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Consumer NZ criticises soaring insurance premiums and lack of competition

Insurance news

Consumer NZ expert Rebecca Styles has highlighted the steep rise in insurance premiums, particularly house insurance, which has increased by 97% over the past decade and by more than 30% this year alone.

Speaking to state media, Styles attributed the surge to a lack of competition in the New Zealand market, where multiple brands are often linked to the same parent companies.

This limited competition, combined with the need for individual assessments for house insurance quotes, makes it difficult for consumers to compare prices effectively.

Styles also pointed out the disparity between New Zealand and Australia, where consumers can challenge unreasonable premiums.

She urged for similar rights in New Zealand, advocating for an avenue where consumers could contest insurance costs, stressing the need for greater transparency in how insurers use data, such as risk factors like flood zones and fault lines, to justify higher premiums, stressing that this information should be more accessible to customers.

Image credit: Getty Images

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7 COMMENTS

  1. Deflecting from the real cause, Inflation, which is the “stealth tax” policy of the corporate state government. Inflation is always and ever a monetary phenomenon, with the cause being state government/central banks.

  2. Tower made millions in profits…last year.
    And yet, it’s the most difficult insurance company to get a claim paid.
    Look at who underwrites many of these ‘face value’ insurance companies..!
    Life Insurance never seems to pay out;
    55 y/o woman, non-smoker, having to take meds, monthly premium: NZ$ 110
    Twice-monthly premium for a 65 y/o/ male non-smoker with HBP and pre-diabetic; NZ$690.
    The male is from another Western Nation…
    Deliberate target rip-offs for those not considered to be ‘Kiwis’?
    We have friends who have experienced this…and it’s disgusting.
    Yet, the Commerce Commission, Insurance Commission will NOT investigate these anomalies!
    The Old Boy Networks target who they will rip off…and it’s actually criminal activity to do so, but never enforced here, as they continue to get away with it!!!
    Just like the food retailers…and yet:
    The Bald-Headed One is smiling all the way to the Bank, just like a former J3wi$h PM who was nicknamed ‘The Smiling Assassin’!

  3. If we had decent government, this would be a good place to start an investigation and impose anti competitive regulation of this industry. Of course, we have globalist stooges who cater to the foreign banking/finance interests who own a healthy swag of the so called NZ insurance industry. Premiums are through the roof, there’s little real competition to offer consumers any financial relief. Small wonder people are fleeing to Australia and elsewhere.

  4. People are more and more are opting to bypass having home insurance
    Consumer NZ Feb 2024 write up of survey
    “Of those respondents without contents insurance, 18% didn’t renew or cancelled their policy because of the high cost; while 8% of homeowners made the same choice for their house insurance”
    https://www.consumer.org.nz/services/house-and-contents-insurance/how-we-test
    I mentioned this to my insurers and they confirmed it
    If the stats are right the % of house owners uninsured is increasing ( from 3% two years ago to most likely 15% now?). It appears overall internet published stats may lump house and business premise insurance together so covers up the trends of house property owners.
    It does feel like we are being double duped with costs, in that the more people unable to pay insurance means even higher prices for those that do pay to keep up insurance company profits. Would be nice to see all the real stats being published.

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