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SUPPLIED CONTENTexposed to the impacts of rising sea
levels and floods, so this is likely to
be something insurers will take into
account when pricing.”
According to Taylor, areas of
the country that sit on fault lines
such as Wellington, Kaikoura and
Christchurch will also be under the
spotlight.
In the regions impacted by the
Kaikoura earthquake, the insurance
market has seen a reduction in
appetite to extend coverage for new
customers, an increase in limits
insured for existing customers,
and in some cases insurers
have withdrawn completely from
providing property insurance.
“While many insurers are reluctant
to insure in some of the regions
where the risk is higher, NZI is
looking at how to price appropriately
for the risks concerned.”
But, Taylor says, “Just like you
can’t expect a Blues supporter in
Auckland to fund a new Hurricanes
stadium in Wellington – we can’t
expect a customer in an area not
exposed to these significant claim
events to unduly shoulder the costs
for others.”
Taylor says NZI will be
increasingly putting in place pricing
that aligns with risk.
“As one of New Zealand’s largest
and most well-known insurance
brands, NZI (as part of IAG) has
the experience, expertise in riskand access to data to allow us to
price more accurately for risk into
the future.
“We have developed
sophisticated pricing technology
to respond to changing risks, as
we focus on ensuring we remain
sustainable and here for our
customers for the long-term.”