About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Monday, August 19th, 10:58PM
rss
Latest Headlines

IAG boosts premiums to reflect risks

New Zealand’s largest general insurer will be taking more account of risk in its premiums and that means customers in disaster-prone areas will face bigger costs.

Tuesday, April 30th 2019, 4:55AM

by Miriam Bell

From July 1, IAG will be altering the way it charges so that customers living in areas more prone to natural disasters and severe weather events are likely to pay more for home and contents insurance.

Conversely, customers who live in areas that are less prone to problems may end up paying less.

The changes will be communicated to customers over the next 12 months when their policies come up for renewal.

They will affect all of the insurers’ brands (State, NZI and Lumley) as well as the insurance its sells through banks ASB, BNZ, The Co-Operative Bank and Westpac.

IAG’s executive general manager customer and consumer Kevin Hughes says New Zealand’s environmental risks have evolved in recent years and they need to take more account of those risks

Premiums need to reflect the level of risk and costs associated with providing insurance cover, including reinsurance costs, he says.

“But every customer and every property is different and so every policy will be affected differently, whether that be a price increase or decrease.

“We realise these changes will be a challenge for some customers and we will work through this with them.”

He says there are a range of options available to customers to make this easier, including taking a higher excess or adjusting the frequency of payments to suit them.

“We will continue to provide solutions and work to make insurance as affordable as possible.”

The move by IAG follows on from last year when it changed the premiums for its AMI and State Insurance customers to take into account risk from earthquakes and floods.

It also follows a similar move by Tower which shifted to risk-based pricing in its premiums last year.

IAG says its new changes are also prompted by changes in the cover provided by the Earthquake Commission (EQC) in relation to damage to residential homes and contents from natural disasters.

EQC will now cover more of the costs for rectifying damage to residential homes. From 1 July, EQC will pay up to $150,000 plus GST per residential home.

However, EQC will no longer provide cover for contents. IAG will provide this to its customers who have contents insurance.

 

Tags: house insurance IAG insurance property investment property management

« Climate change insurance threatTenants need to know about insurance »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.19 4.25 4.49
ANZ Special - 3.69 3.75 3.99
ASB Bank 5.20 ▼4.25 ▼4.19 ▼4.39
ASB Bank Special - ▼3.75 ▼3.69 ▼3.89
BNZ - Classic - ▼3.69 3.75 ▼3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 ▼4.45 ▼4.35 ▼4.55
BNZ - TotalMoney 5.30 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp ▼5.19 ▼4.29 ▼4.29 ▲4.49
HSBC Premier 5.89 3.79 3.79 3.89
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 ▼4.30 ▼4.40 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.55 ▼3.65 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
RESIMAC Special - - - -
SBS Bank ▼5.29 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.78 3.78 3.99
Sovereign ▼5.30 4.35 4.29 4.55
Sovereign Special - 3.85 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.79 3.84 3.99
The Co-operative Bank - Standard 5.15 4.29 4.34 4.49
TSB Bank ▲6.09 ▲4.65 ▲4.59 ▲4.85
TSB Special 5.29 ▼3.85 ▼3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.69 4.79 5.19
Westpac - Offset 5.34 - - -
Westpac Special - ▼3.69 ▼3.75 ▼3.99
Median 5.50 4.29 4.25 4.19

Last updated: 16 August 2019 8:50am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com