Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Brokers Concerned At Shrinking Insurance Market

NEWS RELEASE

13 November, 2002

Brokers Concerned At Shrinking Insurance Market

New Zealand representatives of general insurance brokers, the Corporation of Insurance Brokers (CIBNZ) and the Independent Insurance Brokers Association (IIBA) are concerned that recent insurance market developments might lead to constraints in some areas of the general insurance market.

British insurance group Lumley has just announced the sale of its general insurance and financial services operations in Australia and New Zealand, and Royal & SunAlliance is floating its Australasian business in an effort to raise capital.

In addition, IAG, Insurance Australia Group, has entered into an agreement to buy Aviva plc's Australian and New Zealand general insurance businesses, CGU and NZI Insurance. IAG New Zealand trade under the State Insurance and Circle brands and they will buy NZI general insurance, if successful.

Gary Young, President of CIBNZ, says the sale amounts to New Zealand's second and third largest general insurers merging which could have an impact on the market, especially with regard to earthquake capacity.

Robert Martin, President of the IIBA agrees.

"One issue, facing commercial property owners in particular, is whether there will be enough earthquake capacity in Wellington after the sale goes through, as there is only just enough earthquake capacity there at present," he says.

While both broker organisations say they understand the motives behind insurers merging is to stay successful in a very challenging global insurance market, New Zealand has some specific risks, such as earthquake and flooding, which present some challenges for the local market.

They say the role of brokers is to take clients insurance needs to a competitive insurance market and anything that reduces capacity requires due consideration.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news