AMI and State Insurance premiums risk rating changes

Published: Mon 23 Jul 2018 05:06 PM
AMI and State Insurance premiums take greater account of risks such as earthquakes and floods
AMI and State policyholders with home insurance may notice some changes as premiums take greater account of risks such as earthquakes and floods.
Customers in areas at higher risk of natural hazards, such as earthquake, flood and landslip, are expected to see average increases in their total premium of $91.
Those areas include parts of Whakatāne District, Hawke’s Bay, Wairarapa, Greater Wellington, Marlborough, the West Coast, Kaikōura, Waimakariri District and Dunedin.
Customers in other parts of the country are expected to see average decreases in their total premium of $54.
Those areas include parts of the upper North Island, Taranaki, Selwyn District, North and Central Otago and Southland.
AMI and State policyholders will be contacted from today (July 23) with details of the changes in their premiums, which include changes relating to differences in risk along with changes reflecting IAG's normal approach to reflecting changes in inflation and costs.
Kevin Hughes is Executive General Manager Consumer at IAG, the company behind AMI and State.
“We know New Zealand has many natural hazards, including earthquakes and floods, with different risks in different regions. In the past, the price people pay for home insurance hasn’t fully reflected these differences in risk. This is now changing.
“Over the past few years, we’ve seen how New Zealand’s environmental risks have evolved, and we’re taking these risks more into account. While we can’t ignore these changes, we can continue to be there for our customers when misfortune strikes. This means our prices must change.
“Generally, a home in a location which is a high-risk area for earthquakes or floods will cost more to insure than a like-for-like home in a lower risk location.
“We know that, for some of our customers, this will be a challenge and we’re committed to working with them through this.
“We will continue to provide solutions and work to make insurance as affordable as possible for them.”
Notes to editors
Customers who would like to reduce the impact of any changes have a variety of options:
•Voluntary excesses: For eligible customers, taking a voluntary excess may reduce their premium
•Payment timing options: Customers have the option of paying monthly or quarterly (depending on their policy)
•Linked policy discount: If State customers insure both their home and contents at the same address, they may qualify for a linked policy discount
•Multi policy discount: Customers who insure their home and contents under the same brand may qualify for a multi policy discount
•Contents only - Burglar alarm discount: If their home has a professionally installed alarm, they may be entitled to a discount
• Customers with significant increases in their premium will be contacted by us to explain the situation and to discuss options.

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