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Market Watch
Market Brief
The insurance market is poised in 2009 to flex its muscles for commercial premium increases.
This follows quite substantial increases already being enforced on domestic insurances where annual increases of 10% to 30% are now common place amongst the wider insurance market.
The insurance market is suffering from the higher cost of claims, higher rebuilding costs, and major weather events occurring once or maybe twice a year in New Zealand.
Commercial insurance increases are anticipated at 5% to 10% in 2009. If your business fits the profile below you can expect a level of premium increase.
- Capacity Class Risks
You require large sums insured and an underwriting “panel” of insurers.
- Higher Hazard
You have either a higher probability Fire or Legal Liability occupation class
- Claims Outcomes
You have experienced either a number of moderate claims, or a large claim.
- >Turnover Adjustments
You are experiencing strong growth and your sales and turnover are up.
- Change in Risk Profile
You have increased your risk profile through acquisition or diversification.
- Buildings Constructed Pre 1935
These remain difficult earthquake placements with limited options.
Generally the premium increases we speak of are nothing more than the usual market forces of supply and demand working as they do in any other commodity. The market is increasing.
Be assured we will manage this market activity on your behalf. However, it may be wise to factor a small increase into your 2009 budget as a safeguard to the market activity now underway.
Weather Related Losses
(Source - Insurance Council of NZ ) |
| $50,500,000 |
|
2007 – Storm, Far North / Coromandel |
| $7,000,000 |
|
2007 – Frost Claim – Otago / Canterbury |
| $8,300,000 |
|
2007 – Tornado Events |
| $1,100,000 |
|
2007 – Flooding Nelson / New Plymouth |
| $12,500,000 |
|
2007 – Storm, Far North |
| $3,400,000 |
|
2006 – Windstorms, Upper North Island |
| $42,500,000 |
|
2006 – Storms, North & South Islands |
| $48 billion |
|
2005 – Hurricane Katrina |
| $28,500,000 |
|
2005 – Storms, Bay of Plenty, Matata |
| $13,000,000 |
|
2005 – Hailstorm, Christchurch |
| $17,600,000 |
|
2004 – Floods, Bay of Plenty |
| $112,000,000 |
|
2004 – Storms, Horowhenua Floods |
| $21,500,000 |
|
2002 – Storms, North Island |
| $4.5 billion |
|
2001 – WTC disaster |
Announcements
NZI Premium Increase 2007
Vero Premium Increase 2007
Lumley Premium Increase 2007 (1)
Lumley Premium Increase 2007(2) |
