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Climate Change Puts Insurance In The Spotlight; Which Insurer Is Best?

Mitigating risk to your home and property has never been more important – with thousands of homeowners still picking up the pieces after the devastating impacts of the North Island floods and Cyclone Gabrielle.

As the link between your home insurance and the impacts of climate change becomes increasingly intertwined, Canstar is today proud to announce AA Insurance as the winner of its inaugural, expert-rated Home and Contents Insurer of the Year award.

AA Insurance won the award due to the combination of outstanding value ratings across its Home and Contents products, combined with market-leading scores on the five customer satisfaction metrics including Customer Service, Value for Money, Comprehensiveness, Communication and Cost. The AA Insurance team also won an Outstanding Value award, which assesses the value provided to customers from its home and contents products.

Jose George, Canstar New Zealand General Manager, said: “Home and Contents insurance is an important household purchase. However, insurance can be expensive and there is often cynicism around how well providers will look after their customers if a claim is made.

“We hope our research and this award helps New Zealanders make decisions around what insurer offers the best product for their needs, including the level of customer service.”

AA Insurance actively assesses the risks associated with properties, including those which are more exposed to natural hazards such as earthquakes, or in low-lying or coastal areas. The insurer also encourages customers to check their cover to make sure the increased risks associated with climate change are fully considered. Customers have options to manage their premiums, including by increasing their excess, considering multi-policy discounts or paying premiums annually rather than monthly.

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Richard Park, General Manager Marketing, Portfolio and Pricing at AA Insurance said “The Home and Contents Insurer of the Year Award, and the Outstanding Value Award for our Home and Contents policies acknowledge the commitment of our teams across the business to provide great experiences for customers. Home and contents insurance helps people face the impact of our changing climate with confidence, and at AA Insurance we’re proud to be protecting what matters most to our customers.”

Three other insurers, TradeMe, AMP and Tower also won Outstanding Value awards for their home and contents insurance offers. The providers all commented on the importance of providing value to customers as the risks of climate change increase.

Jeremy Wade, Head of Classifieds at Trade Me said, “We are stoked that Kiwis all over Aotearoa recognise the outstanding value we bring through our home and contents insurance. It's important that in today's environment we remain competitive while offering the features Kiwi are looking for. This trust-mark validates that we're on the right track and delivering great value to our customers.”

AMP’s head of General Insurance Rob Dibley noted, “It is fabulous that people see our Everyday Home & Household Contents products as outstanding value. At AMP, the client is at the heart of our business and we believe, getting the right insurance solution for you, is fundamental and we encourage people to find “their” best insurance solution.”

Tower Chief Underwriting Officer Ron Mudaliar said, “Recent weather events have sparked broader, deeper conversations across New Zealand about home insurance and the vital role it plays in our personal and collective economic resilience. As a Kiwi owned-and-operated insurer, we have a unique role to play in helping our country navigate climate change, which is why we introduced flood and earthquake risk ratings. This year, we will also be adding landslip and coastal risk to our risk rating tool to help even better protect and prepare Kiwis for the future.”

Tower was also recently recognised by Canstar as an innovator in the insurance sector, winning an Innovation Excellence Award for its flood risk rating tool. The tool offers the most comprehensive flood risk analysis in New Zealand, and its consideration of specific property details, such as build materials and land gradient, makes it far more accurate than existing models.

Tower’s customer research shows that 80% of Kiwis think the impact of climate change will make natural disasters and weather events more prevalent during the next decade, and 78% of Kiwis think that flooding will get worse in New Zealand during the next decade. However, only 24% of Kiwis are confident that they have the right level of insurance to cover all of their risks.

“At Tower we work hard to provide fair, transparent and simple insurance products to suit the modern needs and lifestyles of our customers. We are thrilled to receive a 2023 Canstar Home and Contents Outstanding Value Award,” Mudaliar added.

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