A few days ahead of an insurance forum in Wellington, major insurance company IAG has reaffirmed it will continue to provide insurance in the capital, provided the level of risk is not too high.
In March, there was a lot of media coverage on IAG, and there was speculation that the insurer was withdrawing from the Wellington house and contents insurance market. The following month, IAG announced it would roll out a risk-based pricing model to all its brands starting July. This means the insurer will start to charge higher premiums for customers who live in areas prone to natural disasters and severe weather.
Now, IAG claims it has taken on just under 1,000 new home and contents policies each month since March in Wellington – proof that it is accepting customers looking for insurance in the capital. IAG executive manager of corporate relations Bryce Davis told the publication that IAG would provide residents who apply with contents insurance in the capital, with a few exceptions. While insurance for multi-unit buildings was not guaranteed, IAG, however, would “consider” all applications, based on several factors, he noted.
“So the soil type and the height of the building become much, more important than they do perhaps on a residential home so there are different things that we will look at but what we’re talking about here is the risk that it presents - so a decision is always going to turn on those facts,” Davis explained. “It might be that the price for that insurance might be slightly higher so it’s not a binary of you’re going to get insurance, you’re not – broadly speaking, for Wellington, as for most high-risk locations around New Zealand, insurance is available.
“What we’re seeing the market do – and this is true of international insurance markets as well – is making sure the price actually reflects the underlying level of risk,” he added.
The insurance forum in Wellington will be held on June 10 with Mayor Justin Lester, ministers and insurance companies.
