Sunday , August 25 2019
Home / newzealand / Wellington Mayor asks for insurance forum after IAG price increase announcement

Wellington Mayor asks for insurance forum after IAG price increase announcement



Wellington Mayor Justin Lester wants to organize a forum to discuss the announcement of the country's largest insurer, the IAG, to increase insurance premiums.

IAG, the owner of state insurance brands AMI and NZI, said it was making changes to its home and content insurance, which means people in disaster-prone areas pay more.

As of July 1, IAG awards will take more into account the natural and severe weather-related risks for specific residences.

Lester said the IAG announcement was a "daunting prospect" for those facing rising home premiums they already own, and also made it harder for homebuyers.

CONSULT MORE INFORMATION:
* Tower hits homeowner with $ 10,000 prize under new earthquake risk assessment
* The IAG launches new prices to reflect the climate, the risk of natural disasters
* The reorganization of Wellington insurance: the "conservative" approach of the IAG has spread throughout the industry

Wellington Mayor Justin Lester says that increasing the premium on the part of the IAG would make it harder for first-time buyers.

GETTY-IMAGES

Wellington Mayor Justin Lester says that increasing the premium on the part of the IAG would make it harder for first-time buyers.

"The IAG has between 40 and 50 percent of Wellington's market, so this could affect many of our residents," Lester said.

IAG also offers insurance through ASB, BNZ, The Co-Operative Bank and Westpac.

Customers who live in areas prone to natural disasters and severe weather events may have to pay more for insurance. And those who live in less prone areas may pay less.

Are you trying to get insurance? Will this change affect you? Please contact anuja.nadkarni@stuff.co.nz.

It follows a similar move from Tower and reports that the IAG was restricting the sale of new home and content policies in Wellington.

Customers who live in areas prone to natural disasters and severe weather events may have to pay more for insurance.

MAARTEN HOLL / STUFF

Customers who live in areas prone to natural disasters and severe weather events may have to pay more for insurance.

Lester said he raised the issue with Megan Woods, the minister responsible for the Earthquake Commission, and would be convening an insurance forum and inviting the Insurance Council, IAG, corporate representatives and homeowners who were significantly affected by premium increases.

"I want to address the problems in the Wellington market and analyze the immediate and long-term future of the people who need insurance.

"It may be that the government needs to consider which insurance companies to offer in a market, and they may have to offer an affordable option where they operate.

"Insurance is crucial for a city, it has to be available and affordable for banks to lend, for businesses to operate efficiently and for people to have peace of mind," Lester said.

Insurance Board executive director Tim Grafton said he has not yet spoken to the mayor and discovered the forum by way of a press release.

"We welcome the opportunity to discuss this issue further with the mayor," said Grafton.

Grafton said that climate change and climate change were inevitable, it was "equally inevitable" for insurance policies to respond to change.

"This does not have to be an increase in premiums – insurers have other levers available to them, including reducing the coverage offered, introducing sub-limits for some types of coverage or increasing customer excesses.

Insurance companies would make the changes according to their business models and risk appetite, Grafton said.


Source link