News Non-Life12 Jun 2019

New Zealand:Wellington forms taskforce to tackle insurance premium hikes

| 12 Jun 2019

Wellington, the capital of New Zealand, is forming a taskforce to look at the insurance market amidst premium increases that are hitting businesses hard.

The formation of the taskforce follows a mayoral forum on Insurance on Monday on insurance issues in Wellington. Details are being worked out.

The forum was attended by over 100 decision-makers including Finance Minister Grant Robertson, Earthquake Commission Minister Dr Megan Woods and Commerce Minister Kris Faafoi.

Mr John Milford, chief executive of the Wellington Chamber of Commerce, said insurance premiums in Wellington rose after the 2010-11 Canterbury earthquakes, rose again after the 2016 Kaikoura earthquake, and were now rising yet again due to insurers adopting "risk-based" pricing.

He said, "For commercial property owners these cost increases are staggering and are directly leading to rising rents for businesses in Wellington city.

"For business tenants, rising insurance premiums and rents are just one of the many factors driving up their costs.

"Insurance comes on top of recent Fire Service Levy rises of 40%, as well as forecast rates increases by both the Wellington City Council of 3.9% and Greater Wellington Regional Council of 8.9% for next year alone.

 

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