Latest news with #AmandaWhiting
NZ Herald
a day ago
- Business
- NZ Herald
Insurance premium growth to finally abate if not fall, say Suncorp and IAG chief executives
Suncorp, which sells insurance via the Vero and AA Insurance brands, as well as banks, collected 8.3% more in home insurance premiums in the year to June, compared to the previous year. Meanwhile, IAG New Zealand, which sells insurance via the AMI, State, NZI, NAC, Lumley and Lantern brands, as well as banks, collected north of 10% more in home insurance premiums. The growth in both insurers' cases was driven more by them upping premiums than selling more policies. As for motor insurance, IAG's motor premium collection fell, while Suncorp's only inched up 0.5%. Both Higgins and IAG New Zealand chief executive Amanda Whiting suspected the cost-of-living crisis might have prompted people to cut back on the amount they drove. Higgins also wondered whether households reduced the number of cars they had. The chief executives of the two Australian-owned giants, which released their annual results this week, noted the story was quite different in the commercial insurance space. Indeed, commercial insurance premiums fell during the year – with Suncorp collecting 5.3% less in premiums. Higgins explained a number of new underwriters, including those part of the Lloyds of London network, entered the market after Cyclone Gabrielle and the floods. With the incumbents forced to raise premiums to cover higher reinsurance costs and recoup losses from the events, the new entrants seized the opportunity to undercut them. Higgins said there was a similar situation following the 2010/11 Canterbury earthquakes. The underwriters that didn't face the costs of those in the market during the disasters could come in and scoop up business by offering lower premiums. IAG New Zealand chief executive Amanda Whiting draws attention to the cyclic nature of commercial insurance. Photo / Supplied Whiting described the situation as being cyclic. Higgins said the value of the big incumbents was that they were in the market for the long haul. They had established networks and weren't going to exit the market after expensive events. He said businesses under pressure due to the tough economic environment were trying to save money by agreeing to pay larger excesses. He also noted Suncorp had taken a knock by government departments watering down their insurance cover to save money, but this exposed the Crown's balance sheet to greater risk. Despite the market being soft, a year of relatively good weather helped both insurers grow their profits substantially in the year to June. Suncorp reported a A$457 million ($501.6m) insurance trading result – a 95% increase from the previous year. IAG New Zealand reported an insurance profit of A$606m – a 33% rise from the previous year. Jenée Tibshraeny is the Herald's Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
RNZ News
04-07-2025
- Business
- RNZ News
Insurance companies urge use of Takapuna golf course for flood prevention
Thousands of insurance claims were lodged after 2023 floods in the area. Photo: Davina Zimmer Insurance companies say using a golf course on Auckland's North Shore to prevent flooding may be a necessary sacrifice for golfers. Auckland Council proposes converting half the Takapuna Golf Course into a flood catchment, which golfing bodies and prominent figures in the sport oppose. Insurance Council chief executive Kris Faafoi said their members received 1000 claims from homes and businesses in the areas around the golf course, after the Auckland Anniversary floods and Cyclone Gabrielle in 2023. "What we're asking, as insurers of those areas, is to make sure we can protect families and keep insurance available to those communities. "We've got to make sure that there's a balanced debate and, as well as the emotion of a golf course and enjoying a golf course, there's a good hard look at some of the realities that might happen if there's another [extreme weather] event like that and how we can protect people from the kind of pain they suffered a little over two years ago." Faafoi said, as a golfer himself, ideally, the golf course could be maintained, but the council needed to do its job to deal with the natural hazard risk. IAG chief executive Amanda Whiting said the proposal prioritised the safety of Aucklanders living in the surrounding area. She said her insurance company received more than 3000 claims for homes, vehicles and businesses in neighbouring suburbs, after the 2023 weather events. "As New Zealand's largest general insurer, our priority is protecting people, property and communities from the increasing risks posed by extreme weather and flooding. The reality is that climate change is driving more frequent and severe flood events. "Strategic land-use decisions like this, which build resilience and reduce future harm, are essential to keeping insurance both accessible and affordable. "Investing in natural hazard protection now helps avoid far greater costs later." The council said it would assess a revised proposal from Takapuna Golf Club and make a decision in the coming weeks. Construction on any approved plan for the flood catchment at the golf course was not expected to begin until 2027. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
17-06-2025
- Business
- RNZ News
IAG says New Zealand at climate crossroads
A house in South Dunedin. Photo: RNZ / Nathan Mckinnon New Zealanders expect more severe and more frequent climate hazards which are set to drive their impact their insurance premiums, according to a new report. The IAG commissioned report showed 71 percent agreed they should pay higher premiums to live in a high-risk area, but only 17 percent were willing to subsidise the insurance premiums of those that chose to do so. IAG NZ climate spokesperson Bryce Davies said consumers were conscious of the choices facing them. "I think there's a recognition of growing risks and there's an expectation that people are rewarded for their own actions and managing the risk that they face." He said people want to be rewarded with lower premiums for the good decisions they made for living in lower risk areas. The survey indicated widespread support for avoiding and reducing development in high-risk areas, making buildings and infrastructure more resilient and better protected, including by using natural solutions. But at the same time, only 25 percent could be marked as doing a good job at reducing the impacts of climate change. Australian owned IAG's local brands include AMI, State, NZI, Lumley and Lantern. IAG NZ chief executive Amanda Whiting said the country was approaching a crossroads and faced having to make key decisions. "We can commit to reducing risk and investing in resilience and adaptation to help keep insurance available and affordable for as many people as possible. "Or we can keep doing what we are doing and risk rising costs, reduced coverage, and the possibility that some homes may become too risky or expensive to insure." Seventy-five percent of respondents said it was the government's responsibility to act on climate change, but Bryce Davies said that while government does have a responsibility around infrastructure, it was not a simple of question of money. He said the survey highlighted that people believe central and local government, business and individuals all have a role to in climate action. But what is needed from central government is good leadership, ensuring that good decisions are made around areas such as urban planning.
Scoop
16-06-2025
- Business
- Scoop
AMI, State And NZI 2025 Climate Poll: New Zealand At Climate Change Crossroads
New Zealanders want more action to keep insurance affordable in the face of climate change. New Zealanders are expecting more extreme weather events as a result of climate change. They want more to be done to reduce the risks and costs of these events to help keep insurance affordable and available. According to the latest climate change poll from AMI, State, and NZI, 90% of New Zealanders anticipate more extreme storms, 89% foresee more frequent and intense flooding, and 88% expect coastal flooding due to rising sea levels. Amanda Whiting, CEO of AMI, State and NZI says: 'Recent and regular weather events are still fresh in people's minds and continue to have a profound effect on the country, highlighting for many the very real impact that our changing climate is having on our communities.' As New Zealanders brace for a future shaped by more frequent and severe climate events, many expect the cost of these events to be reflected in insurance premiums. However, they only want to pay for the risks they themselves face: · 60% agree that insurers should raise premiums for those that face more risk. · 45% say that people only paying for the risk they face is the fairest way to set premiums, with 10% saying that everyone paying the same regardless of the risk they face is fairest. · 71% say they accept that they will have to pay more for their insurance if they live in a high-risk location, but only 17% say they are willing to subsidise the insurance of people who live in high-risk locations. · 60% of people agree that insurers should focus on incentivising risk reduction by making it more difficult or more costly to insure in high-risk areas. 'New Zealanders understand that increased risk leads to higher insurance costs and that greater use of risk-based pricing is the fairest way to reflect those costs in people's premiums. However, New Zealanders' desire for greater risk-based pricing and the incentives it creates to reduce risk is matched by a desire to keep people insured, reflecting the importance people place on insurance. · 74% of people agree that insurers should focus on keeping as many homes insured as possible amidst growing climate hazards. · 87% of people agree that house and contents insurance is important to have. 'Continuing to meet people's expectations of fair pricing while keeping our most exposed communities insured will become ever more difficult to achieve without urgent and significant risk reduction. 'We are fast approaching a crossroads and need to make an important decision about which path we take,' says Amanda. 'We can commit to reducing risk and investing in resilience and adaptation to help keep insurance available and affordable for as many people as possible. Or we can keep doing what we are doing and risk rising costs, reduced coverage, and the possibility that some homes may become too risky or expensive to insure.' New Zealanders want to see more action to reduce the risk of climate change hazards. · 80% say we should do more to modify our environment to fit in with the impacts of climate hazards. · 77% say we should do more to avoid or reduce development in high-risk locations. · 77% say we should do more to make buildings and infrastructure more resilient to the impacts of climate hazards. 'The need for action is clear. New Zealanders want to see smarter decisions about where and how we build and more investment in infrastructure and natural solutions to protect our homes, businesses and communities. 'Ultimately, if we want to keep people protected, we need to address the underlying risks. That means acting decisively, together, and with urgency. Reducing risk is the fairest and most durable way to ensure we can continue to insure as many New Zealanders as possible.' *The survey of 1,001 people was commissioned by IAG New Zealand and conducted by Ipsos Ltd in May 2025. The survey has a margin of error of ± (plus or minus) 3.1 per cent.
Scoop
15-05-2025
- Business
- Scoop
New Zealand's $64 Billion Spend On Natural Hazards Heavily Skewed To Recovery Over Resilience
Press Release – IAG New Zealand Amanda Whiting says: It is clear we need to do more to reduce natural hazard risk, especially when we know that there is a strong case for doing so. International research shows that a dollar invested in risk reduction can reduce spending on response and … Research commissioned by IAG New Zealand shows that the Government has spent at least $19 billion on responding to natural hazards since 2010, and a further $14 billion through its public insurance schemes. When the $31 billion spent by private insurers is included, the total cost of natural hazards since 2010 is $64 billion. Adjusted for inflation this equates to an average of $5.5 billion per year, of which the Government's share is about half. IAG New Zealand CEO Amanda Whiting says: 'This research highlights again the significant financial cost that natural hazards have on New Zealanders, and the urgent need to reduce their impacts. 'These costs represent a drag on our economy and work against the growth and financial strength required to support the needs and aspirations of New Zealanders.' The research also shows that 97% of the Government's expenditure was on responding to and recovering from natural disasters, with the response to the Canterbury earthquakes, Kaikoura earthquake and the North Island weather events of 2023 dominating spending. Only 3% was spent on risk reduction and resilience. The total amount spent, will in fact, be much higher. This is because this research does not include significant spending by local government, such as the $8.2 billion that the Christchurch City Council is projected to ultimately spend on recovery in response to the Canterbury and Kaikoura earthquakes. It also does not include the wider social and economic costs which Deloitte suggests could account for at least 50% more cost [1]. Amanda Whiting adds: 'It is clear we need to do more to reduce natural hazard risk, especially when we know that there is a strong case for doing so. International research shows that a dollar invested in risk reduction can reduce spending on response and recovery by four dollars [2]. 'Reducing natural hazard risk is as much about improving the decisions we make as the money we spend to improve the safety and resilience of our homes, businesses and infrastructure. 'It is also clear from this research that New Zealand has an incomplete understanding of the costs of its natural hazards. Fixing this will enable better decisions to be made on when, where and how to reduce risk. This is becoming even more important as natural hazard events increase in frequency and severity. 'We need to prioritise improving how the actual costs of natural hazard events are recorded by central and local government, so that we know how much we are spending, on what and where. Alongside this, we must quickly move to understand the underlying trends, regularly model the expected financial impact of natural hazards, set relative benchmarks and closely monitor changes in risk over time. 'IAG continues to invest significantly in data and its application to improve decision making and is working with government and other partners to put this capability to use in improving how natural hazard risk is managed. This is a priority for us and must be a priority for New Zealand.' [2] Mechler, R. Reviewing estimates of the economic efficiency of disaster risk management: opportunities and limitations of using risk-based cost–benefit analysis. Nat Hazards 81, 2121–2147 (2016) About IAG: IAG New Zealand is the largest general insurer in the country, trading under the AMI, State, NZI, NAC, Lumley and Lantern brands, as well as providing the general insurance products sold by ASB, BNZ, Westpac and The Co-operative Bank. IAG New Zealand employs over 4,000 people, holds relationships with one in every two New Zealand households, and insures over NZ$1.07 trillion of commercial and domestic assets.
