NZ: Premium hikes hit all cities

NZ Herald,
2 October, 2011


Insurance premiums on houses will soon increase by nearly one-and-a-half times as a result of the Christchurch earthquakes.


In fact, insurance brokers say house policies have already increased by 25 to 30 per cent this year, even in cities like Auckland which are not earthquake-prone.


Insurers Vero and Lumley - which have increased their prices - confirmed the hikes. Vero chief executive Gary Dransfield said the increases began soon after the first Christchurch quake, rather than in one hit.


But future increases - probably after the election - in the Earthquake Commission levy could raise the total hike to close to 1 times the insurance premiums of just a year ago.


The EQC disaster fund is now in "a state of negative equity" - its liabilities are greater than the value in its funds. Government ministers are now considering a report on its future.


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