Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Government needs to ensure competition and fair prices

Government needs to ensure competition and fair prices in insurance industry

New Zealanders could face insurance premium hikes if the National Government continues to sit on its hands over competition in the sector, Green Party Co-leader Dr Russel Norman said today.

IAG is moving to buy the insurance company Lumley and further increase its already dominant position in the New Zealand insurance market.

“This move highlights the need for the Government to adopt recommendations from the Productivity Commission aimed at protecting competition in service industries,” Dr Russel Norman said.

IAG currently owns the NZI, AMI, and State brands, which together make up 40 percent of the $5 billion New Zealand insurance industry. Owning Lumley would boost IAG’s market share to over 50%. The Productivity Commission has recently issued its second interim report on improving productivity in the services sector, recommending strengthening the Commerce Act to prevent abuses of market power.

“It’s not healthy for industries like insurance to be overwhelmingly dominated by a single company; the Government needs to strengthen competition law to ensure families and businesses get fair prices,” said Dr Norman.

“If IAG becomes the owner of the majority of the New Zealand insurance industry, the decrease in competition could result in higher premiums for customers and bigger profits for IAG’s offshore owners.

“The Government needs to listen to the Productivity Commission’s recommendations on boosting competition in service industries. In particular, improving section 36 of the Commerce Act to restrict the exercise of market power would help to prevent situations where industries become dominated by a single player, as is happening in insurance,” said Dr Norman.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Gordon Campbell: On The Ombudsman’s Verdict On Paula Rebstock And Ian Rennie

Unfortunately, the brave and damning report by Ombudsman Ron Paterson on the “flawed” and “unfair” inquiry conducted by Dame Paula Rebstock into events at MFAT pulls back the veil on a far wider issue. More>>

ALSO:

Charities' Report: Stressed Families - Overstretched Services

“Like so many of the whānau and families they serve social service organisations are under huge financial stress. The support demanded from desperate people in communities is far outreaching the resources available.” More>>

ALSO:

Detention: Wellingtonians Protest Treatment Of Refugees

Peace Action Wellington (PAW) and around 50 Wellingtonians blockaded the Australian High Commission, creating a symbolic detention centre to protest the Australian Government's policy of mandatory offshore detention for refugees and asylum seekers. More>>

ALSO:

Diver's Alarums: Breach Means Training Provider Must Repay $1.47 Million

The New Zealand School of Outdoor Studies is to repay $1.47 million (GST-exclusive) to the Tertiary Education Commission (TEC) following an investigation which showed that some student enrolments between 2009 -2014 could not be validated and that courses were under-delivered against their agreement with the TEC. More>>

ALSO:

Education: Government Plans Suggest Bulk Funding Return

Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. More>>

ALSO:

Interim Report: Auckland Looks Long Term To Pay-Per-Km Road Pricing

Aucklanders can expect to be paying variable rates per kilometre to travel on the city's most congested roads under an emerging transport strategy being formulated by the government and the Auckland Council. More>>

ALSO:

Despite Promises: Government Extends Iraq Deployment

Cabinet has agreed to extend New Zealand’s contribution to the joint New Zealand-Australia mission to train Iraqi Security Forces until November 2018. More>>

ALSO:

On The 'Terrorism' Card:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news