Check with your insurer before you have the vaccine. It’s reported that some or all life insurance won’t pay out for COVID vaccine related deaths, as the ‘vaccine’ is experimental. If this is too big a risk for your insurers, should you be taking it?
Even having had a COVID test could mean you are no longer eligible for insurance. You need to do some careful research, contact your insurers, before getting vaccinated or tested.
You could read between the lines of the following from ABI –
Can I still buy life insurance?
Many insurers are still accepting life insurance applications and some have now included a coronavirus related question (see below for expected questions). Some insurers are delaying applications if you are currently testing positive for coronavirus and need to provide medical evidence, but this does not mean you cannot apply again in the future.
What questions should I expect to be asked on coronavirus when applying for life insurance?
Life insurance companies have developed specific questions to assess the risk around coronavirus for new applications. This is simply to make sure that they have the full picture when they assess your health and medical circumstances.
Coronavirus questions may include:
Have you tested positive for coronavirus?
Are you currently in self-isolation?
Have you had any symptoms of coronavirus?
Have you been in direct contact with anyone who has been diagnosed or suspected of having a coronavirus?
If you answer yes to some of these questions, your decision may be delayed until you have recovered. The decisions may vary between insurer.
If you’re classed as being high-risk because of your medical condition such as people with severe Diabetes, Asthma, Heart Conditions, Auto-immune Diseases, and a number of other conditions, then you won’t be classed as ‘self-isolating’ unless you’ve got symptoms. People who are being advised to stay at home to keep themselves safe will just be classed as a standard low-risk individual.
Obviously having the vaccine is a separate issue which they don’t mention, but individuals who ask insurers will they pay out on death caused by the vaccine are being told NO as it is not a vaccine, but an experimental medical intervention. Be advised.
A
worldwide increase in natural catastrophes is already hitting global
supply chains and causing a spike in business interruption insurance
claims, a senior executive with Allianz Global Corporate &
Specialty has warned.
AGCS
chief regions and markets officer Sinead Browne said this trend,
which she directly linked to climate change, was pushing premiums up
around the world, adding this "correction" was likely to
continue for the "next few years".
While
property damage is the most obvious effect of extreme weather events,
Ms Browne said business interruption resulting from these events was
proving costlier, claim for claim, than property damage.
"The
average business interruption claim that we pay out is €3 million,
versus a property damage claim of €2 million," Ms Browne, who
is based in the UK but has responsibility for the Australian arm of
the business, said.
Ms
Browne said global interconnectedness including Asian countries being
used for low-cost manufacturing was pushing premiums up around the
world. "We’re seeing what we would call corrections, which
means an upwards movement in insurance pricing following many, many
years of downward pricing movement. That’s absolutely a global
trend," she said.
“If
we look at natural catastrophe events, we’ve seen over the last two
years very heavy events not just in the US but also in Asia. That is
of course driving unprofitability into global portfolios which then
requires remediation action, leading to pricing increases."
She
said the spike in natural catastrophes was "all ... about
climate change" and the net effect was increased premiums.
"The
insurance industry needs to protect its balance sheet, and if the
insurance industry is to sustain its ability to cover natural
catastrophe disasters, it has to increase premiums in order to ensure
that the premium pool is there to pay for these claims when they do
arrive," she said.
"I
would certainly see over the next few years we will be taking serious
steps to adequately price our property portfolios and any portfolios
that are subjected to nat cat."
Last
week, global reinsurer Swiss Re put out its 'sigma' reinsurance
figures for 2018, in which it found total insured losses from natural
catastrophe events in 2018 were $US76 billion, the fourth highest on
sigma records.
The
combined insurance losses from natural disasters in 2017 and 2018,
meanwhile, were $US219 billion, the highest ever for a two-year
period.
So-called
"secondary perils" – which are events such as river
floods, heavy rainfall and bushfires, as opposed to traditional
catastrophes such as cyclones and earthquakes – accounted for more
than half of these claims.
Swiss
Re warned these secondary perils were increasing, and the huge losses
over the last year should serve as a "wake-up call for the
insurance industry".
Allianz
is one of an increasing number of global insurers to join climate
change action initiatives, such as UN's Principles for Sustainable
Insurance. It has also reduced its underwriting of and investment in
coal.
While
the Australian insurance industry and regulators such as the Reserve
Bank of Australia and the Australian Prudential Regulation Authority
have taken steps to address climate change, the federal government
has been criticised for its inaction.
Ms
Browne did not comment on Australian government policy, but she said
she was "quite impressed" with what the UK government and
the European Union were doing to mitigate climate change.
IAG
turning down new property insurance in Wellington region
Earthquake
Commission Minister Megan Woods has confirmed the country's largest
general insurance provider is refusing to take on any new property
business in the Wellington market.
Earthquake
Commission Minister Megan Woods has confirmed the country's largest
general insurance provider is refusing to take on any new property
business in the Wellington market.
RNZ
reported this week that IAG, the parent company to AMI and State
Insurance, was no longer accepting new customers for contents
insurance in the capital.
However,
the minister has now revealed it is also declining property insurance
applications.
"My
understanding is that for ... the IAG group of companies it is
broader than contents - it is about the ability to insure houses.
"My
understanding is they're doing it on a case-by-case basis - whatever
that means. I think that we need to seek some clarifications from IAG
on what that means."
The
company has about 50 percent of the Wellington market, she said.
Dr
Woods said IAG had decided not to take on risk-based pricing.
"They're just not offering cover in the Wellington region. We're
still in the position of seeking some more information from the
insurers."
Existing
policies would not be affected at this stage.
The
company makes up almost half of the country's insurance market.
Dr
Woods said there was still insurance available in Wellington.
"We
had officials speak to a range of people including IAG today, to seek
reassurances from other companies there weren't plans to change their
position.
"We
have had those reassurances there is still insurance available and
there are no plans to change that situation at this stage."
Asked
what this meant for premiums from other companies, Dr Woods said some
companies were going to use risk-based pricing.
"Always
with insurance people will need to have to shop around. They need to
see what premiums suits them, what level of risk they're willing to
tolerate in terms of the excess."
Tower
Insurance last year confirmed customers in earthquake-prone areas
would have to pay more under its risk-based pricing. In June last
year the company said said about 2000 people - or less than 1 percent
of customers - would be getting an increase of more than $2000 while
97 percent would have a small decrease in premiums of $50-$100.
Mortgage
advisor Bruce Patten said IAG had a large foothold in the market and
its decision could have a significant impact.
"The
problem it causes is that pressure will come on the other insurers in
the area, and that may result in them holding too high a risk, and
they may pull out as well."
He
said IAG owned a lot of insurance brands, and one company shouldn't
be allowed to have such a large part of the market.
If
home buyers can't get insurance the bank won't give them a mortgage,
he said.
But
Wellington mayor Justin Lester is confident there is enough
competition in the Wellington market to give residents good insurance
options.
He
said IAG was overexposed to the Wellington market relative to the
other parts of the country.
"If
there was a large-scale event in Wellington it could damage them
financially."
The
company's situation was similar to that of AMI in Christchurch, which
had to be bailed out after the 2011 quakes.
IAG
bought AMI in 2012 and a Crown company, Southern Response, was set up
to take over $2 billion of outstanding earthquake claims.
Mr
Lester said he was an IAG customer and was told if he moved houses he
could be reinsured with the company.
He
said after talking to the Insurance Council and Dr Woods he did not
believe other companies would pull out of the region.
'Ongoing
review' of EQC Act
Dr
Woods said there were a number of backstops through the EQC Act to
offer people natural disaster cover.
"Natural
disaster cover is linked to your house insurance policy, but there is
a provision in the act that if you can supply evidence you are unable
to secure private insurance in the market, you can get direct natural
disaster cover through EQC."
Under
EQC cover for contents, insurers would pay the first $20,000 before
EQC cover would come in.
She
said she would be pressing the insurance company on this in coming
days.
"We
removed contents cover from the EQC Act at the end of last year. We
have submissions from the insurance industry saying they supported
this move because their belief was the private market would be able
to pick up that area of risk.
"I
will certainly be asking some questions in that area."
She
said there was an ongoing stage two review of the EQC Act.
"We
have to look at the act and give it a lot of scrutiny and say, 'Is
this modern? Is it fit for the future or fit for purpose?' "
IAG,
the parent company for AMI and State, changed its policy Monday last
week and will no longer take on new customers in the Wellington area.
Companies
such as ASB, which has IAG as an underwriter, would also be affected.
ASB
said in a statement that in the wake of the damage done by the
Kaikōura earthquake, Wellington remained a high risk area for home
and contents cover.
"This
has resulted in a conservative approach in Wellington for new
business", the statement said. "ASB, in conjunction with
its General Insurance provider IAG, assesses each application on a
case-by-case basis."
Consumer
NZ head of research Jessica Wilson said the watchdog's most recent
survey showed some companies were clamping down.
"We're
seeing insurers either not willing to provide new policies in
particular areas or increasing premiums to the point where they're
going to be unaffordable for many consumers.
"So
that's effectively the insurer signalling it's not willing to provide
coverage for the person," she said. Meanwhile, across the Ditch...
For
most of us, the problem is in someone else’s backyard, in some
other neighbourhood.
But
for an increasing number of Australians, it’s right on their
doorsteps. Many just don’t know it … yet.
Roughly
850,000 homes — nearly one in 10 — could be “uninsurable”
within a few generations unless there are fundamental changes to
where and how properties are built, a leading climate analyst says.
The
warning comes as separate data, published by the Actuaries Institute,
reveals the frequency of extreme weather in the country’s
worst-affected regions has doubled compared to the long-term average.
Wild
weather hits Mascot
The
increased frequency of extreme weather events poses serious
challenges to the insurance industry. AAP: Tracey Nearmy
Karl
Sullivan, general manager of policy risk and disaster for the
Insurance Council of Australia said the data will “help the
underwriting side of the industry have a better, sharper discussion
about what that future might look like.”
But
the insurance industry is already on the brink of “dangerous market
failure”, according to Karl Mallon, director of science and systems
at climate analytics company Climate Risk.
“If
the industry doesn’t step up, we’ll all pay — both as taxpayers
picking up the bill for the recovery … or because of the impact on
our communities and our economies,” says Dr Mallon.
“This
is a cost that is avoidable and we shouldn’t be walking into this
but we are. We absolutely are.”
Do
the insurers know something the public doesn't? Or is this another
example of the New Zealand real economy headed for disaster? Maybe
both things are true at the same time? Wellington
renters struggle to get contents insurance
One
of the country's biggest insurers is limiting the amount of contents
insurance policies it approves in Wellington, leaving renters trying
to find coverage elsewhere.
IAG,
the parent company of insurance brands AMI and State, has changed its
policy and now will take on no new customers in the Wellington area.
But
some Wellingtonians have been struggling to get insurance since last
year and are having to consider more expensive means to get coverage,
or simply go without.
Having
heard of cases of renters turned down by AMI and State, RNZ made
inquiries to their parent company IAG to find out why.
In
a statement the company denied it was simply turning away prospective
new customers wanting contents insurance.
"With
regards to Wellington, we are still considering each insurance
application on a case-by-case basis. We continue to be cautious and
selective in our underwriting approach in Wellington."
But
when RNZ called AMI and State posing as a customer wanting a quote
for contents insurance, to confirm the information from IAG was true,
we were instead told unless we were a pre-existing or prior customer
we could not take out a policy for contents insurance.
After
approaching IAG again for clarification, they said in the wake of the
damage caused by the Kaikōura earthquake, Wellington remains a high
risk area.
"IAG
continues to take a conservative approach in Wellington, although
some applications for contents cover in that area are still being
approved.
"We
remain committed to providing cover in Wellington and across New
Zealand."
This
latest policy has been in place since Monday last week, but
Wellington renter Ruby Rowe said she had been unable to get insurance
since moving into a second floor apartment in Central Wellington
almost a year ago.
"I
called up State first and they said they aren't insuring that
particular type of property at the moment, I said 'is that because of
the Kaikōura earthquake?' and they denied that, but said they
weren't insuring this type of building without elaborating any
further, so that was quite frustrating," she said.
Ms
Rowe then tried AA with no luck and then AMI, which insured the
previous tenant, but again could not get any insurance cover.
Her
flatmate got coverage through a private broker, but Ms Rowe said
that's simply not affordable for her.
She
said the whole experience has been a nightmare, especially as she had
been previously insured by State.
"When
I was living in Dunedin all of my premiums went down, because I
didn't make any claims and I've paid a lot of money to them over the
years, then I come up here and it's like that loyalty is completely
one-sided," she said.
RNZ
also called AA, which is not under IAG, and RNZ was able to get a
quote for coverage.
Renters
United's Robert Whitaker said many people won't have even considered
insurance coverage before signing a lease.
"The
situation in Wellington
is so bad at
the moment trying to find a place, thinking about whether or not
somewhere may get insurance is probably quite far down a renter's
priority list," he said. Dr. Jane Kelsey reveals in her book "the Fire Economy" the role played by insurance in New Zealand's neoliberal economy
The
FIRE economy – built on finance, insurance and real estate – is
now the world’s principal source of wealth creation. Its rise has
transformed our political, economic and social landscapes, supported
by a neoliberal regime that celebrates markets, profit and risk. From
rising inequality and ballooning household debt to a global financial
crisis and fiscal austerity, the neoliberal ‘orthodoxy’ has
brought instability and empowered the few. Yet it remains remarkably
resilient, even resurgent, in New Zealand and abroad.
In
1995 Jane Kelsey set out a groundbreaking account of the neoliberal
revolution in The New Zealand Experiment. Now she marshals an
exceptional range of evidence to show how this transfer of wealth and
power has been systematically embedded over three decades.
Today
organisations and commentators once at the vanguard of neoliberal
reform, including the IMF and Financial Times journalist Martin Wolf,
are warning the current model is unsustainable. A post-neoliberal era
beckons. In The FIRE Economy Kelsey identifies the risks posed by
FIRE and the barriers embedded neoliberalism presents to a
progressive, post-neoliberal transformation – and urges us to act.
This is a book New Zealand cannot afford to ignore.
"Deposit guarantee company Deposit Power is now under external administration following the placement of Auckland-based CBL Insurance into interim liquidation"
I
was alerted to this by Zero Hedge which quoted from the Australian
Financial Review.
As
far as I can see this is totally UN-reported
in New Zealand
Collapse
Of New Zealand "Guarantor" Puts 10,000 Homes At Risk
A
leading national property finance company has collapsed potentially
leaving an estimated 10,000 residential, commercial and property
investors in the lurch about the fate of nearly $300 million worth of
deposits.
Deposit
Power, which provided interim finance to property buyers, has closed
its doors after the collapse of New Zealand's CBL's insurance, which
was an issuer and guarantor of deposit bonds.
Sale
Complications
Worried
mortgage brokers, who recommended the products to clients, are
seeking advice on whether clients need to buy other cover, or secure
additional or replacement financial risk bonds. It could mean
unspecified risks, uncertainty and deal delays for tens of thousands
of counter parties, financiers and their representatives, including
lawyers and other brokers.
Mortgage
brokers, who act as an intermediary between borrowers and lenders,
are being warned the status of existing loan guarantees is unknown,
pending applications will not be processed and no payments have been
taken.
Investors
calling the Sydney-based office are being answered by a recorded
message the company is facing "external
issues"
and that it is unable to process any deals.
Deposit
Power's bonds were sold to individuals, first time buyers, retirees,
self-employed borrowers, trusts, corporate entities, or self managed
super funds purchasing commercial or residential property. It was
established in 2012 and regulated by the Australian Securities and
Investments Commission.
They
were also heavily marketed to first time and off the plan property
investors. A deposit guarantee is an alternative method of placing a
deposit on a property.
CBL
in Interim Liquidation
The
New Zealand High Court last month ordered CBL Insurance be placed in
interim liquidation on an application by the Reserve Bank of New
Zealand as the insurer's prudential supervisor.
In
New Zealand, liquidators are warning those insured by CBL, or any
beneficiaries of its policies, to seek advice on whether they need to
buy other cover or secure additional, or replacement financial risk
bonds.
Information
Lacking
According
to the article, CBL
has yet to inform Australian liquidators about whether Sydney-based
Deposit Power will fully, or partially, back the bonds.
Here's
a hint: When authorities shut down guarantors, it's because they have
gone bust. The question is not whether anyone will be fully paid
back, it's whether anyone will be paid back anything.
Guarantee
Scams
Guarantors
make money in good times but because of leverage they go bust in bad
times. In
the case of CBL, we see the true nature of its guarantee: It was
worthless.
Deposit
guarantee company Deposit Power is now under external administration
following the placement of Auckland-based CBL Insurance into interim
liquidation.
External
administrators from Chifley Advisory were appointed to the company
last week.
Deposit
Power acted as an authorised manager and agent of CBL Insurance –
which provided all the deposit guarantee bond products sold by
Deposit Power in Australia.
The
deposit guarantee company had offered products assisting Australian
borrowers and investors to buy residential and commercial properties
without the need to provide a cash deposit. In a report by the
Australian Financial Review, an estimated 10,000 residential,
commercial, and property investors could be affected by the company’s
collapse.
A
call to the company’s Sydney office was only answered by a recorded
message saying the company is experiencing external issues and as a
result, is not able to process applications on behalf of CBL
Insurance.
A
notice from the external administrators says CBL Insurance is “liable
to pay any valid claims payable to any beneficiary of any guarantee
issue by them”, and that all claims should be directed to CBL
Insurance.
New
Zealand’s High Court ordered CBL Insurance last month to be placed
into interim liquidation following the Reserve Bank of New Zealand’s
application.
Auckland-based
insurance broker and building warranty provider Stamford Insurance
said in a statement yesterday that it has stepped in to protect CBL
Insurance clients. Stamford said it has secured Lloyd's of London’s
help to protect buyers and homeowners.
It
is not clear from the company's statement if its scheme to protect
CBL Insurance clients will cover those in Australia as well.
“The
underwriters in London responded immediately to our request and are
committed to providing New Zealand homebuyers with the finest
building warranties," said Stamford director Duncan Colebrook in
the statement.
Stamford
said its scheme will do the following:
1.
For buyers who have signed a contract and paid a deposit where work
has yet to start, Stamford will cover the risk that they may lose
their deposit if their builder becomes insolvent.
2.
If construction has already started, Stamford will guard against
builder insolvency and provide 10 years’ defects cover on
completion.
3.
For homeowners who have taken possession of their homes within the
past 12 months and who may have lost their protection against major
defects arising with their home, Stamford will offer them a new 10
year policy.
Deposit
Power’s external administrators said in the notice that an
interested party may buy the company’s business, but that “the
sale has its complications as the company was only an
agent/authorised manager of CBL Insurance”.
“Given
the nature of the company’s operation, any sale transaction will
need to happen quickly, or it will not happen at all.”
They
said they are currently maintaining all employees of the company to
assist with enquiries from stakeholders and in an effort to sell the
business.
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