Source: Insurance Council of NZ
One in five New Zealanders have switched insurance providers in the last two years, according to a new survey.
Commissioned by the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ), the survey found 20% of respondents had switched providers in the past couple of years, rising to 34% in the last five years. That compares with 32% who reported they had never switched.
About 21% of those surveyed will routinely shop around when their cover comes up for renewal, compared to 25% who never shop around.
“The survey shows that a relatively low number of New Zealanders consider switching their insurance provider,” ICNZ chief executive Kris Faafoi said.
“We know this is a difficult time for New Zealanders dealing with the cost-of-living and we would encourage people to check out their insurance options.
“Insurance premiums have been affected by a number of factors, some of which are out of our control such as the rising cost of extreme weather events and taxes and levies. Some of those pressures are easing and we are seeing that flow through into premium levels.”
Younger people are more likely to have recently switched, while older people were less likely. Those who have switched in the last 2-5 years were more likely to have been Wellington residents and those on a household income of between $50,000-$100,000.
Over half of those insured have been in contact with their insurance provider about their cover over the past two years, outside of making a claim. Some 16 percent had never contacted their insurer.
“Insurers are looking at ways to help their customers manage their cover to protect themselves as cost effectively as possible and keep insurance affordable and assessable. That includes considering their excess levels or other policy settings. People should take the opportunity to contact their insurer and see what’s available,” Kris Faafoi said.
“People should also consider shopping around and see what deals are out there. The survey indicates only a fifth routinely shop around compared with a quarter than never do.”
Some 41% of respondents said they regularly read their policy wording when updating their insurance. Some 8% never read the policy wording.
“We are encouraged by the number of people reading their policy wording and we’d like to see that rise further. It’s important to know that you are adequately covered and also to know what is not included in your coverage. For example, most house insurance only covers sudden damage, not gradual damage. If you are unsure at all, contact your insurance provider for advice.
“Kiwi’s value the protection that insurance offers to keep themselves and their property safe when the unexpected happens and that’s reflected in the comparatively high level of coverage in New Zealand compared with other countries.
“Keeping in touch with your insurance provider and checking your options regularly can help ensure you have the right level of insurance and piece of mind,” Kris Faafoi said.