New Zealand insurance industry adjusts to a new normal post Christchurch earthquake.
There have been a number of positive indicators for the New Zealand insurance industry in the past year – as it adjusts to the ‘new normal’ of the post-earthquake environment.
KPMG’s Insurance Update 2013 reports that insurers have been making good inroads into the recovery process of the Christchurch earthquakes.
Jamie Munro, of KPMG’s Financial Services division, describes the year to June 30 2013 as a “transitional time” for the local general insurance industry.
"Insurers have been making good inroads into the recovery process. They now have an increased understanding on the factors impacting settlements, as well as clarity from court cases coming through."
During the year ended June 30 2013, business across the insurance industry performed well. There was a 4% increase in gross written premium – to a total $4.64 billion across all classes of business.
The year was also notable for a major change in the underwriting of property risk – resulting in some new responsibilities given to policyholders.
“We’ve seen most of the industry moving from the traditional open-ended replacement cover, to fixed sum insurance policies,” says Jamie Munro. “This move was expected, as global reinsurers were unwilling to take on un-quantified cover. It has pushed the onus back on the insured to understanding the value of their property – and what is and isn’t included – when deciding on the sum insured value.”
Other topics in the KPMG Insurance Update include: the use of ‘big data’ analytics, new-generation customer engagement strategies, and key taxation issues for the insurance industry.
© 2017 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.