Netherlands one of few countries where social security increased last year

The Netherlands is one of the few countries in the world where social risks decreased last year, mostly due to a generous government policy protecting people against the rising costs of living. The Netherlands made it into the top ten of the Social Resilience Index (SRI) by credit insurer Allianz Trade. Denmark tops the Index, followed by Finland and Switzerland.

The Netherlands showed the greatest improvement in social security of the Western countries, with most dropping on the index. “This is mainly due to the generous support packages from the Dutch government,” said Johan Geeroms, director of Risk Underwriting Benelux at Allianz Trade. The support packages mitigated the economic impact of the pandemic and high energy prices and also distorted the picture for the Netherlands, he said.

Despite the Netherlands climbing into the top ten this year, Allianz Trade remains concerned. The government support only “obscured the problem,” Geeroms said. “In the Netherlands, we also see that more and more people are struggling with problematic debts. More and more people are struggling to make ends meet. Inflation has dealt a major blow to many countries, including the Netherlands.”

“Social risks have increased worldwide, mainly due to the rising costs of living,” Allianz Trade said. The credit insurer measured the economic and social resilience of 185 countries using 12 indicators. Compared to 2021, the index fell by 2.1 points this year.

“The indicators we use are very different. Consider labor participation, political stability, income inequality, or trust in the government. Increasing social risks and unrest have significant consequences for the economy. Globally, the situation has deteriorated, and we believe this negative trend will continue,” Geeroms said.