Insurers demand accurate costings for the government’s proposed NZIIS

As part of its submission to MBIE in opposition to the scheme, as proposed, Partners Life managing director Naomi Ballantyne says she is concerned about the way the levy has been calculated, and that it will probably need to increase early in the life of the scheme.

“This would have a significant negative impact on New Zealand residents, particularly low-income and vulnerable consumers,” she says.

Ballantyne’s view has been echoed by other insurers which, like Partners Life, have provided MBIE with detailed critiques on the NZIIS, with suggestions about how it might be made to work. MBIE did not consult with the insurance industry before releasing its proposals to the market for feedback.

AIA, the Financial Services Council (FSC) and the Financial Services Federation (FSF) have told the government they suspect its costings have been under-estimated. The strongest criticism came from FSF which says it cannot determine whether or not the scheme offers good value as the government has yet to reveal the target audience for NZIIS and how these consumers would benefit.