Less competition in insurance industry with IAG buy out

IAG’s final approval to buy New Zealand’s Wesfarmer Insurance arm means the insurance industry has become even less competitive, showing the need for a KiwiBank-style company in the sector, says Labour’s Commerce spokesperson Clayton Cosgrove.

“More than 90 per cent of the insurance industry is already owned by offshore interests. That’s just increased even further.

“Many in the insurance industry warned about the threats involved in the merger. Tower chairman Michael Stiassny said the level of market dominance created a ‘significant risk’.

“It’s been clear from the three-year delays in Christchurch that the industry is simply not performing. It needs a shake-up.

“A KiwiBank-style insurance company that acts in Kiwis’ interest is essential to boost competition and raise standards for the industry. Labour’s KiwiAssure will offer New Zealand families an innovative and nimble option that they will have a stake in,” says Clayton Cosgrove.

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