In-Touch with Keystone : July 2024
Welcome to the the July edition of In-Touch
This newsletter briefs you on matters affecting everyone with house, contents, and vehicle insurance!
Recent changes to Fire and Emergency New Zealand, the Earthquake Commission, and ongoing developments regarding New Zealand insurance companies’ ability to secure reinsurance will impact everyone.
In this special edition of In-Touch, see how these changes will affect you and your insurance cover.
Fire and Emergency New Zealand levy increases
From 1st July 2024, Fire and Emergency New Zealand (FENZ) has increased the levies they add to house, contents, and vehicle insurance. These levies are collected by your general insurer on behalf of FENZ. The levy for house and contents insurance has increased from 10.6c per $100 insured to 11.95c per $100 insured. The levy for vehicle insurance has increased from a flat fee of $8.45 to $9.53 per vehicle. These increases will be added to your insurance premiums on their first billing anniversary after 1st July 2024.
The Earthquake Commission re-named
From 1st July 2024, the Earthquake Commission was renamed the Natural Hazards Commission Toka Tū Ake (NHC). This is due to new legislation introduced – the Natural Hazards Insurance Act 2023. The Act will enable the NHC to continue to provide a national natural hazards disaster scheme in New Zealand. Levies are collected by your general insurer on behalf of the NHC.
Attached is a flyer explaining the natural hazards cover NHC provides. It also suggests you speak to your insurance adviser to help you with claims.
Following the terrible New Zealand 2023 flooding and cyclone, Keystone Financial Solutions helped people process several house and contents claims, all with insurer Vero. The feedback we received certainly highlights the importance of having an adviser in your corner at claim time. Having someone to help you with what can be a stressful time should be a priority when selecting a general insurance provider.
Keystone secured over $700,000 of settlements and repairs for our clients from 2023 flood and cyclone disaster claims.
New Zealand’s high risk of natural disaster: ongoing changes to insurance premiums and cover
New Zealand is the second most vulnerable country to natural hazards in the world when measured by the predicted annual cost of such events as a percentage of GDP. This is a key reason why reinsurance (insurance for insurance companies) is more expensive and challenging to obtain from global reinsurers. The Insurance Council of New Zealand says reinsurance costs have risen by up to 40 per cent. This in turn increases the cost of insurers' premiums for house, contents and vehicle insurance. Premiums will continue to increase as these reinsurance costs rise.
The insurance sector saw a significant change to house insurance after the Christchurch earthquakes, and further changes could be in the future as reinsurers assess New Zealand’s risk of natural disasters. It will be important to understand future changes to your insurance and what this means for you. Keystone Financial Solutions will continue to provide regular updates.
How to save money on your general insurance premiums
With the increases in insurance premiums over the last few years and the increases discussed above, the cost of insurance will continue to be an issue for many. Keystone Financial Solutions can help you obtain value for your premiums with quality cover, ensuring you are not over-insuring your house's sum insured by reviewing it each year against an independent rebuilding calculator, offering a range of excesses and benefits, and making suggestions to fit your budget.
By having Keystone Financial Solutions as your insurance adviser for your house and contents insurance, you have an expert to advocate for you in the event of a claim, and to assist you during the process and for any other requirements and changes. Other than the premium you pay for your insurance, there is no additional cost for this service. If you take out insurance directly with an insurer, you must deal with them and their claims or service requirements processes yourself.
Thanks for reading!
Thanks for reading this issue of In-Touch, and I wish you all the very best for the coming months. If you have any questions about something you've read or you'd like some advice on personal insurance, feel free to contact Keystone using the details below.