generating example. Additionally, banks still play a relativelyhigh profit margins and is expected to continue significant role in the distribution of insurancegrowing strongly in the coming years. 'I anticipate in Germany, unlike in the Netherlands where thesignificant changes in the German intermediary banking channel has virtually disappeared. Due tomarket in the coming years,' says van Puijenbroek.the highly fragmented German market, it is more challenging for insurers to reach customers, and for end customers, it is a challenge to find the right intermediary or agent that aligns with their needs and preferences.Broker | Agent Ratio100%100% 100% 21% 31% 92% 71% 83%80%60%40%79%69%20%29%0% 8% 18%England Netherlands Belgium France Spain Germany ItalySource: Adfiz Advies in cijfers 2022-2023 Agents BrokersNEW FOREIGN PLAYERS IN THE GERMAN MARKETMajor intermediaries such as Ecclesia, GGW, and MRH Trowe play a highly active role in making acquisitions and are currently leading the consolidation in the German insurance market. Several foreign companies, such as the Swedish company Sderberg and Partners, are making plans to enter the German market.52 BHB DULLEMOND"